Today we consider uranium.
Today we consider uranium.

An energy crisis is now looming, largely  
An energy crisis is now looming, largely  

self-inflicted, caused by over reliance  on energy sources that are not reliable.
self-inflicted, caused by over reliance  on energy sources that are not reliable.

Meanwhile, uranium, the key  ingredient to nuclear power,  
Meanwhile, uranium, the key  ingredient to nuclear power,  

has gone through 15 years of underinvestment,  shunned since the bubble of 2006, when another  
has gone through 15 years of underinvestment,  shunned since the bubble of 2006, when another  

looming energy crisis, (around the  Peak Oil narrative) sent it moonwards.
looming energy crisis, (around the  Peak Oil narrative) sent it moonwards.

Now the uranium price, and uranium  stocks, are mushrooming again and,  
Now the uranium price, and uranium  stocks, are mushrooming again and,  

worryingly, uranium is all  over the investment news.
worryingly, uranium is all  over the investment news.

Time to buy? Or to run away?
Time to buy? Or to run away?

Perhaps a bit of both...
Perhaps a bit of both...

Everyone should own some uranium in their  portfolio. The potential is too enormous not to.  
Everyone should own some uranium in their  portfolio. The potential is too enormous not to.  

“Asymmetric bets” and all that.
“Asymmetric bets” and all that.

With the UN’s 2050 Net Zero target and the  UK’s Climate Change Act, we are going to  
With the UN’s 2050 Net Zero target and the  UK’s Climate Change Act, we are going to  

need much more electricity – for heating and for  charging all those millions of electric vehicles.  
need much more electricity – for heating and for  charging all those millions of electric vehicles.  

To meet these targets, the electricity supply  will need to be both dramatically expanded  
To meet these targets, the electricity supply  will need to be both dramatically expanded  

and become much more reliable.
and become much more reliable.

The solution lies in nuclear power. It can  provide huge amounts of reliable, affordable,  
The solution lies in nuclear power. It can  provide huge amounts of reliable, affordable,  

clean and almost infinitely renewable  electricity. It’s such an obvious solution  
clean and almost infinitely renewable  electricity. It’s such an obvious solution  

and investors will want to invest in it – that  investment will enable us to get there quicker.
and investors will want to invest in it – that  investment will enable us to get there quicker.

That is why everyone should own some uranium in  
That is why everyone should own some uranium in  

their portfolio – because of  its silver bullet potential.
their portfolio – because of  its silver bullet potential.

Yet we remain reliant on energy sources  that are far less green, from fossil fuels  
Yet we remain reliant on energy sources  that are far less green, from fossil fuels  

to wind farms and solar, because the energy  debate has been politicised and corrupted,  
to wind farms and solar, because the energy  debate has been politicised and corrupted,  

often by those with their snouts in  the trough of government subsidy,
often by those with their snouts in  the trough of government subsidy,

Anti-nuclear campaigners have  successfully persuaded most of the public,  
Anti-nuclear campaigners have  successfully persuaded most of the public,  

politicians and the media  that nuclear energy is unsafe,  
politicians and the media  that nuclear energy is unsafe,  

despite the fact that it has the best  safety record of any energy technology.
despite the fact that it has the best  safety record of any energy technology.

Environmental concerns, such as waste  disposal, have largely been solved.  
Environmental concerns, such as waste  disposal, have largely been solved.  

Even environmentalists such as James  Lovelock, author of Gaia Theory; Baroness  
Even environmentalists such as James  Lovelock, author of Gaia Theory; Baroness  

Bryony Worthington, a lead author of the Climate  Change Act; and activist Mark Lynas support it.  
Bryony Worthington, a lead author of the Climate  Change Act; and activist Mark Lynas support it.  

But embracing uranium is too politically  toxic for today’s career oriented politicians.
But embracing uranium is too politically  toxic for today’s career oriented politicians.

Because of the anti-nuclear propaganda, regulation  now requires multiple layers of safety in nuclear  
Because of the anti-nuclear propaganda, regulation  now requires multiple layers of safety in nuclear  

plant design. The process is complex, slow,  expensive and cumbersome and so takes years to  
plant design. The process is complex, slow,  expensive and cumbersome and so takes years to  

complete. The long lead time between building and  operation gets even longer and deters investment.  
complete. The long lead time between building and  operation gets even longer and deters investment.  

Many recent proposals for nuclear power  stations in the UK have been abandoned.
Many recent proposals for nuclear power  stations in the UK have been abandoned.

Then an incident such as Fukushima comes along,  
Then an incident such as Fukushima comes along,  

and the adoption of nuclear is  put back another half generation.
and the adoption of nuclear is  put back another half generation.

That is why uranium as investment  is shunned – and doomed.
That is why uranium as investment  is shunned – and doomed.

