Supercycles in commodities - i.e. Bitcoin, Uranium
Updated
Supercycle - a term which is gaining popularity these days, applies to commodities. Basically what happens is surge in demand, which current supply struggles to cover, causes prices to sky-rocket from being under-valued to highly over-valued.
In my opinion Bitcoin and its' four-year cycle is the best example. The main event of the cycle is halving (halving the rewards of mining bitcoin), which is causing supply-shock and aftermath in the form of speculative bubble.
I strongly believe we are about to see a supercycle in Uranium in the following years. Spot price of that commodity is right now under-valued to such an extent Cameco (one of its largest global providers) is buying it from the spot market in order to meet the contracts and keeping some of its mines closed (waiting for the prices to rise). Currently there are about 440 active nuclear reactors and 50 being constructed (more than 10% of the actual number) mainly in China and India (respectively 16 and 6 as of March 2021). Interesting pair, isn't it? If the rest of the world does not want to stay behind they will have no choice but to follow that direction.
Nuclear energy is not opponent of wind and solar energy. It is their carbon-free companion versus the coal.
Technicals:
We are confirming the falling wedge break-out right now. If price action will succeed to do so, there might be rally much quicker than I expected when I first opened position.
In my opinion Bitcoin and its' four-year cycle is the best example. The main event of the cycle is halving (halving the rewards of mining bitcoin), which is causing supply-shock and aftermath in the form of speculative bubble.
I strongly believe we are about to see a supercycle in Uranium in the following years. Spot price of that commodity is right now under-valued to such an extent Cameco (one of its largest global providers) is buying it from the spot market in order to meet the contracts and keeping some of its mines closed (waiting for the prices to rise). Currently there are about 440 active nuclear reactors and 50 being constructed (more than 10% of the actual number) mainly in China and India (respectively 16 and 6 as of March 2021). Interesting pair, isn't it? If the rest of the world does not want to stay behind they will have no choice but to follow that direction.
Nuclear energy is not opponent of wind and solar energy. It is their carbon-free companion versus the coal.
Technicals:
We are confirming the falling wedge break-out right now. If price action will succeed to do so, there might be rally much quicker than I expected when I first opened position.
Note
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