Pick Your Poisen in Las Vegas

*** Great New Ideas for Investors…
*** Ride the Uranium Bull…

Dear American Capitalist Reader,

What a terrific week in Las Vegas! The sun’s been shining and the town has been bustling with activity as the first annual Agora Financial Commodities and Traders Seminar took place at the world-famous Bellagio.

Along with colleagues Sara Nunnally and Krista Das, the three of us took full advantage of the two-day seminar by rubbing elbows with some of the most brilliant minds in the energy markets, and left with a renewed respect for the investors trying to capitalize during the current commodities boom.

I personally left with an abundance of new ideas for investors and look forward to relaying this information in upcoming issues of the Diligent Investor , from sector-rotating strategies to tactical asset allocation models, my mind has been opened to so many new ways to make money trading oil and gold. I really look forward to getting readers’ reactions to these new and innovative ways to make money and see if they get as much value added as I did.

And, to be the investors’ complete source of information, we decided to tape the seminar for not only posterity, but also for investors to learn what we learned and experience the same spectacular ideas and suggestions for their own portfolios. Look for more details to follow in the next couple of weeks as we make the videos available to the investing public.

Now, it’s time to get back to converting these ideas into content for all the readers to enjoy. So, as I do that, enjoy the rest of your trading week and have a fantastic weekend.

Sincerely yours,

Todd M. Schoenberger,
Senior Equities Analyst, Diligent Investor

Over to Andrew Mickey with more…

New All-time High and no end in Sight

’s not too often you see a chart like this. After almost a decade of relatively flat price movements, uranium has done nothing but go up since the summer of 2003. In the process, uranium prices have climbed more than 490%.

That, however, isn’t nearly as fast a rise as other critical minerals like molybdenum and titanium have had. Those two minerals have actually outpaced the stellar rise of uranium. Those minerals along with copper, zinc and nickel prices are starting to weaken. But uranium prices show no signs of weakening.
Uranium prices have been climbing steadily over the past few years and show no sign of slowing down. And there are two reasons why.

First off, uranium is a very unique commodity in that its price is very “inelastic.” That’s economic parlance for when demand is poorly correlated to price. The classic example of a product with inelastic demand is cigarettes. As a pack of cigarettes rises in price, the total number of packs consumed changes very little.
Uranium is very similar because of the amount of electricity a single pound of uranium can produce. In fact, uranium only accounts for a very small portion of the total costs of electricity generation from nuclear power. For instance, at $54 per pound, uranium only adds $2.70 per megawatt-hour (MWh) of electricity. And with a MWh of electricity currently selling for about $37, uranium only accounts for 7% of electricity generation costs.

That’s why uranium could hit $100 per pound and nuclear power companies wouldn’t be overly concerned. They could easily pass the extra $2.50 per MWh in costs onto consumers and only increase their rates by an additional 6.8%.

The second reason uranium is different is because there’s a secondary artificial layer of demand. Right now, there are three hedge funds devoted exclusively to buying up uranium. And the newest one, the Solios Uranium Fund, just started buying up uranium on the open market about a month ago.
One way to get in on the ever-rising uranium market is to invest in one of the hedge funds with Uranium Participation Corporation (U:TSX). However, Christian DeHaemer, publisher of GRESSOR, has identified an opportunity in uranium that has stayed under Wall Street’s radar.

It turns out that one of the largest uranium fields in Australia is about to be opened up for mining by governmental decree. But here’s the kicker: One company owns all the mining rights! To read his full report click here.

That’s all for now.

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Pick Your Poisen in Las Vegas