The Big Long
Sprott Asset Management will continue manipulating the Uranium spot market upwards. The previous supply constraint back in 07 and 08 will look like child’s play. If one tenth of GME hype hits the uranium stocks and some bleeds over to the spot market, it will result in a complete meltdown for commodity shorters. In my opinion, with supply constraints and increased demand (partly aided by shorts), there could be not only 10 to 1 returns, not 20 to 1 returns, but 40 to 1 in some names.
Past performance is never indicative of future returns, however, the previous uranium bull market showed solely the supply constraint’s effect on prices. One can extrapolate the higher returns when short interest is added and investor interest is scaled up.
I will show you some charts of uranium stocks in the past 10 years & compare them to today’s breakout run. I will also highlight key differences between then and now, as well as why I believe there is real potential for another run.
$URA (uranium ETF) and others (which I cannot mention) have broken out to 7 year highs. The spot price of uranium mimics both of these charts. They have a symbiotic relationship, like a shark protecting the little fish which eats stuff off of its back. A week ago the spot price of U was less than $28/lb. Today, as of right now, the price shot up to $45/lb. This is a huge factor for the bull case.
In 2007 the spot price of uranium peaked at $135/lb.
That was 10 years ago, and with a quickly increasing spot price, markets were flooded with sells/asks shortly thereafter. The sells were from the heap of new mines which popped up, due to increased demand. When demand tapered off, so did miners.
Now that there are less miners and a huge potential for even more demand soon, I believe uranium is ripe for parabolic movement. This is not financial advice, I could be wrong.
Positions: $URA shares, $20 leaps bought in early feb but still holding, $CCJ shares
The cards are stacked in favor of critical gains my fellow super mutant apes 🦍⚛️🚀☢️
There are no accidents 🐢
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September 15, 2021 at 02:36PM