This could be the best buying opportunity in four years
By Andrew Mickey
The 47-month streak is over. Uranium had its first off month in a long while. This past week, uranium experienced the first price decline in almost four years.
Now, if you’ve been riding uranium stocks for the past few years, you know what a great run this has been. Don’t fret, though; all signs point to $200 uranium within a year.
However, when it comes to market sentiment, market makers in the uranium sector are as bearish as ever. Just take a look at what happened to the junior uranium stocks. According to The Australian, “Uran fell more than 15%, Northern Uranium was off 11.4%, Gondwana Resources was down 13.6% and Hodges Resources was off 15.3%.”
Even the big boys were feeling the pain. Shares of uranium producers Paladin Resources and ERA both fell 3% on the news. And all that happened in just one trading day after the news about uranium’s decline in its spot price was released.
Tradetech’s chief executive, Gene Clark, who runs the top uranium industry consulting firm in the world, said, “The long-term market is fine. We still see considerable long-term activity, with no indication of softening prices there. TradeTech’s long-term price indicator remained at US$95/pound.”
So with a quick falloff in uranium stocks like this and solid long-term market fundamentals, we could have a buying opportunity. Clearly, the uranium market was a little overblown, but the long-term prospects are still pretty good. However, you’ll have to be very selective when choosing uranium stocks. The “buy everything uranium” mentality of investors is gone.
On top of that, we’re not going to see too many more 1,000% winners in the uranium sector anymore. The excitement, and more importantly, the big money are starting to move on.
That’s why I’ve developed a uranium insurance policy. The benefits are twofold. If uranium prices rise, this stock goes up; if uranium prices fall, this stock goes up. Either way, it’s a win-win in the uranium sector for this company.
It’s still not too late to take out your own uranium insurance policy and not have to sweat through every Monday, hoping the price of uranium falls again. If it happens one or two more times, it could all come crashing down. Learn more about how to win in uranium, regardless of what happens.
That’s all for now,
Andrew Mickey
Editor in chief, BreakAway Investor
Exploit the Uranium Conspiracy! A high-level U.S. Government cover-up has handed a tiny $12.84 stock a virtual monopoly over a critical uranium enrichment technology. As events unfold, this stock could hit a target price of $57. Here’s how to get in early and ride the next uranium sensation to stunning gains!
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