Cameco CCJ Uranium Spike (latest uranium pitch from Doug Casey)

By millionsilver, November 22, 2019

I’m new to this space and I just got a recommendation to invest in Cameco CCJ for the next major rally in uranium.

I read the gumshoe write up from 2017, and there seems to be strong cases to be made for either side (a massive coming rally/ho-hum doldrums for years to come). This is not a resource I know well enough to make informed projections on. If there is a glut of uranium that can be trickled into the market below the cost of production into the foreseeable future, or significantly reduced demand due to environmental concerns and perhaps political correctness. I just read, for example, that Japan has just voted to build solar and wind plants instead of nuclear (which as Jeff Brown argues has a ridiculous ROI compared with nuclear). I don’t know about China and India.

At $9.46 per share, it would be cheap enough to buy and hold, and the leaps look reasonably priced out to 2022. It’s not much of a stretch to conclude that someday in the future there will be another significant rally in uranium. But the question is the timing. Is the probability of an imminent supply shortage likely to happen in the next few years? I’d like to get evidence for both sides of the spectrum.

It seems likely that demand for uranium will increase over time, but the question is how much uranium can be sold into the market below production costs, or might we hit a demand crisis?

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