The China-Driven Fuel Shortage 139 Times Bigger Than Oil...
China's creating a pandemic shortage of this essential fuel so severe that spot prices have already doubled and suppliers are scrambling to get "online." And yet, China's about to increase imports by 1,761% to support the "largest buildout" in the history of energy...
How will they do it? The solution lies with one company...
Investors who act now could make 212% by April 19...
Dear Reader,
China's at it again... Yet this time, the profit potential is bigger and "longer" than any commodity run-up in its 30-year growth explosion...
Right now, China's creating a fuel crisis that dwarfs the great oil shortage of the 1970s. It already exceeds the demand for oil by 139 times. And few investors know - or even understand - the size and scope of this opportunity.
But take notice: The supply of this fuel is so short that worldwide prices have already doubled in 12 months - and are soaring higher by the day.
According to a confidential report from a top Merrill Lynch analyst, the global gap between supply and demand of this precious fuel is already a whopping 15 million pounds - nearly 20% below worldwide demand .
And this shortfall is expected to double in the coming months - with no end in sight . In fact, the demand is growing so fast, that the supply chain may never catch up, for reasons I'll explain in a moment...
For investors, this pandemic shortage - and China's unrelenting demand - could well bring the biggest financial boom in more than three generations, when oil started its great industrial run and turned every $1,000 invested into $1.26 million .
Right now, the greatest fuel shortage of our times is taking hold... And getting filthy rich has rarely - if ever - been this predictable, for those who know how to judge it... Investors are looking at 10-, 20-, even 30-to-one gains.
Imagine taking a $10,000 investment and watching it balloon to $300,000 in less than three years...
Or a $50,000 investment and watching it explode to upwards of $2 million over the same time period.
It's because the supply gap of this fuel is one of the biggest of all gaps in history, dwarfing every other commodity.
If you doubt for a second how significant this gap is, just look at the past two years of China-driven mega profits...
China's insatiable demand for steel caused the prices to double... and investors made 553% on Mittal Steel Company in 13 months... China's demand for copper pushed Phelps-Dodge, the world's largest miner, up 253% in 16 months. China's unquenchable thirst for oil drained supply from OPEC and pushed prices up by 63%... Investors in Valero Energy, the nation's largest refinery, made a tidy 431% in 24 months. China's demand for concrete pushed prices up and investors in Cemex S.A., one of the largest concrete suppliers in the world, made a cool 143% in 21 months. China demanded coal, and those who got in ahead of the soaring demand made 268% on Fording Canadian Coal. China demanded aluminum to supply its soaring appliance and auto factories ... and Empire Resources lit up 1,257%... Investors worldwide are kicking themselves now for not getting in on these mega-profit deals when they had the chance... even though it was clear at the time that supply gaps were pushing prices to historic highs.
Getting in on even one of these deals had the power to change the financial fortunes of anyone with the desire to do so...
"Déjà Vu All Over Again"... Only This Time, the Profits Are Bigger
China's demand for this precious commodity is increasing dramatically. Consider these facts:
Imports of this commodity to China are due to increase from 2.5 million pounds per year to a staggering 44 million pounds per year, according to the Australian Foreign Ministry, with whom China's been negotiating. That's an increase of 1,760%... And it equals nearly one-quarter of the world's total supply of this fuel. In 2005, the Chinese government spent roughly $72 million dollars on this fuel. But according to current government estimates, China is about to increase that expenditure to a whopping $119 billion in the months ahead... All the while, the worldwide shortage has already pushed spot prices up more than 100% in 12 short months... 200% in 28 months. And the trend is just now gaining strength...
In this report, I'm going tell you exactly what this fuel is, and show how and why it could well be the most important investment to come along in 55 years, when oil started its historic run, making millionaires of anyone with a $1,000 bucks.
More importantly, I'm going to show you how one company - a long-term trading partner with China - is about to become China's biggest supplier of this precious fuel... And why it recently spent $7.2 billion to lock up the deal...
The Wall Street Journal , no less, says that this company is about to be "in the same league as Microsoft Corporation," which turned every $10,000 invested at the onset into more than $6.1 million.
Most importantly, you'll learn everything you need to know to take advantage of this play immediately, before the big institutional money starts piling on, pushing the price to elevated levels and stealing your profits...
But take heed ... getting in before China spikes demand of this fuel will make the difference between living your financial dream for years to come... or simply watching a few savvy others line their pockets with Exxon-sized windfalls.
