3 uranium ETFs that pack a nuclear punch

how to invest in uranium

It boasted dozens of nuclear power plants, minimizing the mineral-bare country’s reliance on imported energy sources like coal and fossil fuel. Unfortunately, uranium also has a dark side, as the 2011 earthquake-tsunami-Fukushima reactor meltdown trio illustrated. Following the catastrophe, Japan shuttered its nuclear power plants, with many countries following suit or re-evaluating their own nuclear plans.

The idea of banning Russian uranium was discussed in European Union circles, but was never formally proposed due to reliance on the country’s uranium supply, Investigate Europe reported. The uranium futures price eased to $45/lb in the last days of 2021 and in January 2022. It started to climb towards $50/lb in early March 2022, following the invasion of Ukraine, and hit $64.50/lb in the middle of April. According to the Saskatoon-based miner, state-owned enterprises control nearly 80% of uranium primary production.

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Please refer to the Management Information Circular or the Prospectus for a description of these risks. As populations in these regions migrate from rural areas into cities, demand for power should soar. In fact, for many segments of the economy, demand for electricity is inelastic.

There was also a growing concern over the health effects of “radioactive glass.” Currently, scientific studies have debunked this theory, concluding that uranium glass appears to have no harmful effects on human health. The inhabitants of these countries will eventually also start to benefit from advanced technologies, the internet, robots and industrial plants will become more and more automated. More and more processes will probably be automated in the future and, with the technological progress of humankind, the number of robots in use may also increase significantly. Meanwhile, conservative expert estimates say that humanity will double its demand for electricity by 2050. Japan’s announcement represents a significant policy shift to address issues, among them soaring prices, strained supplies and extreme weather.

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Uranium Energy is an American uranium mining and exploration company. Founded in 2003, the company has headquarters in Texas and focuses its projects mainly throughout the southwestern US, in the states of Texas, Wyoming, Arizona, Colorado and New Mexico. It also has operations in Paraguay, which is one of the highest-grade Ferro-Titanium deposits in the word. Uranium Energy has one of the largest databases of historic uranium exploration in the US. The company is dedicated to providing low-cost fuel for emission-free electricity in order to contribute towards a cleaner environment overall.

Additionally, the onset of the Covid-19 pandemic in 2020 restricted mobility and cut uranium production. As a new administration focuses on raising American energy production, O’Sullivan’s Windfall describes how new energy realities have profoundly affected the world of international relations and security. New technologies led to oversupplied oil markets and an emerging natural gas glut. It changed the structure of markets and altered the way many countries wield power and influence. Solar energy, once a niche application for a limited market, has become the cheapest and fastest-growing power source on earth. But in Taming the Sun, energy expert Varun Sivaram warns that the world is not yet equipped to harness erratic sunshine to meet most of its energy needs.

how to invest in uranium

We’ll discuss how you can identify a good stock, where you can find reliable information about uranium stocks, and which ones may be worth investing in over the next few years. The North Shore Global Uranium Mining ETF invests in uranium mining, exploration, development, and production firms. It also owns firms that own actual uranium at spot prices, royalties, and other non-mining assets. The fund aims to track the North Shore Global Uranium Mining Index, a market-cap-weighted uranium index.

Uranium Held

The subsequent rises in uranium were halted by the Fukushima power plant accident and global criticism of nuclear power. Unfortunately, uranium isn’t investment-grade in the same way that beef or gold is. While a handful of stocks and funds provide direct or indirect exposure, they also come with unique risks both in your portfolio and out.

  • The answer is to create a better capitalism by understanding and harnessing the power of creative destruction – innovation that disrupts, but that over the past 200 years has also lifted societies to previously unimagined prosperity.
  • Over the past few years, it has actually been hard to find a commodity in the market that hasn’t hit its ATH or at least come close to its former price highs.
  • It’s owned by BHP, a global leader in the exploration, development, and production of minerals.

Uranium, therefore, requires processing to increase its isotope content in a process called enrichment. It is malleable, ductile and an electrical conductor (specific resistance 28×10-8 Ω-m; 16 times greater than copper). The failure of the reactors at the Fukushima plant was the most serious nuclear accident since the Chernobyl disaster. The cause of the accident was a massive earthquake off the coast of Honsiu, Japan. Uranium glass fell out of favour in the late 1940s due to its association with war and nuclear weapons.

