Going Nuclear with Justin Huhn and Trevor Hall Why Kuppy Believes this Uranium Cycle Will Go Higher than He Originally Expected
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Jan 28, 2024 Kuppy, CIO of Praetorian Capital and author of Kuppy’s Korner blog, is renowned for his sharp insights into uranium market trends. He shares the fundamental shifts that spurred uranium prices from $18 to $106 per pound, asserting that the move could go even higher but warns of volatility along the way. Kuppy contrasts speculative excitement with the realities of supply chains and urges utilities to act swiftly. He also clarifies how rising prices affect energy budgets, emphasizing that fluctuations are part of the natural market dynamics.
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Uranium Market Cycle
- The uranium market is early in its cycle, overlooked by institutional investors.
- Current price increases are driven by fundamental deficits, not speculation.
Distinct Uranium Markets
- Three distinct uranium markets exist: utility/producer, financial (Sprott/Yellowcake), and junior mining stocks.
- Current "euphoria" is confined to retail investors in junior stocks, while the physical market is driven by fear and a lack of supply.
Navigating Market Volatility
- Understand the cyclical nature of markets; uranium is entering a volatile "gaseous" phase.
- Be prepared for large price swings but don't get shaken out.