Hot Commodity Gains with Uranium Stocks!

Last Updated: 30. November 2023By

Around the world, nations are building new nuclear power plants, resulting in a significant increase in demand for uranium over the next decade. We are not talking about a temporary increase in demand for the next one or two years. We are talking about an increase in demand over a decade and more!

There is no other commodity for which the increase in demand is as certain for years to come as in the uranium market. This is especially true for uranium from politically secure countries. We at the Taipan editorial team are aware that uranium and nuclear energy are controversial topics in Germany and that recommendations for uranium investments are not for every investor.

But we also look at the facts objectively: Germany is taking a lonely and lost special path in nuclear energy. The rest of the world is massively increasing its engagements in nuclear energy. For investors who have no qualms about uranium stocks, there are tremendous opportunities for profits with uranium investments in the coming years.

Uranium: Demand will inevitably increase The uranium story gets even more exciting: In the past few decades, Western suppliers have purchased uranium cheaply from Russia or Russia-adjacent countries such as Kazakhstan or Uzbekistan. These sources have disappeared from the market with Russia’s attack on Ukraine. And it won’t be back for years!

But the supply of uranium from politically stable countries and regions is very low. According to the World Nuclear Association, in 2022, not even 25% of global uranium production came from politically secure countries. This situation will not change quickly.

It takes an above average amount of time to bring new uranium projects into production. Due to the legitimate high environmental standards and the corresponding time-consuming approval processes, the time required to set up a uranium mine is 10 to 15 years. By comparison, the time for a copper mine is only 6 to 10 years.

The secret from the uranium industry: Western uranium is the biggest winner The fundamental situation therefore clearly speaks for rising uranium prices – and even more so for stronger rising prices of uranium from politically stable countries such as Canada, the USA or Australia. I spoke only a few weeks ago in New York at a conference with the CEO of one of the few uranium mine operators in North America that are already producing and selling uranium there.

The CEO told me openly that American suppliers for uranium from North America are currently already paying premiums above the spot price. He did not reveal the amount of the premium from his deals. That is fair. But what I heard from other conversations should already be in the usual premiums between +10% and possibly even +20%. Depending on the deal.

Conclusion: In addition to the fundamental side, there is also the stock market side. And that makes the situation even hotter for uranium investors: In the tight uranium market, there are only a very small number of serious investment options. You know what that means: when the uranium price starts its next rally, the few good uranium investments will shoot through the roof! You have to be in on these values!