Commodities have been in a downtrend since 2011. All commodities are priced in U.S. dollars, and a strong dollar has acted as a headwind.
But signs right now point to a possible bottom and reversal in commodities.
Uranium has been one of the worst performing commodities markets for years. Since 2011's Fukushima reactor leak, the price of uranium fell by more than half.
But we're now at a pivotal point in this sector. Demand is about to jump, uranium supply outlook is getting tighter, and Japan's nuclear needs are coming back.
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Markets clearly move in cycles, and commodities are no exception.
In fact, resources as an asset class are prone to the most extreme examples...
The good news is that recognizing and embracing these boom/bust cycles can make for huge profits.
And right now, a boom is clearly taking shape...
A number of commodities subsectors have already erupted on a dramatic surge upward...
And some equally dramatic indicators point to them heading much higher still... Full Story
Back in November we took a close look at the uranium market.
That's because the end of a 20-year milestone agreement was fast approaching...
From 1993 to 2013, the Megatons to Megawatts program saw highly enriched uranium from 20,000 Russian warheads converted into nuclear fuel, supplying American utilities.
At the time I highlighted a uranium investment that could profit from this opportunity, and it's just begun to tap into its upside...
Now we're seeing more bullish developments that point to even bigger gains... Full Story...
One in every 10 lightbulbs in the United States gets its power from Russian fuel. It's been that way ever since 1993, when the Megatons to Megawattsprogram began.
Under this agreement, the highly enriched uranium (HEU) contained in ex-Soviet nuclear weapons was downblended and converted into nuclear fuel.
It was a win-win arrangement. Americans got the nuclear fuel they needed; the Russians got the hard currency they needed. And the world got a cleaner, less dangerous environment, as around 20,000 warheads were stood down.
But this era is rapidly coming to a close. The very last shipment of the program's uranium recently left St. Petersburg, Russia, for Baltimore, Maryland.
By the end of December, the deal that helped provide about half of all commercial nuclear power in the United States... will simply end.
And that's going to open up a fantastic opportunity for us...
We looked at aluminum's profit potential two weeks ago. But the other "forgotten" metal could double, too. It may go up even more.
In fact, this one is already the most-used metal in the world.
That's why my favorite play here could double...
Morgan Stanley (NYSE: MS), in its newly released Commodity Manual, just delivered good news for anyone investing in commodities in 2013.
The report gives a bullish outlook in 2013 and 2014 for eight of 14 commodities it evaluated. Estimated two-year gains range from 3.05% to 17.3%.
Money Morning Global Resources Specialist Peter Krauth agrees most commodities will perform well. In fact, he projects even higher growth than Morgan Stanley's outlook.
"With central banks on their virtually uninterrupted fiat money-printing spree bound to continue for the next few years, hard assets remain a great place to be," Krauth says. "That being said, some commodities will undoubtedly do better than others."
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