Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20
China Under Reporting Coronavirus COVID-19 Infections, Africa and South America Hidden Outbreaks - 12th Feb 20
Will USD X Decline About to Trigger Precious Metals Rally - 12th Feb 20
Copper Market is a Coiled Spring - 12th Feb 20
Dow Theory Stock Market Warning from the Utilities Index - 12th Feb 20
How to Get Virgin Media Engineers to FIX Hub 3.0 Problems and NOT BS Customers - 12th Feb 20
China Under Reporting Coronavirus COVID-19 Infections by 66% Due to Capacity Constraints - 12th Feb 20
Is Coronavirus the Black Swan That Takes Gold To-Da-Moon? - 12th Feb 20
Stock Market 2020 – A Close Look At What To Expect - 12th Feb 20
IBM AI Mega-trend Tech Stocks Investing 2020 - 11th Feb 20
The US Dollar’s Subtle Message for Gold - 11th Feb 20
What All To Do Before Opening A Bank Account For Your Business - 11th Feb 20
How and When to Enter Day Trades & Swing Trade For Maximum Gains - 11th Feb 20
The Great Stock Market Dichotomy - 11th Feb 20
Stock Market Sector Rotation Should Peak Within 60+ Days – Part II - 11th Feb 20
CoronaVirus Pandemic Stocks Bear Market Risk 2020? - Video - 11th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Uranium Boom set to continue for Decades

Commodities / Investing Feb 26, 2007 - 12:25 AM GMT

By: Elliot_H_Gue

Commodities Once or twice every century, investment opportunities come along that, if understood and acted upon, create incredible riches.

Maybe this is the year you take that once-in-a-lifetime cruise, or you're paying tuition for a child or grandchild. Perhaps you simply want the peace of mind and security that comes with having bundles of money in the bank. Whatever your personal investment objectives, think "URANIUM".

A fundamental understanding of uranium will likely prove to be the single most profitable way to protect and grow your nest egg in the years ahead. Investors who truly grasp the famous Wall Street adage "don't fight the chart" have an opportunity to get in on the ground floor of what will likely be the most impressive secular bull market of the 21st century.


Charles Steen was born in Caddo, Texas in 1919. He went on to study at John Tarleton Agricultural College in Stephenville and in 1940 transferred to the Texas College of Mines and Metallurgy at El Paso, receiving a bachelor's degree in geology in 1943. Ineligible for the draft because of his poor eyesight, Steen spent World War II working as a geologist in Bolivia and Peru. Returning to the US in 1945, he married and took a job doing field work for the Standard Oil Company of Indiana.

Down on his luck after losing his job, Steen read an article in the December 1949 issue of the Engineering and Mining Journal which discussed how the US federal government had issued incentives for prospectors to locate domestic supplies of uranium.

As part of the Atomic Energy Act of 1946, the US Atomic Energy Commission had the authority to withdraw lands from the private sector in order to examine them as possible sites for uranium mining. During World War II, the Manhattan Project received most of its uranium from foreign sources in Canada and the Belgian Congo. However, it also received some from vanadium miners in the American Southwest, where uranium was often a by-product of mining (before the first use of the atomic bomb, uranium wasn't seen as a terribly valuable metal).

As the Soviet Union was reportedly seizing uranium mines in Czechoslovakia and East Germany at the beginning of the Cold War and running them with slave labor consisting of political prisoners, there was anxiety throughout the federal government that the US wouldn't have enough uranium for its budding nuclear weapons program. A domestic supply of uranium would enable the government to maintain a nuclear self-sufficiency, with control of all aspects of the nuclear fuel cycle.

Despite the fact that his three sons were all less than four-years-old, and his wife was expecting a fourth child, Steen borrowed $1,000 from his mother and headed for the Colorado Plateau, determined to strike it rich. He couldn't afford the standard equipment used by uranium prospectors such as the Geiger counter, which could detect sources of radiation in ore. Instead, he used a secondhand diamond drill rig and his geologic training for his prospecting.

At the time, each individual prospector had his own idiosyncratic theory on where to find uranium. The uranium industry was composed primarily of individual prospectors and geologists who would attempt to find a large claim and either mine it for themselves or mine it for a large company (such as Union Carbide) which would then transport the ore from the mine to the uranium mill where it could be converted into yellowcake. Steen's theory on uranium deposits was that they would collect in anticlinal structures in the same manner as would oil, which others on the Plateau dismissed as "Steen's folly."

