Montreal, Canada

The big bear market in uranium is drawing to an end. From a three year low earlier this year at less than $40 per pound, the price has rallied 25% this year on the heels of rising demand from China and Middle Eastern countries.

On the supply side, the Russian military is no longer dumping nuclear waste on the market, which aggravated prices for more than 24 months following uranium’s super-spike in mid-2007. From its all-time high more than three years ago, spot uranium prices are down 60%.

In 2010, my Commodity Trend Alert (CTA) plugged two uranium companies in Canada.

The first company, a small-cap, was stopped-out at a 20% loss in the first quarter as uranium markets continued to fall.

But my latest recommendation in the space, Cameco Corporation (NYSE-CCJ), has rallied more than 45% since July. Cameco recently received its biggest order in history from the Chinese government as the country aggressively seeks to secure global supplies of mineral wealth to fund its vast infrastructure development.

Uranium is also making a comeback in the Middle East where big oil-producing countries are looking down the road and realize they must supplement declining long-term oil supplies. And in 2010, the United States introduced plans to build two new nuclear reactors in Georgia – the first nuclear projects since the Three Mile Island disaster more than 30 years ago. India is also ramping up production this decade with many new facilities already under construction.

Nuclear energy remains among the cleanest burning sources of energy. The big problem is storage and how the environmentalists might impact its future consumption. Increasingly, however, nuclear power is making comeback as it goes mainstream not only in the advanced economies but throughout the emerging markets.