The time to invest is when no one is  talking about it. Not when everyone is,  
The time to invest is when no one is  talking about it. Not when everyone is,  

such as now, with the spot price spiking.
such as now, with the spot price spiking.

Despite all the current excitement, it’s  not as though there is a sudden rush to  
Despite all the current excitement, it’s  not as though there is a sudden rush to  

build more nuclear reactors (or if there is,  I’ve missed it). There have been many false  
build more nuclear reactors (or if there is,  I’ve missed it). There have been many false  

dawns in the uranium market. There was one in  2020. My concern is that this might be another.
dawns in the uranium market. There was one in  2020. My concern is that this might be another.

The uranium spot price went from around  $7 per pound at the turn of the century  
The uranium spot price went from around  $7 per pound at the turn of the century  

all the way to $140 in 2006. When it moves,  it moves fast. Uranium mining companies went  
all the way to $140 in 2006. When it moves,  it moves fast. Uranium mining companies went  

up by even more than bitcoin. Then the bubble  popped, and everything fell through the floor.
up by even more than bitcoin. Then the bubble  popped, and everything fell through the floor.

By 2010 it looked like a bottom had been found  around the $40 mark and the price rallied to  
By 2010 it looked like a bottom had been found  around the $40 mark and the price rallied to  

$70. It proved to be a suckers’ rally that was  knocked out dead by the Fukushima disaster.  
$70. It proved to be a suckers’ rally that was  knocked out dead by the Fukushima disaster.  

That kicked off another price  decline that went on for years,  
That kicked off another price  decline that went on for years,  

as bear markets do. By mid-2016  we were trading below $20.
as bear markets do. By mid-2016  we were trading below $20.

But since then the price has found  a bottom. It has spent a lot of time  
But since then the price has found  a bottom. It has spent a lot of time  

meandering around the $20  mark. It’s not going to go  
meandering around the $20  mark. It’s not going to go  

any lower than the 2016 lows. That much  is clear. And it has started creeping up.
any lower than the 2016 lows. That much  is clear. And it has started creeping up.

In 2018-19 it ranged around the $25  area. Post-Covid it spiked north of $30,  
In 2018-19 it ranged around the $25  area. Post-Covid it spiked north of $30,  

then came back again to $28. Now suddenly  it has spiked again and we are staring  
then came back again to $28. Now suddenly  it has spiked again and we are staring  

down the barrel of $50. It could almost  triple and we would still only be around  
down the barrel of $50. It could almost  triple and we would still only be around  

the 2006 highs. What happens if it goes  above them? There’s a lot of potential.
the 2006 highs. What happens if it goes  above them? There’s a lot of potential.

One way to play this theme is through uranium  mining companies. But many of the developers don’t  
One way to play this theme is through uranium  mining companies. But many of the developers don’t  

actually do anything. They just sit on assets, and  raise money when the market gets hot. Such as now.  
actually do anything. They just sit on assets, and  raise money when the market gets hot. Such as now.  

They are not going to start building mines  until there is a change in regulation.
They are not going to start building mines  until there is a change in regulation.

That will come eventually but, as I say, I have  seen too many false dawns. Many miners have  
That will come eventually but, as I say, I have  seen too many false dawns. Many miners have  

doubled or tripled in the last couple of months.  They can quickly fall back to where they started.  
doubled or tripled in the last couple of months.  They can quickly fall back to where they started.  

Don’t get FOMO (fear of missing out). Markets  
Don’t get FOMO (fear of missing out). Markets  

reward the patient. If you want to  own uranium developers and explorers,  
reward the patient. If you want to  own uranium developers and explorers,  

and hold out for a re-rating, go for it –  but wait until markets are asleep and boring.
and hold out for a re-rating, go for it –  but wait until markets are asleep and boring.

The safest way to play uranium right now  is through betting on the spot price of the  
The safest way to play uranium right now  is through betting on the spot price of the  

metal itself. It’s less racy, but your risk is  lower. London-listed Yellowcake Plc (LSE: YCA)  
metal itself. It’s less racy, but your risk is  lower. London-listed Yellowcake Plc (LSE: YCA)  

has been set up with this purpose  in mind. It is, basically, a uranium  
has been set up with this purpose  in mind. It is, basically, a uranium  

holding company. You buy the shares and hope that  the value of its uranium stockpiles increases. 
holding company. You buy the shares and hope that  the value of its uranium stockpiles increases. 

Personally, I’d wait. You want to own  
Personally, I’d wait. You want to own  

some uranium in your portfolio.  Nuclear’s potential is enormous.  
some uranium in your portfolio.  Nuclear’s potential is enormous.  

But I’ve seen what happens with uranium  stocks. Fortune favours the patient.
But I’ve seen what happens with uranium  stocks. Fortune favours the patient.

Thanks very much for watching.  Please subscribe to my channel.  
Thanks very much for watching.  Please subscribe to my channel.  

I’ll be back with another video very soon.
I’ll be back with another video very soon.