Over the past
Today, I encourage you to throw another fuel source onto the watch list... uranium. China is making big ripples in this commodity market as well. Here's why...To meet its growing electricity demand, China plans to build 60 new nuclear reactors within the next 10 years. China's high-growth cousin, India, needs 40 new reactors in the next 20 years. That would increase the number of nuclear Power Plants
Looking at the past 10 years in uranium, it's easy to see why China is stockpiling.
Uranium enjoyed a huge rise from 2002 to 2007. This rise attracted a tremendous amount of speculation, which ended badly when it fell from $140 per pound to around $40 per pound. This is a "blown-out" commodity that should get contrarians interested.Here's another reason to be interested: While we have an impending explosion of demand from Asia, the industry's best mine hasn't opened due to calamitous problems, which I told you back in Nov, 2006.According to RBC Capital Markets,
I suggest watching this trend and waiting for a bit of price strength to assert itself. I want to see the train pick up some momentum before getting on board. The 200-day moving average