The Intrinsic Value Podcast - The Investor’s Podcast Network MI136: The Bull Case for Uranium w/ Justin Huhn
Jan 25, 2022
Justin Huhn, founder of Uranium Insider Pro, dives deep into the uranium market, revealing its potent growth potential linked to supply shortages and rising nuclear energy demand. He discusses the influence of Sprott Physical Uranium Trust on pricing and the paradox of nuclear reactors consuming less uranium than they need. Huhn also shares insights on the cyclical nature of the market and the key indicators he monitors before selling. With unique investment strategies and the future of nuclear energy at stake, this conversation illuminates a vital yet often overlooked sector.
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Uranium's Supply-Demand Dynamics
- Uranium is a slow-reacting commodity with supply and demand imbalances that cause volatile price swings.
- Nuclear energy is gaining support as a green energy source, leading to a potential multi-decade growth in uranium demand.
Sprott Trust's Market Influence
- The Sprott Physical Uranium Trust holds physical uranium and is a safe way to gain exposure to uranium prices.
- They actively issue shares at a premium to buy uranium and hold it indefinitely, influencing the spot market significantly.
Why Utilities Delay Uranium Purchasing
- Nuclear reactors have been buying less uranium than they consume due to abundant cheap uranium supply available historically.
- Utilities have had no incentive to replenish inventories at higher prices until recently when supply shortage looms.