Published January 03, 2017

Trump’s Radical Policies Could Breathe Life Back Into This Beaten-Down Market

Donald Trump is stirring up controversy again.

You’ve probably noticed that Trump isn't afraid to speak his mind.

Since winning the U.S. presidential election a month ago, he’s called out his "enemies” for being sore losers. He’s attacked the Chinese for their trade policy. And he’s accused defense manufacturers of ripping off the U.S. government.

Trump’s latest controversial statements centered around America’s nuclear weapons program. He wrote on social media website Twitter on December 22:

The United States must greatly strengthen and expand its nuclear capability until such time as the world comes to its senses regarding nukes.

Many Americans aren’t used to hearing their president—or, in this case, president-elect—talk like this. That’s because the U.S. government has been trying to reduce its nuclear weapons program for decades.

•  Trump’s comments also caught the attention of longtime rival Russia…

Russian President Vladimir Putin said on the same day of Trump’s tweet:

We need to strengthen the military potential of strategic nuclear forces.

To which Trump replied:

Let it be an arms race. We will outmatch them at every pass and outlast them all.

Talk of a new nuclear arms race has put the world on edge. Many people think this kind of rhetoric could fuel a new Cold War. Others fear it could trigger something much worse…nuclear Armageddon.

At this point, it’s too early to know where Trump’s inflammatory statements could take us. After all, we still don’t know what we’re getting with him. Remember, he hasn’t served a day of public office in his life.

•  Still, investors need to be prepared should a new Cold War break out…

The easiest way to protect yourself from this scenario is to own physical gold.

As we often point out, gold is real money. It’s protected wealth for centuries and through every sort of financial crisis. Many folks buy gold when they’re nervous about the economy, the financial system, or politics.

If tensions between Trump and Russia continue to escalate, many investors could seek shelter in this trusted safe haven. And that could cause the price of gold to skyrocket.

•  Uranium should also do very well if the U.S. and Russia start building more nukes…

After all, uranium is the raw material used in nuclear bombs. But that’s not the only reason we like uranium.

You see, Trump isn’t just pro-nuclear weapons. He’s pro-nuclear energy. The president-to-be has gone on record and said, “I’m in favor of nuclear energy, very strongly in favor of nuclear energy.”

Given Trump’s stance on nuclear power and weapons, uranium demand could soar over the next four years. And that could mean huge profits for investors.

•  Uranium has been in a bear market for nearly a decade…

Last year, the price of uranium plunged an incredible 41%.

It’s now down more than 85% from highs it set back in 2007, and is trading at levels last seen in 2004. According to International Speculator editor Louis James, uranium is now selling for about a third of what it costs to produce.

•  The uranium market fell apart for a couple reasons…

Number one, there’s too much of it.

Thanks to high prices, miners dug huge amounts of uranium out of the ground during the last bull market. But demand for uranium couldn’t keep up with the giant increase in production. This resulted in a huge surplus that caused the price of uranium to plunge.

Uranium also has a terrible public image.

As you probably know, most people associate nuclear power with the disasters at Three Mile Island, Chernobyl, and Fukushima. Irrational fears about nuclear meltdowns have encouraged countries like Japan to practically abandon their nuclear power programs.

There’s just one problem…

•  The world needs uranium, whether people admit it or not…

Louis wrote two weeks ago:

[T]he reality is that despite all the green dreams and nuclear nightmares flooding pop culture, there is nothing that can provide modern civilization with the reliable energy it needs like nuclear power…

If people want to light their homes and keep them warm over the next five years, uranium prices will have to go up. If China wants to keep its economy growing without blanketing the country with a permanent pall of smog, uranium prices will have to go up. The same goes for India and many other places.

According to Louis, it’s hard to predict when uranium will buck its downtrend. But it’s likely to happen sooner rather than later. Louis explained why in the latest issue of International Speculator:

• In China, demand for uranium will increase nearly fivefold under current proposals.

• In the United States, five nuclear reactors currently under construction will require an additional 2.83 million lbs. of uranium annually.