After Steen's fourth child was born, he moved his family into a small trailer at Dove Creek, Colorado, and then later into a tarpaper shack near Cisco, Utah. He fed them on poached venison and cereal—it was a highly marginalized state of existence that lasted for two years. But on July 6, 1952, Steen hit it big—he found a massive, relatively highly-enriched uranium deposit in the Big Indian Wash of Lisbon Valley, southeast of Moab, Utah. He named it the "Mi Vida" mine (My Life), and it was the first big strike of the uranium boom. Steen made millions off his claims, and provoked a "uranium rush" of prospectors into the Four Corners region, similar to the Gold Rush of the 1850s in California.

In Moab, Steen built a $250,000 hilltop mansion to replace his tarpaper shack, with a swimming pool, greenhouse and servants'quarters. He formed a number of companies to continue his uranium work, including the Utex Exploration Co, Moab Drilling Co, Mi Vida Co, Big Indian Mines and Uranium Reduction Co.

He made his wealth known by inviting the entire population of Moab to annual parties in a local airport hangar, having his original worn prospecting boots bronzed and flying to Salt Lake City in his private plane for weekly Rumba lessons. In his later years, Steen was elected to the Utah State Senate and became a philanthropist, donating money for a new hospital in Moab and giving land for churches and schools.

URANIUM BOOM II

The first Western uranium boom answered a call in 1948 for domestic uranium stockpiles for atomic bombs, making millionaires and overnight towns.

Now, suddenly, nuclear power is back in demand as a relatively cheap, reliable and emissions-free solution to the world's insatiable demand for energy. Even some leading environmentalists have endorsed nuclear power as an antidote to global warming. More than 50 nuclear plants are planned or under construction in a dozen countries, according to US and international nuclear agencies.

The nuclear comeback has reinvigorated a North American mining industry that, during the 1950s, was the stuff of legends. Uranium claims--which grant an exclusive right to mine a piece of federal land--were bought and sold like stock.

The federal government dumped its uranium stocks on the market, depressing the price in the early 1980s. After bottoming out at $7 in 2001, the spot price for milled uranium yellowcake has jumped sharply to $72 a pound.

The Nuclear Regulatory Commission says US utilities are looking at building as many as 27 reactors, and it just licensed a $1.5 billion uranium enrichment plant near Eunice, New Mexico, where a groundbreaking ceremony was held in August.

Louisiana Energy Services, a subsidiary of Urenco, is building the first US installation that will use modern centrifuge technology. USEC, formerly the United States Enrichment Corporation and an arm of the federal government until 1998, operates a gaseous diffusion plant in Paducah, Kentucky, where pumps and filters separate lighter uranium atoms from heavier atoms in a slower, more power-intensive process.

The nation's 103 operating nuclear power plants already are operating on dwindling stockpiles of uranium--some of it converted from Russian bombs--while energy-hungry China and India are rushing to build their own nuclear power plants.

Uranium concentrate is in short supply, with world consumption of 180 million pounds outpacing annual production of 100 million pounds, according to industry and government estimates. For now, the difference is being made up by dwindling stockpiles--and the shortage is expected to get worse as new plants come online.

US utilities looking at building or adding reactors are motivated partly by the escalating cost of natural gas, and partly by fears the government may tax coal-fired plants for the carbon emissions they release into the air.

Outside of the US, the Nuclear Energy Institute says 27 nuclear plants are under construction in 11 other countries, adding to the world's 442 nuclear plants.

Federal policy, meanwhile, is changing to expedite development of nuclear power.

The Nuclear Regulatory Commission is streamlining licensing and operating approvals for a standardized--and vastly improved--new generation of reactors. The Energy Act of 2005 offered loan guarantees, production tax credits and partial reimbursement against regulatory delays for builders of nuclear plants.

The Bottom Line: Uranium investments are poised to explode. Now is the time to position your portfolio accordingly, and reap a financial windfall.

By Elliott H. Gue

The Energy Letter

Elliott H. Gue is editor of The Energy Letter , a bi-weekly e-letter as well as editor of The Energy Strategist , a premium bi-weekly newsletter on the energy markets. Mr. Gue is also associate editor for Personal Finance , where he contributes his knowledge of the energy markets.

Mr. Gue has a Master's of Finance degree from the University of London and a Bachelor of Science degree in Economics and Management from the University of London , graduating in the top 3 percent of his class. Mr. Gue was the first American student to ever complete a full degree at that university.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

John_York
26 Feb 07, 17:19
Re: Uranium Boom set to continue for Decades
I had originally ignored the uranium story as being much about hype over nothing, but after watching the market and commentary develop over several months, I am becoming a convert to the uranium being the future 'precious' metal.

How high could it go ? I do not know but its one definetly I need to become invested in. Thanks to folks such as Elliott for bringing it to my and others attention !

Cheers ! :)

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules