A Security Risk Not Many People Talk About
Most people know I'm bullish long term on gold, silver and cryptos (basically anything outside of fiat currency), but there's a lesser known commodity that I'm bullish on -- Uranium.
I've written previously about the supply/demand fundamentals and why I think uranium miners could be a good play in the coming years. However, there is another security issue that not many people talk about.
The United States gets about 20% of it's electricity from nuclear power. In other words, 1 in 5 homes are powered by nuclear.
The United States only producing domestically less than 9% of the uranium used to fuel nuclear reactors. I've actually read that the percentage is much lower now.
You can also see that a large portion of the uranium is coming from countries like Russia and Kazakhstan.
With tensions with countries like Russia going on, it's not smart to rely on uranium that fuels 1 in 5 homes from countries we aren't very friendly with. This is a security risk that I think needs to be addressed.
*This is not investment advice
A risk indeed especially when you factor in the level of supply available from decommissioning nuclear weapons. In the US this is almost done - though not yet in Russia.
I have long been pursuing uranium as an investment avenue - it has not been a happy ride. I present a buy:sell chart which shows S&P500 versus Uranium sector. For the last 5 years there have only been 3 occasions when Uranium has started to perform better than S&P500 (in the blue rings when the chart is going down). The chart using Cameco (CCJ), a mostly US producer does not do any differently.
Your thesis is right BUT it has been hard to make money from the idea. I have but only in spots and I am still invested.
You can read my thinking here mymark.mx/TIB7 posted here on December 19, 2016
Great info! Thanks for the detailed comment.
Monetary interests trump political interests. (no pun intended)
Very true.
You should buy more from Australia we have plenty and the best quality and we don't use the stuff, cheers mate.
You now that you can increase you payouts fast just using BOTs?