Baltimore, MD--Now that the NYMEX has begun trading uranium futures, the big question on our minds is what kind of effect it will have on our investments. Unfortunately, the answer is still a few months away.

I have a confession to make: I absolutely cannot stop thinking about uranium lately.

It's not my fault, either--it's yours.

As my Energy and Capital and Wealth Daily readers know very well, I feel that nuclear energy is the most attractive option for our world's future energy needs.

It wasn't until yesterday that I realized exactly how many of you agreed with me. Responses have been flooding my email lately, forcing me to buy more space for my inbox. The odd part, though, is that I'm happy to spend the money.

Here's the thing . . .

You and I are right about nuclear energy.

First, let's take a quick look at the global energy picture.

The world's soaring thirst for energy will be the biggest issue over the next few decades--not global warming, overpopulation or even the death and devastation of war (which will most likely start over the energy crisis).

And the catalyst of the energy crisis will be Peak Oil.

If you don't believe me, I understand. But I would urge you to look at the news coming out every day. You'll see a fossil-fuel driven world gasping for breath.

We see an oil industry fighting for dear life to keep oil production up. Ninety percent of the earth's largest oil fields have already entered into depletion.

Today, we found out that oil shipments of North Sea Brent crude will fall next month. About 6.5 million barrels of oil are expected to be shipped in June, compared to the 6.9 million barrels scheduled for May delivery. That's a drop of roughly 5.6%.

This is a significant concern, considering that Brent Crude oil is used to determine prices for over 66% of the world's oil production.

Things are bad for oil producers. We're looking at a massive rise in oil prices over the next decade. But oil's fall from its throne is our gain. And we'll be counting our profits, especially when oil prices fly past $100 a barrel in the coming years.

Unless the world feels like taking a huge step back to the Middle Ages, we're going to have to get our energy from somewhere!

Although the recent green trend is admirable, the problem is that we started developing these renewable sources too late.

Can the renewables eventually provide the energy we need?

With enough development, there's no doubt they can. But these sources won't be able to satisfy demand on a global scale for a long time. We're looking at decades of research and development.

Like I said, we started too late.

Nuclear energy, on the other hand, is experiencing a massive renaissance--and it's taking uranium along for the ride.

On Tuesday we talked about uranium's weekly spot price jumping to $120 a pound.

This week, the NYMEX began trading uranium futures in monthly contracts. And so far the contracts have been trading steady around $140 per pound. You see, the NYMEX can see the rapid growth in the nuclear industry as well as we can.

Here are some details on the contracts:

• The contract size is 250 pounds of U₃O₈
• The symbol will be UX
• Trading hours will be between 6:00 P.M. through 5:15 P.M., Sunday through Friday. A 45-minute break will take place each day between 5:15 P.M. and 6:00 P.M.

You can find out more specifics here.

But as excited as I am seeing uranium trading at those levels (I actually think these prices are far lower than what we'll be seeing next year, but I'll save that for later), we can't jump the gun and declare victory.

The truth is the monthly contracts on the NYMEX have a few obstacles to get past. The market is still very illiquid. So for the first few months, I believe we're going to see nearly all the activity coming from speculators and trading firms.

But we are still in the early stages, and prices can still experience some major fluctuations.

The fact is that whenever we see uranium prices moving higher, we can expect our uranium mining plays to follow suit. I'd feel guilty if I didn't at least show my readers a way to make some huge gains from the oncoming energy crisis. If you're interested in looking into some of our major energy plays, just click here.

Here's what it comes down to, friends . . .

With such a major demand for uranium, we can expect to see our mining companies taking full advantage.

Until next time,

Keith Kohl