Investment expert reveals his favourite commodity for 2013 and how you can profit from it
Fsp Invest, 04 Jul. 2013
“I, like many other analysts believe there are big bucks to be made in the mining sector this year. And right now, there’s a host of commodities and mining companies to trade in. But the question is which will be the best performing commodity for 2013? My bet’s on uranium,” says Francois Joubert, Chief Investment Strategist behind The Resource And Scarcity Report. Here are two reasons why Joubert believes we’ll see the uranium price soar this year…
While uranium mining and nuclear energy continue to be debatable issues all over the world, uranium still provides a perfect investment opportunity. And that’s why Joubert believes we’ll see the price of uranium double when the supply crunch hits this year.
“When you look at past moves uranium has made, you’ll see the metal makes fast, sharp moves either up or down. The reason for this is that the uranium market is illiquid. Only a small number of transactions take place every week, and when a uranium consumer realises there’s a supply crunch coming he’ll pay any price necessary just to secure his supply. And that’s when you see prices spike as they did in 2006,” says Joubert.
However, Joubert believes there will be certain factors that’ll act as uranium price catalysts this year.
Two reasons why Joubert believes we’ll see the uranium price soar this year
1. The United States of America (USA) is about to lose half of its uranium supply. 50% of the electricity from nuclear plants in the U.S is currently from uranium recovered from Russian nuclear warheads. But Russia’s supply of warheads is running out, and the supply agreement is ending this year. That means the U.S will need a massive new supply of uranium to power its nuclear plants, explains Joubert.
“I expect this to be a major driver behind the uranium price, especially during the second half of 2013,” says Joubert.
2. Nuclear plants are being built again in China. “Following the Fukushima event, China put a ban on the building of new nuclear plants next to its coastline, until it’s able to determine safety requirements. At the end of October last year China announced that it’s lifting the ban on building new nuclear power plants. China is currently building 26 new nuclear power plants and this number is expected to grow,” says Joubert.
Here’s how you can profit from uranium
As an investor, you can put yourself at an advantage and profit from Joubert’s top commodity for this year by buying into companies that are making a lot of money off uranium sales.
“We have a few options here in South Africa, DRD Gold for instance is currently preparing to build a uranium extraction plant to complement its gold extraction facilities. This’ll add great revenue to DRD’s bottom line when it comes online,” says Joubert.
“Then there’s also the gold miner, Gold One that has large uranium reserves, which it acquired with its Rand Uranium assets,” concludes Joubert.
Now that you’re aware of what this resource expert believes will be the top commodity for 2013, you can take advantage and profit from it.
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