Traders Could Find 100% Returns in This Natural Resource

Over the next couple years, you could make low-risk, triple-digit gains in one of the most beaten-down commodity sectors in the world: uranium.

 

It won't happen overnight. But as I'll show you today, a big bull market in uranium is almost inevitable.  

 

The price simply will not stay as low as it is today. And before the run is over, we'll see prices double... or more.

 

Let me explain... 

 

Right now, the spot price of uranium is so low, miners are losing big money selling the stuff.  

 

You see, it's not cheap or easy to pull uranium out of the ground. The mining costs alone are $85 per pound. Once you add in other expenses, it gets worse. As I told DailyWealth readers last month, the world's largest uranium producers are spending an average $106 per pound.  

 

Areva, for example, produces 16% of the world's uranium. In 2011, it produced 23 million pounds of uranium... and spent almost $163 per pound doing so. That was, by far, the highest price I found among major uranium producers. But none of the numbers looked good.  

 

Uranium spot prices are around $40 per pound. Long-term contracts might pay $65-$70 a pound. Areva is losing about $100 on every pound it sells. That's a great way to go out of business.  

 

And that's exactly why this situation won't last. (more)

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