The Supply and Demand Imbalance You Should Keep an Eye On

Editor's note: The AI boom is quietly creating an energy crisis – one that the U.S. isn't prepared for. In this issue, adapted from the Health & Wealth Bulletin, Dr. David "Doc" Eifrig explains why nuclear power is emerging as a critical solution. And as uranium demand surges ahead of current supply, that imbalance could send prices sharply higher, creating a powerful opportunity for investors...

The U.S. will be desperate for more energy in the coming years...

It's hard to talk about markets (let alone anything) without bringing up artificial intelligence ("AI"). AI is the buzzword on just about every news site. And it has only just begun.

As you may know, the data centers powering AI demand vast amounts of energy. According to the Electric Power Research Institute, power demand for AI is projected to increase 10-fold by 2030.

One answer to the problem is uranium and nuclear energy.

Nuclear power is created by splitting atoms to release energy in their core. (The core of an atom is called its nucleus, leading to the term "nuclear.") This process, which is called nuclear fission, creates heat and is directed toward something to cool it down – like water. The water heats into steam, which turns a turbine that's connected to a generator... and presto, electricity.

Given past fears about nuclear power's safety and the storage of radioactive byproducts, this energy source seemed to have a dwindling future.

But that's changing...

Nuclear power has been enjoying a renaissance in recent years. And that's only going to accelerate...

Nuclear Power Is No Longer Optional

Uranium is the basic building block of nuclear energy. Processed and enriched uranium is used as fuel for nuclear reactors. And unlike fossil fuels – which deliver more than three-quarters of the world's energy – nuclear energy is completely carbon-free.

Nuclear power accounts for around 10% of the world's electricity. In the U.S., it's nearly twice that figure. And nuclear energy supplies more than a third of the electricity in Belgium, France, and Sweden.

It also provides what's called "baseload" power. Environmentalists love wind and solar energy as guilt-free renewable options. But wind turbines need wind, and solar panels require sunshine. Nuclear power plants only depend on uranium. That makes them more reliable.

A stable power grid needs energy sources that supplement each other. Even in a world that embraces renewables like solar and wind, nuclear power will play a key role.

Clearly, there's demand for uranium and nuclear energy... According to the World Nuclear Association, demand for uranium in nuclear reactors is projected to rise roughly 30% over the next five years.

There's one issue, though. Uranium is facing a severe shortage.

This Is What Real Supply Shock Looks Like

Since 2018, the uranium market has been structurally undersupplied, with production meeting only 80% of global demand. This deficit isn't temporary. It's systemic.

According to Global X Funds, there will be a shortfall in uranium production of 60 to 70 million pounds in 2025.

That's why the government is scrambling to ramp up domestic supply. Here are some of the actions it took last year...

• President Donald Trump signed a flurry of executive orders boosting domestic uranium production and unlocked federal land for new development.

• Congress passed the ADVANCE Act, a bipartisan bill set to accelerate nuclear reactor construction at a breakneck pace we haven't seen since the 1970s.

• And tech giants Alphabet, Amazon, and Microsoft all pledged to triple global nuclear power capacity by 2050.

Put simply, the race is on...

And that leaves us with a compelling supply-and-demand imbalance for uranium. As you should have learned in your high school economics class, when demand is greater than supply, prices rise.

Based on past booms, you should consider adding exposure to uranium prices in your portfolio to capture incredible gains...

For example, uranium prices skyrocketed from less than $10 per pound in 2000 to an all-time high of $136 per pound in 2007. Take a look...

You could've made more than 1,000% gains in just a few years – all triggered by a supply crunch similar to today's scenario.

Now, investing in uranium funds and uranium producers is not for rent money. Uranium can be highly volatile.

But for investors looking to add exposure, an easy way to do so is through the Global X Uranium Fund (URA). It's a broad measure of roughly 50 of the largest uranium companies in the world. And in 2025, it rose roughly 60%.

In short, a major supply-demand imbalance can send uranium soaring... faster and higher than most people could ever expect.

We believe uranium is one of the few hopes for a low-carbon future. More nuclear power plants are being built, while uranium production is not as high as it should be.

It's rare to see an obvious setup like this... with demand much higher than supply. But we believe the bull run in uranium still has a long way to go.

Here's to our health, wealth, and a great retirement,

Dr. David Eifrig

Editor's note: Behind the push for America's next energy boom, a far bigger opportunity is quietly taking shape. The U.S. government is preparing to auction off millions of acres of public land to develop a virtually limitless new energy source. Billionaires are already circling. But most Americans have no idea what's happening – or how much wealth could be created before March 31.