Thread by @hendry_hugh

A lot of you are invested in uranium. I commend you. I wish I was.

Uranium is the rockstar of commodities. It doesn't mess around - bull and bear markets are of epic proportions.

The 1970s peak of $42 slumped to $10 where it stayed a long time before our generation's exuberance, and the helping hand of necessity, took it to $80 - something better than great sex ?? you made 50x your money in some of the spec junior miners...50x!!

Of course, gravity and leverage intervened once more and sent the price crashing back to $20...Fukushima, anyone? A nomen is certainly an omen...

But the patient rarely dies. The principal draw remains that governments around the world have committed themselves to v ambitious emission targets and the battery technology for storing wind and solar energy remains a challenge.

And so, the cheap emission free base load energy, that the nuclear sector provides to the national grid, remains simply irresistible for the moment.

I'm a bit sketchy on detail but I think 40pc of production is mothballed including the massive Canadian mine I visited back in the day.

Spot is still way below the incentive to reopen never mind break fresh ground and meeting demand today is now consuming the notorious stockpiles which have historically acted like a brick attached to a rubber band.

Just as you inhaled the bullish fumes - Boom! those dastardly inventories got sold on the open market.

I don’t know the catalyst for why such stocks are exploding higher this week except that the stock market had been sending positive vibes for a while now - an emerging trend is evident.

If you recall, my strategy is always to take a small opening position in these bear markets stocks that don’t make new lows and sit neglected for years. Huge price action can take place

Monday was really a « no news » news day when it was claimed that the retirement of certain nuclear power stations in the US had been delayed... and Boom! Cameco - the largest listed producer of yellowcake - was up 18pc on the day. Welcome to the uranium bull market.

You want some data points? Ask a pro but as far as i can determine, mine supply is running at 120m v`s demand of 180m. Remember the danger from those dastardly stockpiles? Well, that rubber band moves both ways...

At this stage you want to own the uranium pyramid, i.e., the safest, Cameco, the riskiest, the juniors...and then you gotta treat yourself to a royalty co.

They typically benefit from all the price upside if they are contractually smart and got an eye for a good asset without being burdened by the mundane issue of mine cost pressures. Normally you pay for this advantage but down here you can’t be paying much

I wish I had the cash to invest - cue v small violins - but please remember this is not financial advice but rather my eclectic thoughts sitting in the harbour of Gustavia sipping a coffee. I’m an entertainer not an investor.

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