This Fuel Boom Is Here, The Time Is Now...
The fuel shortage that has a few savvy investors licking their chops is the material used to power nuclear reactors - uranium .
Investors who know how to judge this precious commodity are about to cap 212% in the next 30 to 60 days on an energy deal set to top $119 billion... And, as I'm about to show you, it could well double your money every year thereafter as the money flow increases... It's an energy play that rivals even the great oil run-up... only faster.
And the reason for this is simple... Right now, nuclear energy is on a historic tear that few investors are aware of. It's driving up uranium to unprecedented highs, above $33 per pound for the raw, unprocessed ore mined from the ground (it was just $10.10, 24 months ago). A look at the facts shows how widespread and growing this nuclear boom is. Just consider that...
Bush's Nuclear Deals Deplete Even More Uranium
USA Today reports that President Bush signed into law this past August energy legislation that encourages new reactor development in the U.S., with tax credits, federal risk insurance and loan guarantees.
It's no secret that the U.S., along with the rest of the world, is ramping up it's nuclear power capability.
In addition, President Bush signed a historic deal with India in September 2005. The agreement set up parameters for civilian nuclear co-operation between the two countries. The deal is estimated to put India in a 3-million pound deficit of uranium in the coming months.
Nuclear energy now supplies 16% of the world's total power. In addition to the boom in China (BusinessWeek calls it the "largest buildout" in the history of energy), 23 new nuclear reactors are under construction in 10 countries. A whopping 441 power plants in 36 countries now depend on uranium to run steel plants, auto assembly lines, mass transportation, and thousands of factories that make everything from women's dresses to bobble-head dolls. Nuclear power now heats, lights and cools an estimated 350 million homes and businesses worldwide, powering computers, bank transactions, telecommunications - and even a third of the all schools in Europe and the industrialized nations. 15 reactors in the U.S. alone have been granted license to extend their operating lives from 40 to 60 years... And most others are expected to apply for the same extension. What's more, the environmental groups are embracing uranium as a clean, economical and sustainable alternative to burning fossil fuels... "Nuclear energy is the only non-greenhouse gas-emitting power source that can effectively replace fossil fuels and satisfy global demand."
- Greenpeace founder Patrick Moore
USA Today reports that: "Nuclear power creates virtually none of the pollution that causes climate change and delivers electricity cheaper than other forms of generation do. If more reliable and cleaner energy is the goal, nuclear power has to be part of the solution."
In America alone, nuclear power has reduced the emission of greenhouse gasses by 128 trillion tons per year... It's saved 1.6 billion tons of carbon dioxide worldwide in 2005... And it's kept 90,000 tons of toxic heavy metals - the byproduct of burning coal for electricity - out of the air.
It's no surprise that nuclear energy is streaking skyward, driven by sky-high oil prices and the toxic consequences of burning coal...
One thing is clear right now: The consumption of uranium is not something to just sit back and think about for the future... The boom is now and the time is short... Investors willing to take action are in for the ride of their lives. Let me show you why...
A Shortage of Historic Proportions - And Profits
Source: Australian Gov. Commodity Statistics
What it all adds up to is this: Uranium is in a crisis shortage, and the supply gap is growing by the day. This historic scenario is set to put gains of 3,150% or more into investors' pockets as this gap widens...
The chart at right tells a graphic story of what's happened with uranium since 1985, and why it's set to return such significant gains...
Simply put, demand has outstripped supply by 139%, and it's growing by the day.
The reasons are simple. After the Cold War, nuclear arms production ground to a halt. Enough uranium existed to feed existing reactors for years. And, in 1993, the U.S. signed a deal with Russia to feed U.S. reactors from dismantled nuclear warheads.
Consequently, uranium prices fell... It became economically unfeasible for companies to speculate on new mines or processing operations. The market just dried up...
Today, "above ground" uranium is at an all-time low. According to the market's leading journal, The Uranium Market Outlook , the reasons are a.) 30 years of underinvestment, b.) stringent regulations, and c.) an overall lack of exploration for uranium deposits. What's more, the Russian warhead deal's about to end, and that supply is 80% spent to boot.
The prestigious research firm, International Nuclear, Inc., just reported that commercial reserves of uranium fell by 50% from 1985 to 2003. It also reported this astounding fact:
In 2004, only 54% of the uranium consumed in the world came from mining. The rest came from the depletion of existing reserves.
