ablation update very bullish, page-13

10% of U.S. Energy Supply Will Disappear In 3 Months -- And Send This Commodity Soaring

Friday, September 20, 2013 02:30PM By Chad Tracy

In the late 1700s, miners in Bohemia (now the Czech Republic) discovered a curious new mineral. They named it pechblende by combining the German word pech which means "pitch" or "bad luck" with the word blende, which means "mineral."

The first scientist to analyze "pitchblende" was a German chemist named Martin Klaproth. By isolating oxides within the mineral, he realized that he had in fact discovered a new element.

Although it was standard at the time for scientists to name such discoveries after themselves, he chose instead to name this new element after the most recently discovered planet at the time -- Uranus.

That is why today, the element we use to power nuclear reactors is known as uranium.

Only a few months from now, a source of uranium that the U.S. has relied upon for 20 years will dry up. Russia will end a 20-year treaty with the United States currently responsible for 10% of our electricity supply.

Since 1993, under a program known as Megatons to Megawatts, 472 megatons of highly enriched Russian uranium have been used to generate electricity in the U.S. This is the equivalent of over 18,000 nuclear warheads.

Nuclear energy currently provides about 20% of the U.S.' energy needs. And once this enormous foreign supply dries up, the 103 U.S. nuclear reactors currently in operation will need to find a new source to keep up with demand.

Commodity investors in particular pay close attention to supply and demand cycles.

In StreetAuthority analyst Dave Forest's latest issue of Junior Resource Advisor, he shared six rules of commodity investing he learned from Warren Buffett. This was Buffett's No. 1 quote:

"We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen ... We have usually made our best purchases when apprehensions about some macro event were at a peak."

The current market for uranium is a perfect example of the kind of opportunity Buffett is talking about.

Without question, the price of uranium is in the dumps. At $34.65 per pound, uranium is selling for its lowest valuations in over five years.