Daniel says the uranium market took a beating due to a new W.N.A report. The takeaway from that report is that they are showing a deficit for the energy source around 2025. Meanwhile, Daniel sees a 10 to 15 million pound deficit around 2020.
The market is getting very tight and could quickly enter into deficit, he says. Price is unlikely to break to the downside, and increasingly likely to head up. He also notes that a whopping 75% of the industry is not making money against their cash costs right now, and there is not much left to cut.
The Global X Uranium ETF (URA) was trading at $12.81 per share on Monday morning, down $0.09 (-0.70%). Year-to-date, URA has declined -0.47%, versus a 14.77% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Palisade Research.