There just isn't enough uranium to supply the world's current needs... not to mention the huge kick China's about to add...
And now here's the thing: The World Nuclear Association estimates that it takes eight years for a new mine to get "online" and produce processing-ready uranium.
That's right, eight years. Right now, existing facilities can't mine uranium fast enough to keep up with demand. It's a supply-gap squeeze the likes of which have never been seen in peacetime for any commodity.
Prices Have Not Only Doubled, They've Tripled... And the Run's Just Getting Started...
The fact is, the price of uranium oxide, the cheap raw material used to create clean electricity, has nearly tripled.
The Hoarding Has Already Begun...
Because of the mounting shortage of uranium, nuclear power producers are already "hoarding" uranium, in turn driving the price up even further. Merrill Lynch reported on October 31, 2005 that "Utilities have been adding to their inventory holdings on concerns about future availability."
In addition, several investment funds have been set up to do nothing but purchase - and hoard - uranium, including one company in Canada that, according to precious metals expert Paul Van Eeden, has bought enough to drive the price up by $7 per pound already.
For 10 previous years, from September 1993 until September 2003, the price of uranium oxide actually decreased, from $10.20 a pound to $10.10 a pound.
Then in 24 miraculous months, the price shot up nearly 200%, to $33 per pound. That adds up to more than $87,000 per metric tonne. A price never before hit in the history of uranium.
At current prices, ounce-for-ounce, this commodity is already 416 times more valuable than oil. It's 1,245 times more valuable than steel, 3,576 times more valuable than coal... or lumber... or concrete... or any other commodity that China is devouring to build its infrastructure.
In a few short months, uranium has become one of the most sought-after commodities since the Romans minted gold coins.
Yet, for the savvy investor, the real money's going to be made in China, and it's going to be made on one company that...
Just spent $7.2 billion to lock up the largest uranium deposit in the world... Has a direct shipping line into Beijing harbor, no less... Is about to have every ounce of its precious fuel spoken for by the Chinese government through an exclusive trade deal. It's a company that's about to see its bottom line fatten by an estimated $100 billion or more... The kind of profits that can bring a lifetime of wealth to the investor who knows how to follow the money trail.
Better yet, you don't have to go to China to pocket this windfall... In fact, the company I'm talking about is traded on the New York Stock Exchange, and it can be secured by any investor with the know-how to make one simple trade...
The Greatest Investment Opportunity in 25 Years...
I'm Horacio Márquez, senior analyst with The Oxford Research Advisory, one of the world's most successful private financial organizations.
Why the Uranium Shortage Dwarfs Oil...
According to the Energy Information Administration, the leading government reporting agency, in 2005 the demand for oil totaled 83.7 million barrels a day. Yet the total supply was 84.1 million barrels a day...
While OPEC keeps the supply tight, reserves low, and prices high, the fact remains: There is enough oil to go around .
Says industry analyst Mark Whistler: "When the world demands more oil, OPEC simply drives the price up and then turns on the spigot. And non-OPEC oil producers follow suit."
EIA estimates for 2006 in millions per day: Demand: 85.3 Supply: 85.4
EIA estimates for 2007: Demand: 87.2 Supply: 87.3
This is not so with uranium. The current supply gap is 139 times bigger. In 2004 the world could only produce roughly half the uranium consumed. Current estimates show the gap continuing beyond the projectable future.
One of the reasons I know so much about the market for uranium - and this deal in particular - is that I'm also the former head of Emerging Market Research for Merrill Lynch Asset Management, the largest brokerage and investment-banking firm in the world.
In all modesty, I've made investors and myself hundreds of thousands to millions of dollars over the past 25 years... and I've saved investors as much, if not more, by predicting the biggest global upswings - and downtrends - before they occurred. I did this by finding investments throughout the world poised to profit handsomely on these trends...
My team and I helped investors protect their wealth against the Argentine Fiscal Crisis, the Mexican Peso Devaluation AND the Asian Market Crash... well before any of these catastrophes became headline news.
In all, I've directed the investment of more than $20 billion throughout Europe, Asia and Latin America in the past 10 years... I've met with i nnumerable heads of state and finance ministers... and I launched the initiative for Peru to repurchase its defaulted debt in the secondary markets in 1996. This saved that country hundreds of millions, while making even more money for investors in the process...
