Dear Reader,
It can't be kept a secret any longer...
The U.S. is transitioning to nuclear power.
And with that transition comes a host of investment opportunities.
The U.S. Senate just passed a bill last week that will support the deployment of nuclear energy. It's already been sent to the president's desk.
According to a recent article from Reuters, "The bill would cut regulatory costs for companies seeking to license advanced nuclear reactor technologies, would create a prize for the successful deployment of next-generation reactors, and would speed licensing for nuclear facilities at certain sites. The bill could benefit companies like Bill Gates-backed TerraPower, which is trying to build a $4 billion Natrium reactor in Wyoming on the site of an old coal plant but is struggling to secure a key permit."
This will be a boon for nuclear energy.
And if you've been reading Wealth Daily from the beginning, you know our most successful calls have been in the energy sector. Our most controversial (at the time) thesis was what we called "peak oil" back in the early 2000s.
You see, in the early 2000s, the last commodities supercycle kicked off, lasting over a decade. Back then, a few key factors drove commodity prices through the roof.
Emerging markets were booming, with countries like China and India rapidly industrializing and urbanizing, driving massive demand for raw materials. These nations started massive infrastructure projects, which drove the prices of steel, copper, oil, and other industrial materials through the roof.
This was when our peak oil thesis came to life. That's because in the 1990s, there were limited investments in new mining projects, but when demand surged, supply couldn't keep up. The idea behind peak oil was the notion of "peak discoveries," which meant that oil companies were no longer discovering giant oil fields. The fields had all been discovered and were well past their peak production rates.
On top of all that, a weaker U.S. dollar made commodities cheaper for foreign buyers, pushing demand even higher.
The price hikes during this period were incredible.
Sam Altman Drops AI Bombshell
Sam Altman is raising the alarm about AI's future... highlighting an urgent energy crisis.
He says, "Powerful new AI models require more energy consumption than previously imagined" and that "there's no way to achieve [the AI future we envision] without a breakthrough".
To combat this, Altman is investing $375 Million into a brand-new technology that's CRITICAL to meeting the escalating power needs of our AI-driven future.
I call it the AI "Master Key"...
And there's one little-known company the US Government is working with to develop this technology essential for America's future energy security.
Find out more about this AI "Master Key" firm here.
Angel Investment Research Founder and President Brian Hicks noted recently that copper prices jumped from around $0.60 per pound in 2000 to over $4 per pound by 2011. Freeport-McMoRan (FCX), a leading copper producer, saw its stock price soar from $10 to over $60. Gold prices climbed from $250 per ounce in 2000 to around $1,900 per ounce by 2011. Barrick Gold (ABX) enjoyed a stock price rise from $10 to over $50. Crude oil prices surged from $20 per barrel in the early 2000s to over $140 per barrel in 2008. Exxon Mobil (XOM) stock rose from $30 to over $90. And iron ore prices increased from $30 per metric ton in 2000 to over $180 per metric ton by 2011. Vale SA (VALE), a major iron ore producer, saw its stock rise from $2 to over $30.
Brian says that we're now entering a new commodities supercycle and that it's just getting started.
Here's why he thinks this bull market is just beginning and why it will last for years:
- Global Rebuilding Efforts: The devastating wars in Ukraine and Palestine have caused massive destruction. Rebuilding these regions will require enormous amounts of raw materials, driving demand for commodities like steel, copper, and concrete.
- Green Energy Transition: The world is shifting toward renewable energy sources. Electric vehicles (EVs), wind turbines, and solar panels need a lot of copper, silver, lithium, cobalt, and other metals.
- Infrastructure Investments: Many countries are investing heavily in upgrading their infrastructure. From bridges to broadband networks, these projects need substantial amounts of raw materials.
- Supply Chain Challenges: The COVID-19 pandemic highlighted vulnerabilities in global supply chains. Companies are now investing to make supply chains more resilient, which will further increase demand for commodities.
We're already seeing the early signs of this supercycle, with gold, silver, and copper all making new highs. Investors are flocking to gold as a hedge against inflation and economic uncertainty. With its dual role as a precious and industrial metal, silver benefits from both investor demand and its use in electronics and solar panels. And the demand for copper is skyrocketing due to its essential role in EVs, renewable energy systems, and infrastructure projects.
However, one commodity that's gone unnoticed in this supercycle is uranium.
But it won't stay that way for long.
Sprott published an article detailing how the price of uranium has increased nearly 90% from this time last year.
The Sprott Uranium Report highlights the significant performance of uranium miners in the market, driven by a strong demand for nuclear energy and a tightening supply of uranium.
Key points from the report include:
- Market Performance: Uranium miners have outperformed other sectors, reflecting the growing interest and investment in nuclear energy as a reliable and clean energy source.
- Supply Constraints: The uranium supply remains constrained due to various factors, including production cuts by major producers and geopolitical issues, leading to higher prices.
- Demand Growth: There is an increasing global demand for uranium, driven by the need for clean energy and the construction of new nuclear reactors, particularly in countries like China and India.
- Investment Opportunities: The report highlights the potential for investment in uranium and uranium miners, suggesting that the sector may continue to perform well given the current market dynamics.
- Future Outlook: The outlook for uranium remains positive, with expectations of continued price increases and strong performance from uranium mining companies as the demand-supply gap widens.
One stock that's been riding the trend in Nano Nuclear Energy (NASDAQ: NNE).
The company makes a portable nuclear microreactor. It's the first publicly traded company of its kind, and it's up over 300% since June.
Some say it's the Nvidia of nuclear energy production.
But like I said above, we're in a commodities supercycle, meaning we need to be investing in the fuel behind this rally.
In fact, American utilities are SCRAMBLING for all the nuclear fuel they can get right now.
And there's only one company in the U.S. with the ability to make it.
It's a little-known firm from the Midwest, and it produces premium fuel for these types of cutting-edge reactors.
As soon as the mainstream grasps the size of this opportunity, expect an investing frenzy to follow.
Stay frosty,
Alexander Boulden
Editor, Wealth Daily
Check us out on YouTube!
After Alexander's passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing.
Alexander is the investment director of Insider Stakeout — a weekly investment advisory service dedicated to tracking the smartest money on the planet so that his readers can achieve life-altering, market-beating returns. He also serves at the managing editor for R.I.C.H. Report, a comprehensive service that uses the highest-quality investment research and strategies that guides its members in growing their wealth on top of preserving it.
Check out his editor's page here.
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