• In Russia, several reactors are under active construction. Another 25 are planned, though some will replace existing plants. Russia's Rosatom has also made inroads into markets around the world by signing deals to build reactors in Jordan, India, Iran, and Argentina, among others.

• In India, the need for uranium is forecast to rise a whopping 773%, second only to Iran in terms of percentage growth.

Now, the average nuclear power plant takes almost six years to build. But investors won’t have to wait that long to make big gains in the uranium market. That’s because the uranium glut could turn into a deficit by as soon as mid-2017.

What's more, the price of uranium is rising for the first time in years.

You can see in the chart below that it’s up 8% since Election Day. It also recently had its best week since 2015.

•  Two weeks ago, Louis said uranium is “hands down” the best contrarian opportunity…

A week later, Louis told International Speculator subscribers how to profit from higher uranium prices. He revealed a company that’s sitting on “spectacular high-grade drill results.”

If uranium prices keep climbing, this stock could deliver monster gains. You can learn all about this company by signing up for International Speculator. We’ll even give you 30 days to decide if the service is right for you. Click here to get started.

Regards,

Justin Spittler
Delray Beach, Florida
January 3, 2017


The Other Cold War Is Heating Up

Today, we have a unique insight from Louis James to share with you.

In the essay below, Louis discusses rising tensions between the U.S. and China. The mainstream media has said very little about this. They’re too busy obsessing over souring relations between the U.S. and Russia. But Louis thinks you would be a fool to ignore this potential conflict.

(The following essay originally appeared in Louis’ Weekly Bulletin, which International Speculator subscribers receive each week.)


By Louis James, editor, International Speculator

China seized a U.S. Navy drone in international waters the day after Donald Trump suggested that he might reverse U.S. policy with regard to Taiwan and China. I can’t see that as a coincidence.

I also can’t see Trump backing down. Making China his punching bag during the election helped him win. Talk about throwing stones at a hornet’s nest.

There’s been much talk of a renewed cold war between Russia and the West. I’m not dismissing it; it’s a very important reality in today’s world. But China’s aggression in the South China Sea is as important as Russia’s seizure of Crimea.

The difference is that, while Trump seems inclined to bury the hatchet with Russia, he seems just as inclined to stoke the flames of conflict with China. I guess that's because, except for computer programmers, Russians are not seen to be taking American jobs.

I’m not suggesting for a minute that China’s aggression should be ignored. But neither should its nuclear weapons and ICBMs.

Frankly, I do not have a solution for the South China Sea conflict. Maybe there isn’t one. But surely it would be better if the matter were handled with calm and care, rather than ham-fisted bluster.

Be that as it may, the thing that caught my attention as a resource investor was that gold popped on the news of China’s action. It was only a $10 bump, and half of that was gone by the end of the day, but it tells us that precious metals are still the safe-haven assets they have always been. No mere “barbarous relic,” this.

And so, with the year almost over, I must ask myself: Do I see the global economy of 2017 being less chaotic and dangerous than that of 2016?

Nope.

• I see this “other” Cold War with China as a serious and escalating threat.

• I see the “old” Cold War with Russia as a serious threat that may calm down for a while, but one that is unpredictable to its core. (With personalities like Trump and Putin center stage, how could it be otherwise?)

• I see Europe already on a slide towards disintegration that will send major shocks through the global financial system.

• And even without any international crises, I see the Trump Honeymoon coming to an end by the end of Q1 2017. One way or another, that spells volatility.

What do you see?

If, like me, you see more conflict and chaos ahead, precious metals will remain a critical part of your asset holdings. Select gold and silver stocks will remain a major component of your speculations for gains. Some diversification to bet on the Trump tailwind for industrial minerals is called for as well.

Editor’s note: Unlike most investors, Louis’ subscribers are in position to profit during these chaotic times. They own companies that should thrive during the Trump years. They also own stocks that could skyrocket if a global financial crisis or something worse breaks out.

You, too, can learn how to protect yourself and profit during these uncertain times by signing up for International Speculator. Click here to begin your risk-free trial.