I say this sincerely, and not to brag, but to alert investors to one thing:
Throughout my 25 years of research and investing, I've seen only one other opportunity even come close to uranium. ..
For instance, in 1998 when the world was running scared about a Russian collapse, I recommended to my mother and father, no less, that they buy Russian Federation bonds for 17 cents on the U.S. dollar.
Today, as Russia improved dramatically as I expected, they're selling for a premium at US$1.82, while they keep paying their 12.75% coupon all along. It has been one of the best investments in the world. Needless to say, their retirement years have been comfortable and secure... as has my peace of mind.
A Shortage That Could Shut Down the World's Energy for Six Months...
Last summer, the Asia Pacific Foundation of Canada issued a report stating there could easily be a 45,000 metric tonne shortage of uranium over the coming years. (One metric tonne equals 2204 pounds.) That shortfall equals half the uranium used in all of 2004. This shortage is big enough to shut down every nuclear reactor in the world for over six months.
But the uranium shortage of today is likely to dwarf these historic returns. There's never been a peacetime supply gap this large. The supply is limited by the number of mines in operation and strict government regulations from uranium-producing countries, including Russia.
Power plants in 14 countries are now hoarding supplies and trying to lock in contracts at current spot prices.
And be assured, the real profits for investors right now are not with small, undercapitalized penny stocks... small mining concerns with unfounded promises of "getting online" in the near future.
Instead, the path to unprecedented wealth - and the best way to play this situation - runs through China... And it ends with one company that owns the largest uranium deposit in the world...
Let me explain how China is about to lock up 25% or more of the world's uranium supply... and how this company is about to supply the lion's share of it...
China's Nuclear Mission Is Driving Mega Profits...
On a crisp autumn day, seven executives from five countries flew into Beijing Capital International Airport... Officials from France's giant Framatome Corporation... Westinghouse Electric and GE from the United States... Mitsubishi Heavy Industries from Japan... Russia's Atomstroyexport... Paris-based Alstom, and Germany's Siemens.
In November 2003, China launched the biggest nuclear initiative in the history of energy. BusinessWeek calls it the "largest buildout" ever, with more than US$50 billion of Chinese government dollars pouring into construction...
They arrived in Beijing to attend a conference held by the Chinese government, officially dubbed the "Nuclear Power Global Bidding Preparation Conference."
In one room sat the world's largest nuclear equipment builders, undergoing talks to launch the largest initiative to build nuclear-powered generators the world has ever seen. Today, we're seeing the results of this historic event... And the bottom line is this:
In addition to the nine nuclear power plants already operating in China, the government in Beijing is adding a whopping 30 more nuclear power plants .
This alone will give China nearly 11% of the world's nuclear energy capability.
But according to a report titled, The Future of Nuclear Power , put out by a blue-ribbon commission headed by former CIA director John Deutch, China will require the equivalent of 200 full-scale nuclear plants to meet its growing power needs .
Cleaning Up the "Planet's Worst Cities
It's no secret that China needs a massive infusion of energy. Blackouts and brownouts are a common way of life in Shanghai and Guangzhou.
Add to that a skyrocketing industrial base, a decreasing supply of oil and coal, massive pollution, and a rail system that's dilapidated, creating fuel bottlenecks...
And Beijing may well be the dirtiest city in all of Asia, with coal-fired power plants spewing some 800 million tons of dirt, soot and byproducts on Beijing every year. It covers not only the outside, but the inside of dwellings as well. The World Bank says that the People's Republic is "home to 16 of the planet's 20 worst cities."
According to Wired magazine: "A team of Chinese scientists advising Beijing leadership puts the [required energy figure] even higher: 300 gigawatts of nuclear power, not much less than the 350 gigawatts produced worldwide today ."
And China has only one option for fueling this massive nuclear program... one Australian company traded on the New York Stock Exchange that owns the largest uranium deposit in the world. Its ties with China are so close it recently held its board meeting in Beijing.
Once Wall Street catches wind of its impending trade deal with China, the company's shares are about to light up like the Fourth of July, as analysts and investors quickly price in earnings.
The company's revenues are about to double in the short term, with estimates that investors may well pocket a quick 216% in the next 60 to 90 days - with gains as high as 10-, 20-, even 30-to-one thereafter...
For anyone who missed out on the great string of China commodity windfalls in steel or concrete, copper or oil, this a chance to take your share of an historic investing opportunity... One that your kids, your grandkids, or even your great-grandchildren will tell stories about...
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