Barron:  “I am looking closely at what is happening with the gold market and what’s happening with uranium.  When it comes to gold, we are at a five-month high right now.  The interesting thing is what is happening in Shanghai....

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“The premiums have backed off and gone negative.  This is not surprising because the Chinese buy when the price is low, and when the price of gold shoots up they back off a bit.  They don’t sell but they back off on the buy side.

So this move in gold has had a boost from the situation in Ukraine and some weakness in the dollar.  But the real reason for this move is the fact that the gold market was extremely oversold at the end of last year and it is rebounding.

The fundamentals for gold are still very bullish. We have also seen a steady pattern of gold buying from Asian central banks that are getting rid of surplus dollars.  As long as there is QE going on all around the world, people are going to want gold instead of paper.

We also see silver is back up above $21 an ounce, and of course the gold and silver shares have been doing well.  If there is any good news in the gold and silver markets, the shares take off.  So the momentum has been solidly on the side of the bulls.

In the uranium market, the Russians have said they are not going to let any uranium cross through Ukraine to get to the rest of Europe.  As a result the EU has put the brakes on two very large Russian natural gas projects that were supposed to supply natural gas to Europe.

Right now there are 28 countries in Europe that depend on Russian natural gas.  But the Russians can turn off the natural gas at any time and use leverage against the EU.  Some countries -- such as Latvia and Lithuania -- rely completely on natural gas from Russia.

This may lead to fracking in these countries to lessen dependence on Russian natural gas.  All of this is very bullish for nuclear energy.  Why would Europe consider turning off reactors if the Russians are going to use leverage against them and perhaps turn off the natural gas so everyone freezes?  This has happened twice before in Europe.

This is why the Wall Street Journal recently called Germany’s energy policy 'truly bizarre’ by foregoing native coal for dependence on Russian natural gas.  The Germans also installed solar panels in what is a relatively sun-starved country.

This doesn’t make any sense.  The Germans are shutting down nuclear power in their own country only to buy the nuclear power from the French.  This really is bizarre.  You can’t make this stuff up. [Laughter ensues]  So the French are exporting their electricity to the surrounding countries.  Germany is making a false claim that it is ‘going green’ while its energy is being generated through nuclear power next door in France.  This is very strange.

In Japan 10 of the 17 reactors are now ready to be restarted.  The other seven soon will be ready to go as well.  By the middle of this year many of these reactors will already be up and running again.  This is why you see the uranium equities charging ahead right now.

We know that it’s going to take at least a $70 price to start new uranium projects.  This means the price of uranium will have to at least double from current levels.  If we don’t see a doubling of the uranium, you are just going to see a further constriction of supplies.  So these are bullish days for the uranium market and uranium producers, and this is especially going to drive up the price of uranium equities with pounds in the ground.”

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