Monday, January 31, 2011

It's a Bull Market in Uranium! How to Invest in 2011

Read my article How to Play the Uranium Breakout at Hard Assets Investor.

It's a bull market in uranium—again!

Uranium's price was "in the tank" for the longest time, thanks to the massive supply provided by retired Cold War nuclear weapons. That supply started to exhaust early in the last decade, which prompted a uranium moonshot (see chart below).

Like most commodity superfast rallies, this one ended in tears. But uranium has since risen from its radioactive ashes—after forming a "higher low"—and recently broke out to a two-year high:

Breakouts always catch our eye because commodity markets have a tendency to rise much higher and farther than anyone think—which can be very profitable for investors like us.

Should this uranium breakout be bought? And if so, how can you best integrate it in your portfolio?

Higher Demand, Less Cheap Supply

Like crude oil, there's plenty of uranium available to satisfy global demand—if you're willing to pay up, that is. Because like crude, much of the "cheap" uranium, has already been extracted from the earth.

Please read the rest of my 2011 Uranium Investing Analysis here.

1 comment:

d said...

One key in this Uranium breakout is finding some indicators within this commodity and others that give the trained eye an idea of the predictability of the "Higher Low".

I can't stop reading the blog! Great stuff!

Mike Egan
Training in Futures Trading

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