Uranium price predictions from Australia”s Department of Industry, Science and Resources, TradingEconomics and Wallet Investor all indicated that prices were expected to rise in the future. Countries are also seeking to restart or add nuclear capacity amid sky-high coal, oil and gas prices, which has also contributed to the price rally. “Many projects were placed in hiatus or paused during the long run of low prices after 2011, and will require significant time to reopen or finalise. Additionally, a small number of private businesses and organisations such as UxC LLC independently monitor the uranium market and develop price indicators.

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It has two facilities in Utah and Colorado, with a total licensed capacity to produce up to 8 million pounds of U3O8 annually. Cameco Corporation reportedly recorded 45 million pounds worth of long-term uranium contracts last year, with plans to increase that number moving forward. Your involvement doesn’t end once you have the stock in your portfolio. The monitoring process is arguably the most important step, as it gives you insight into whether to hold, sell, or buy more of the stock. Scott also run a really great Telegram channel that I recommend you join.

Its core concentration is developing the high-grade Triple R uranium deposit, which is part of the Patterson Lake South (PLS) project located in the Athabasca Basic. Triple R is the only existing major high-grade deposit in the region found at such a shallow depth. Since Fission Uranium was founded in 2013, the company has made a number of significant discoveries and has won awards for Mining Persons of the Year and Exploration of the Year.

Once you have figured out the best place to buy Uranium Energy stock, it’s important to analyze their stock before you invest, so you can understand the risk and upside. Uranium Energy Corp. , together with its subsidiaries, engages in exploration, pre-extraction, extraction, and processing uranium and titanium concentrates in the United States, Canada, and Paraguay. Uranium is a naturally occurring element with an average concentration of 2.8 parts per million in the Earth’s crust. Uranium is also present in oceans around the globe but in very low concentrations. It is assigned the chemical symbol U on the periodic table of elements.

Of course, these large mining companies are not the last word in the market. In fact, there are quite a few mid-tier and junior uranium exploration companies that investors may want to discover. As a starting point, check out our list of the top-performing TSXV- and TSX-listed stocks and our list of the biggest ASX-listed uranium stocks. It appears that uranium stocks are on the rise since countries around the world have begun investing more money and resources into uranium mining.

The value of a CFD is the difference between the price of the shares at the time of purchase and their current price. CFDs allow traders to speculate on the price of companies involved in the uranium industry. Factors such as company management and the overall stock market can affect these trades. There are many publicly traded companies that mine, process and sell uranium.

Futures are financial contracts that obligate the buyer to purchase (or the seller to sell) an asset like a physical commodity or financial instrument at a predetermined future date and price. For investors who want exposure to the uranium market, but crave the diversity of a basket of equities instead https://g-markets.net/helpful-articles/what-does-pip-mean-in-stock-trading/ of single stocks, exchange-traded funds (ETFs) are generally the way to go. The selection of uranium-focused ETFs isn’t very wide, but luckily for investors the options are growing. Uranium’s value started to rise in the last quarter of 2021, hitting a nine-year high of $48/lb in September.

how to invest in uranium

Humanity, not wanting to abandon technological development, will eventually have to undergo an energy transition within the framework of ecology and adopt the most effective and safest energy solutions. Such solutions are provided by nuclear power plants, in which uranium is the main component of nuclear fuel. Just over a decade ago, Japan was considered the apex of the global nuclear energy boom.

Contracts for Difference (“CFDs”) are leveraged products and carry a significant risk of loss to your capital, as prices may move rapidly against you and you may be required to make further payments to keep any trades open. These products are not suitable for all clients, therefore please ensure you fully understand the risks and seek independent advice. NexGen Energy (NGX.US) is a Canada-based corporation with a focus on the acquisition, exploration and development of Canadian uranium projects.

This, combined with the company’s ownership of Nichols Ranch ISR and Alta Mesa ISR projects, highlights Energy Fuels Inc as a potentially strong stock option for investors. Cameco has a market cap of US$10.99 billion and is expanding its reach rapidly; in November 2022, the company made a deal with one of the largest Chinese nuclear power operators, China National Nuclear Corporation. BHP remains a highly viable stock option for investors thanks to the company’s proactive resource profile expansion. It continually explores new opportunities in uranium as well as silver, gold, and copper, among other assets. The company is heavily invested in uranium exploration, both through its operations and investments in various projects across Australia and Canada. BHP has a robust balance sheet and a market cap of US$166.74 billion.

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