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By Jason Simpkins, WealthDaily.com
Uranium stocks are some of the hottest investments on the market today. And for good reason.
Energy demand — especially carbon-free energy demand — is soaring. And renewable sources like solar and wind simply don’t have the juice to meet our fast-growing needs.
Just to give you an idea of the kind of growth we’re talking about…
McKinsey & Co. estimates that the clean energy transition could require an additional 400–800 GW of new nuclear power by 2050, accounting for up to 20% of future global electricity demand.
Meanwhile, the International Atomic Energy Agency (IAEA) says global nuclear energy capacity could increase from 390 gigawatts electric (GW) in 2021 to 873 GW by 2050. That would be more than double the current capacity of 369 GW.
The growing role nuclear power is poised to play in the global energy landscape was further highlighted in December, when more than 20 countries signed a joint declaration to triple nuclear power capacity by 2050, which would add 740 GW of capacity.
And on top of all that, the United States is weighing a potential ban on Russian uranium imports for fairly obvious reasons.
All of those things are bullish for uranium stocks in both the short and long term. And that’s why today, I’m going to show you how to bank triple-digit gains in the uranium sector — something I’ve done twice before.
The Best Uranium Stocks on the Market
If you’re a longtime reader, then you know I’ve been bullish on uranium for more than a decade.
That’s largely because the Fukushima nuclear disaster in 2011 led to a lost decade for the fuel during which prices cratered, making exploration and production uneconomical.
As a result, roughly 85% of uranium miners were wiped out as prices crashed from 2011–2020. Nevertheless, demand for uranium continued to rise, driven by soaring energy consumption and the efficiency and clean-burning nature of nuclear plants.
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Indeed, nuclear power plants produce a huge amount of power at a relatively low cost. And they do so without producing carbon emissions — making them a key piece of the clean energy puzzle.
That’s why I recommended two uranium stocks to readers all the way back in November 2020.
One was Uranium Energy Corp. (NYSE: UEC) and the other was Skyharbour Resources (OTC: SYHBF). We sold both in 2021 for gains of 258% and 311%, respectively.
Since then, Skyharbour — an early-stage explorer and developer — has fallen back down to $0.30 per share, while UEC has continued to climb, currently trading for $6.36 per share.
Now, if I were going to buy back in today, I’d target UEC — a low-cost producer with projects in Texas, Wyoming, Colorado, New Mexico, and Arizona, as well as Canada and Paraguay.
Those properties contain 230 million pounds of measured and indicated uranium oxide and 103 million pounds inferred. That’s up significantly from 58 million pounds measured and indicated and 45 million pounds inferred when I first recommended the stock due to a series of acquisitions in the intervening years.
Additionally, UEC produces uranium at an average cost of $34 per pound — less than half of what it sells for today ($84.75 per pound).
That means UEC is well positioned to profit from higher demand and soaring prices. And since the vast majority of its operations are based in North America, it’s a go-to supplier for American nuclear power companies looking to escape imports from Russia, Kazakhstan, and Uzbekistan.
Still, while UEC’s outlook is bright, and the stock could deliver triple-digit gains in the long term, investors will likely have to be patient.
Indeed, uranium stocks and investments aren’t sneaking up on anyone anymore — certainly not the way they flew under the radar in 2020. As a result, investors looking for big-time gains have to get creative.
That’s why I think the most compelling profit opportunity in uranium stocks currently lies in high-assay low-enriched uranium (HALEU).
HALEU is essentially a more potent form of uranium-235, the main fissile isotope that produces energy. It provides more power at a lower volume.
Whereas traditional uranium is enriched up to 5%, HALEU is enriched up to 20%. As such, a single pellet creates as much energy as 1 ton of coal, 149 gallons of oil, or 17,000 cubic feet of natural gas.
This is obviously key because it makes nuclear reactors even more efficient than they already were. However, it’s also a huge leap forward because it means smaller amounts of fuel can be used to power smaller reactors that can be deployed more easily.
Elon Musk's Chilling Warning for Humanity
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When the richest man in the world issues a warning, it's wise to take notice. And when he issues a warning about his own technology… well, ignore at your peril.; Elon Musk recently warned that humanity will soon be ‘obsolete.' In fact, he went so far as to call what's coming in the months ahead his ‘biggest fear.' What is Musk talking about? Well, if my research is correct, what Elon sees coming is something I'm calling a ‘silent invasion' of America. In short, every port, railroad, highway, and airport in America is facilitating a kind of ‘invasion' that will – according to one leading research firm – bring about centuries worth of change in the next few years. If Elon and the research is correct – the results could be devastating for the average American. But if you know what's coming and you act today – right now – you could preserve your wealth and perhaps even come out ahead with a few key moves. I've laid them all out in a free, short presentation. For the time being, you can access everything you need to know by clicking here. But I suggest you watch it now, because there's no telling when my publisher will take it down. Click here to see why.
P.S. The ‘invasion' I've discovered has nothing to do with the border crisis. What's happening at our southern border is a travesty, but the ‘invasion' I've found will have 10 times greater effects on our economy, and ultimately our way of life. Go here to see why.