“A nuclear holocaust like no other.”
That’s what President Trump said in his first press conference to the nation, regarding a question about Russia. He opined that we should have a strong relationship with Russia in order to avoid such a ghastly scenario.
“You know what uranium is, right? It’s this thing called nuclear weapons. And other things…”
Other things…
He’s right, uranium is required for a lot of other things actually: first and foremost, nuclear power.
Now, while “nuclear” has a lot of terrible connotations — like the aforementioned “nuclear holocaust” — in reality, it is the safest energy source available.
Here’s why uranium may be one of your best investment bets of the Trump presidency…
Regardless of your opinions on nuclear power, there are a few striking facts that you — as an investor — simply cannot ignore. In short, the energy created from nuclear power is nothing short of astounding:
- 20% of U.S. energy production runs on uranium
- Around 10% of global power runs on uranium
- It’s cleaner than coal and natural gas
It’s also one of the safest energy sources the world has ever seen — despite a few high-profile disasters. Three Mile Island in 1979, Chernobyl in 1986, and Fukushima in 2011 have all rightfully struck fear into people. Nobody wants to witness a nuclear power plant meltdown — it’s one of the most terrifyingly helpless accidents you can ever imagine.
However, all energy sources are prone to accidents. Just because nuclear accidents happen dramatically on the world’s stage, that doesn’t mean it is actually more dangerous than other ways of keeping the lights on…
In reality, it is perhaps the safest energy source of the big three. For example, for every person killed by nuclear power 4,000 die from coal.
Author Seth Godin lays it out on his website:
Vivid is not the same as true. It’s far easier to amplify sudden and horrible outcomes than it is to talk about the slow, grinding reality of day to day strife. That’s just human nature. Not included in this chart are deaths due to global political instability involving oil fields, deaths from coastal flooding and deaths due to environmental impacts yet unmeasured, all of which skew it even more if you think about it.
His chart lays it out pretty clearly…
The point being, regardless of the hysteria that nuclear power creates, we’re going to need it. And developments right now will make uranium investing a no-brainer…
Here’s why uranium may be one of your best investment bets of the Trump presidency…
The last time uranium was this cheap, it gave birth to one of the biggest bull markets the world has ever seen. Almost every uranium producer ran up triple digits. Once more projects start coming online, we may see the same thing happen again.
Obviously, if the U.S. starts cranking up new reactors that would be a huge boon for uranium stocks. A Trump presidency bodes well for that scenario. But I’m betting on more than the Trump effect.
Globally the world is starting to see more reactors coming online. The Nuclear Energy Institute notes that there are 60 nuclear units under construction right now, in over a dozen countries around the world. Most of these projects are slated to begin operations by 2025. The NEI also reported that over 160 more are now in advanced planning.
These are complex operations for sure. But I think that as more of these projects are completed, the demand for uranium will rise in tandem.
That’s why I invested in the Global X Uranium ETF (NYSE: URA) for the coming boom. The ETF is up 15% this year…
And it will keep running.
Here are its holdings:
Company |
Symbol |
% Assets |
---|---|---|
Cameco Corp |
CCJ |
21.12% |
NexGen Energy Ltd |
NXGEF |
12.47% |
Uranium Participation Corp |
URPTF |
6.07% |
Uranium Energy Corp |
UEC |
5.94% |
Denison Mines Corp |
DNN |
5.66% |
CGN Mining Co Ltd |
1164.HK |
5.25% |
Berkeley Energia Ltd |
BKLRF |
4.17% |
Fission Uranium Corp |
FCUUF |
3.90% |
Ur-Energy Inc |
URG |
3.73% |
CGN Power Co Ltd |
94C.F |
3.40 |
I’d urge you to start staking a position for the next few years. But don’t take my word for it…
There are plenty of other wealthy people who have bet on uranium prices rising in the coming years:
- Bill Gates has $35 million invested
- Jeff Bezos, founder of Amazon and owner of the Washington Post, has invested $19.5 million
- George Soros has invested a massive $126 million
- Peter Thiel — founder of PayPal and early investor in the legal cannabis industry — has thrown in $2 million. He’s also a close economic advisor to Trump
When all of the richest people — from both sides of the aisle — are investing in something, I start taking notice. Regardless of your political leanings, I would seriously start taking note of this new windfall.
Now, you’ll make out great on a simple ETF like URA. These are the biggest, most solid plays in the sector. But if you’d rather take triple-digit gains, I’ll have to refer you to Nick Hodge.
Nick has been traveling the world for the last decade in search of the next huge uranium play. He’s finally narrowed the field down to his single best stock. Of all of the uranium companies he’s visited, he’s actually betting his fortune on this one…
This company is sitting on one of the purest, shallowest, most valuable uranium deposits America has ever seen. And it’s only recently been uncovered.