I’ve heard from long-suffering uranium speculators who’ve given up hope of any help from Donald Trump for the uranium market. The president’s Nuclear Fuel Working Group (NFWG) was supposed to report last October, then November… and now December is almost gone with no official word.
I understand the frustration.
But Trump doesn’t care how long speculators have to wait. Remember that he didn’t start the Section 232 process that resulted in the Department of Commerce recommending that the US boost domestic uranium production. And he does have a few other things on his mind, including impeachment.
This is why, in my last update on uranium, I wrote:
“It’s possible that absolutely nothing happens on the uranium front next week—or in the next months…”
Everything else I said then remains true, however, including that the NFWG was under no legal obligation to issue a press release on its report.
What’s different now is that we now have leaks in the press on the NFWG report. It seems the report does indeed recommended that Trump order US agencies to buy more uranium from domestic sources.
We also have reports that the US army is building its own rare-earths processing facility to ensure US supply of some of these vital metals. This has no direct bearing on uranium, but it does show that the Trump administration is indeed willing to act to secure domestic supplies of vital minerals—which uranium definitely is.
In short, despite our frustration, there’s nothing wrong with the uranium thesis so many of us have been speculating on.
That thesis was never that we’d become millionaires overnight when Trump took action to support US uranium producers. It was that uranium prices have to go up if large parts of the world aren’t going to go dark in the years ahead—and Trump might provide a tailwind.
Nothing has changed, except the higher levels of exasperation and despair in the Get-Rich-Quick crowd.
And as much as we’d all rather hear that we have a big win today than more buying opportunities, Mr. Market doesn’t care what we want.
As speculators, we must play the cards we’re dealt, not the ones we wish we had.
And so I have.
I just bought a uranium stock that was so beaten down, it could easily double or triple simply on rebounding uranium prices—and if their drilling hits what the company is looking for, it’s got 10-bagger potential, or more.
This is my biggest “swing for the bleachers” spec today.
Of course, I welcome you to subscribe to The Independent Speculator to see what I’m putting my own hard-earned money into.
My point today is that I’m not just making reassuring sounds that all will end well for uranium speculators. In truth, it may not—which I’ve said all along.
But I believe my thesis and I’ve put my money where my keyboard is.
That’s my take,
Monday, December 23, 1:24pm, EST, 2019