Instead, an alternative way of gaining exposure to this commodity is via the stock market. Uranium is a radioactive material that can be located and extracted in many countries throughout the world. It is part of the process of powering nuclear fission, which bitcoin for beginners accounts for over 10% of the world’s electricity.
This means that if the price of your stock drops due to factors mentioned above, such as company earnings reports or a natural disaster that has affected the supply of uranium, this may result in losses. An alternative way of investing is to take a position on a stock using derivative products, such as spread bets and CFDs. Constellation Energy (CEG -2.44%) is a large competitive power producer, which means it sells power on the open market instead of being a regulated utility. So far this year, Uranium Energy hasn’t produced uranium but is instead buying yellowcake from the spot market in a bid to sell it later to make some money off rising uranium prices. Now that’s a move based purely on speculation about spot uranium prices, and not the kind of business strategy I’d put my money on. Two of the world’s largest uranium miners, bitcoin margin trading usa bitcoin margin trading binance reddit Cameco and Kazatomprom, slashed production to support prices, with little success.
Sprott Junior Uranium Miners ETF (NASDAQ:URNJ)
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. The price has since recovered, and a nuclear revival would likely be highly supportive of higher prices over the longer term. But investors need to go in with the clear understanding that Cameco’s business has historically been fairly volatile. Wall Street believes this could be the sign of the rebirth of nuclear power. As mentioned, that backdrop is helping uranium ETFs and related products gain steam.
- This includes the manufacturing of equipment, as well as extraction and refining of the element.
- The big draw around nuclear power is that it doesn’t produce the gases that promote global warming.
- There is also increasing demand for uranium from China and India as both these countries grapple with air pollution in the face of growing electricity demand.
- Hot on the heels of catastrophe, Japan shuttered all of its nuclear power plants.
Physical uranium investment funds
As more countries shift to clean energy, safe, affordable, zero-emission nuclear power looks more appetizing every year. And, as the Russia-Ukraine war has highlighted, modern countries need dependable energy supplies – supplies that, for many, are now threatened or extinguished. Launched in 2021, ANU Energy is a privately owned physical uranium investment fund that boasts Kazatomprom as a seed investor. The fund is “planning a public or private placement of up to $500 million, but has not said when,” reported Reuters in February of this year.
On Aug. 24, Japan’s prime minister Fumio Kishida announced that his administration would restart seven of the country’s suspended reactors. That brings the country’s total to 17 online reactors (out of 33 operable). Additionally, officials will consider extending the lifespan of existing reactors beyond the current maximum of 60 years. Historically, uranium compounds were used as a colouring agent for household items, such as glassware, ceramics and glazes, and as mordants for electric conductors such as lightbulbs.
Sprott Physical Uranium Trust Fund
Uranium investors can also look into slightly more unusual investment options. As elevated fuel how to buy ethereum stock prices and extreme weather slam households (and budgets), public opinion appears to be shifting – and taking government policy with it. He also shared advice for investors looking to get into the market, which you can listen to here. Believers include John Ciampaglia, CEO of Sprott Asset Management, who sees many extremely bullish factors shaping today’s uranium market.
Southern Company’s new nuclear units (Vogtle 3 and 4), for example, were years late and billions over budget. The VanEck Vectors Uranium + Nuclear Energy ETF launched in 2007 and tracks a market-cap-weighted index of stocks in the uranium and nuclear energy industries. Concentration risk is often a factor in smaller industry and thematic funds, and that’s absolutely the case for URA. And the top five holdings – which include Canada’s NexGen Energy (NXE) and Kazakhstan’s Kazatomprom, the world’s largest uranium producer – make up roughly two-thirds of URA’s weight.
As the need for clean energy grows and uranium oversupply diminishes, demand for the energy fuel is likely to grow. Investing while uranium stock prices have room improvement could offer an opportunity. Looking at the numbers, nuclear energy currently provides 10 percent of the world’s electricity. In December, the United States and more than 20 other countries committed to tripling nuclear power capacity by 2050 to achieve net-zero carbon emissions in an effort to combat climate change. “I do feel as though we’re in year three of this cycle,” said John Ciampaglia, CEO of Sprott Asset Management. However, he noted that prices will have to rise further before uranium companies will be incentivized to bring more supply online.