James Dines Predicts A Buying Panic In Uranium

James Dines Predicts A Buying Panic In Uranium



Over the years, Dines successfully forecast the Internet mania, forecasting the giants of​ the tech boom, and forecasting the tech bust. a​ gold bug again, Dines also added uranium as​ the metal to​ watch over the coming years, saying, “This is​ my way of​ playing the whole coming energy boom."

Interviewer: You have been calling a​ bull market in​ uranium and, once again, you were the first voice in​ the now-growing crowd of​ uranium bulls.

James Dines: What a​ surprise.

Interviewer: Why are you bullish on uranium?

James Dines: It’s very important to​ get into a​ bull market early. The earlier, the better. That’s when the biggest percentage gains are made. That’s why we got into the Internets very early. We got stopped out in​ 2000. We were in​ cash for a​ year and then went to​ metals, as​ the way to​ play the China boom in​ 2018. We’re still in​ those. in​ 2018, we turned bullish on uranium as​ a​ unique way to​ play the coming boom in​ the whole energy complex.

Interviewer: But why uranium, as​ opposed to​ another type of​ metal?

James Dines: Basically, the western world demand is​ outpacing supply by about 300 million pounds a​ year. Global uranium use, excluding the growing usage by China and the former Soviet Union, is​ running at​ around 155 million pounds a​ year, as​ compared with global production of​ only around 94 million pounds. There are only about 500 customers for this stuff, not counting terrorists (joke). Because of​ that, it’s not a​ regular commodity. The public can’t go and buy uranium. in​ August 2018, there was a​ shocking blackout in​ Canada. The utilities were shaken. They realized when they don’t pay attention, the lights go out. That was a​ kick in​ the shin for utilities to​ begin immediate investment in​ the infrastructure of​ the electricity grid. But what is​ completely under the world’s radar is​ that nuclear plants are also concerned about a​ shortage of​ uranium. if​ they run out of​ uranium, the lights go out. You can’t switch to​ another fuel. You can’t toss another log on the fire, so to​ speak. Because of​ that, there is​ a​ growing panic among the buyers. That’s why I became what I’m calling myself: The Original Uranium Bug. And calling, or​ predicting, the coming Uranium Melt Up and buying panic.

Interviewer: a​ panic over uranium. Why do you say that?

James Dines: There’s going to​ be a​ buying panic. The bottom line is​ that in​ 2018, there were 441 nuclear reactors worldwide and another 34 under construction. Six new reactors began commercial production in​ 2018, three in​ China, two in​ South Korea and one in​ Japan. There was construction begun on six reactors in​ India and four in​ South Korea. There are more units coming in​ Finland, Russia, Ukraine, Romania, and Brazil. China announced recently they were going to​ build five more nuclear facilities. All of​ the governments of​ the world have been frightened by the talk of​ the difficulty in​ getting oil. I wouldn’t be surprised if​ more of​ them began building up their strategic oil reserves as​ the US has done. That would turbo the whole carbon-based fuel crisis higher. That makes nuclear more than a​ competitor. The price of​ uranium hit $7.10 on Christmas Day 2000, and then began a​ low, quiet and slow climb. The bottom line, which I outlined in​ my book on Mass Psychology, is​ that a​ new bull market must be invisible to​ the crowd. The corollary to​ that is​ when you see bandwagon on Wall Street, you are too late.

Interviewer: Some are making predictions of​ $50 uranium or​ even higher. What do you think?

James Dines: $50, $60, anything is​ possible. if​ you are running a​ utility and your choice was getting uranium at​ any price or​ having the lights go out, which would you do? This is​ my way of​ playing the whole coming energy boom. I think it’s the smartest way. This is​ unique. This metal is​ just not there. We’re just not going to​ have it.

Interviewer: How much of​ a​ role does Cameco (NYSE: CCJ) play in​ this market?

James Dines: They control the world’s largest high-grade reserves and low-cost operations, commanding position. They supply around 20 percent of​ the western world’s uranium. It’s America’s only uranium producer, in​ Wyoming and Nebraska. Around 20 percent of​ America’s energy is​ produced by nuclear. That accounts for around 35 percent of​ the western world’s consumption.

Interviewer: is​ there any other way to​ play the uranium bull market?

James Dines: There is​ no other way to​ play it, as​ far I know of. The utilities buy the stuff so you can’t buy the metal. There is​ no other way. That’s why I like the uranium way of​ playing the energy boom. Some of​ my other predictions, like the Coming Age of​ the End of​ Petroleum – this century is​ going to​ see the end of​ the petroleum age. We’re going to​ use it​ up. You have China and India coming onstream. You’ve got the automobile age coming to​ those two countries. Not even one percent of​ their citizens own cars yet. With all these cars coming onstream, suddenly everyone is​ frightened about nailing down their petroleum supplies. I don’t have to​ tell you how explosive the Middle East could be. Anything could happen there. a​ revolution in​ Saudi Arabia – the most valuable real estate on the planet and it’s being gunned after by not just Al Qaedah, but every other big player on the land mass is​ saying, we need oil. That’s where the pool is. as​ that pool shrinks, it’s going to​ become more and more valuable. There will be more of​ a​ stampede into other energy sources. You already see it​ going into coal and natural gas. Unless they’re going to​ start putting windmills on cars, it’s over. When it​ will end, who knows?

Interviewer: Any guesses?

James Dines: You hear all kinds of​ guesses. There were only so many dinosaurs and ferns. It’s finite, and it​ is​ dirt cheap. People snivel at​ $1.67 for gasoline, but they pay $10/gallon for Gatorade. White-out is​ $25/gallon. Evian is​ $21/gallon. Pepto-Bismol is​ $123/gallon. People have no concept of​ how high oil is​ going to​ go. Oil is​ going to​ go through the roof. a​ sound energy portfolio should certainly include some oils. But to​ me, the center of​ the chessboard is​ going to​ be uranium. It’s going to​ get a​ lot worse before it​ gets better. Once you start getting sky-high prices for oil, there’s no limit to​ what uranium could do. Even with an​ accelerated drilling program, it’s going to​ take years to​ bring it​ on. And they haven’t even started it​ yet. There’s an​ energy crisis coming of​ the first magnitude.
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James Dines, editor of​ The Dines Letter since 1960, has been making recommendations to​ investors for over 40 years. Recommendations of​ The Dines Letter are based on mass psychology, technical and fundamental economics thus studying both the company and investor behavior. Mr. Dines' insights have gained him a​ reputation as​ a​ well-renowned, highly respected and regarded investment advisor.




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