Current catalysts confirming a Uranium bull market Substantial supply destruction caused by several major mine closures in Canada and Australia and including cut backs in Kazakistan. This will only get worse until a very significant increase in the uranium price.
Also the very significant increases in demand world wide mostly from China who are building an unprecedented number of new reactors, several of which have already come on line this year.
Japan restarts, 4 or 5 so far this year and several more over coming months.
New Funds such a Yellow Cake taking millions of pounds of U308 off the market to add to millions more that Cameco has to buy to fulfil contracts over the next year or so.
There are also rumours that other financial entities are planning to start similar funds. That’s only rumour but personally I’d be very surprised if it doesn’t happen.
All this is creating a substantial supply deficit for 2018 let alone 2019.
Spot has increased about 35% this year and UxC have stated they expect it to continue trending up.
Annual spot volumes for 2018 have already set a 28 year record and there are still three months to the end of the year!
Then there is sentiment, some would say the most significant piece of the puzzle because when you look at todays casino style markets..ie the Bitcoin bubble and currently the Cannabis bubble and then you examine the Uranium market, which is highly cyclical and has the reputation for creating huge violent upside as it did in 2006/7.
The market, funds, Wall street and investors world wide are beginning to take an interested. Cameco, the only large cap publicly traded Uranium company acts a sentiment indicator for the U sector and has recently started to come to life. This was initiated by a court ruling in Cameco's favour to end a longstanding tax dispute with the CRA.
Also S232 has created a lot of exposure to the sector.
Most of the very few Uranium miners and developers publicly tradable have actually been in an uptrend for almost 12 months now.
A common explanation that is used to describe the reason a precious metals bull market is so explosive is that it is like trying to force Niagra Falls through a garden hose. I think it was Rick Rule who recently said the Uranium market is like trying to do the same but through a drinking straw!
There are so many catalysts coming into play right now I personally believe the sector is really starting to take off right now and the rest of this and 2019 are going to surprise a lot of people.
Last but not least it is also my opinion that Energy Fues is one of the very best ways to play this.
**In case anyone noticed I took some of this post from a recent post from MrBogBrush.. MrBogBrush was my temporary ID that I used while I recovered my touarag ID.