Imagine the surge in oil prices if Saudi Arabia shut off 100% of its production… followed by a complete shutdown in Iraq.

That’s effectively what just happened in one corner of the market… And it’s one of the most bullish signals I’ve ever seen in commodities. Investors buying today could make a fortune in the years ahead.

Let me explain…

Two of the world’s top producers just agreed to take a huge chunk of annual global uranium production off the market…

Early last month, news hit that uranium miner Cameco’s (CCJ) McArthur River mine – responsible for around 10% of global supply – will shut down for most of next year, starting in January.

Then, last week, leading global uranium producer Kazatomprom announced a 20% production cut for three years.

In total, these two cuts will remove more than 16% of uranium production from the market, starting in January.

That may not sound like a lot. But this change is big news…

You see, it typically only takes a couple of percentage points of global shortage or excess to cause massive price swings in commodities. For example, this year’s OPEC production cut amounted to less than 2% of the total global oil supply. And most OPEC production cuts have historically taken between 2% and 6% out of the global supply.

Each time, these small production-cut percentages balanced the market and sparked huge price gains. That’s why this setup is so promising.

Not only that, but uranium stocks have been left for dead. World-class miners have seen their stocks crushed in recent years. And that could lead to big gains when the market recovers.

Take a look at what has happened to uranium stocks since 2011…

Over the past seven years or so, uranium stocks have plunged nearly 90%.

Carnage like this is rare… But we’ve seen similar situations before. Early last year, coal stocks looked a lot like uranium stocks today – with 90% declines from their April 2011 peak.

Then, as capacity came off line and supply decreased, coal stocks rallied by 187%. Take a look…

And that was in a dying industry. We could be setting up for an even stronger rally in uranium… because uranium is still a growth market.

Demand for electricity is on the rise in Asia. The two most populous countries in the world – China and India – each view nuclear power as a much-needed source of cheap, clean fuel. According to the World Nuclear Association, China plans to increase its nuclear capacity 70% from last year by 2021.

Globally, the International Atomic Energy Agency projects a 123% rise in nuclear capacity by 2050.

Combine future demand with a major supply reduction, and we have the ingredients for a powerful bull market. Even if uranium stocks make up only a fraction of their decline since 2011, investors could see gains of 100%, 200%, or more.

The market is already responding to the production cuts. Since Cameco’s announcement a month ago, the Global X Uranium Fund (URA) has leapt up around 30%.

That’s a lot… But this is still just the beginning. Commodities markets play out over years and decades – not weeks and months.

Investors who buy in now can still make big profits. And URA is an easy way to take advantage of the opportunity.

Good investing,

Ross Hendricks

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Source: Daily Wealth