These materials have found applications in nuclear power plants and in submarine propulsion. The nuclear sector currently accounts for 11% of the world’s electricity generation and 60% of clean energy respectively. There’s also the Uranium Royalty Corporation, which makes physical uranium purchases and invests in uranium-based companies in exchange for royalties.
In 2020, the company’s destruction of the Juukan Gorge sacred caves in Australia caused public backlash and Rio Tinto’s CEO decided to step down. Follow news regarding the price of uranium and developments within the nuclear industry. Natural disasters, climate change and new regulations against non-renewable types of energy will all have an impact on uranium-focused stocks. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
For almost a decade, uranium was not a fashionable commodity among investors, but since 2000 we have actually had two speculative bubbles on uranium, the largest of which occurred between 2005 and 2007. The subsequent rises in uranium were halted by the Fukushima power plant accident and global criticism of nuclear power. It is possible to install very efficient small reactors in such machines, which would provide them with energy for many years. Kazatomprom is the Kazakhstan national uranium company and the largest global producer of uranium. It explores for and mines uranium deposits and manufactures power plant fuel.
We had a boom in aluminium, copper, building materials, steel and other raw materials. But it turns out that uranium with its current spot price at around $50 is still almost three times cheaper than it was at the peak of the 2007 bull market. The VanEck ETF therefore has exposure to the nuclear sector, not just uranium mining companies.
This is dissimilar to other raw materials such as gold, silver or crude oil, which traders can purchase and store. Uranium Participation is a Canadian holding company that invests the majority of its assets into uranium, both in the form of uranium oxide in concentrates and uranium hexafluoride . The company has the investment objective of capital appreciation, with the hope that as the price of uranium increases, so will the value of its holdings. 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.
The field has been marked by booms and busts and its direction can change sharply on shifts in public policy and sentiment toward nuclear power, especially in the wake of disasters such as the 2011 Fukushima meltdown. Since 2011, Japanese public opinion toward nuclear energy and expansion has soured. In 2021, nuclear power plants produced just 7% of the country’s energy supply. 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 North Shore Global Uranium Mining ETF is made up of a basket of companies that are involved in the mining, exploration, development and production of uranium.
Portfolio Diversification
According to analyses, renewables can also be unexpectedly inefficient, often generating only 30 or 40 percent of their expected output. In a world where demand for energy is growing exponentially and humanity is facing an energy and resource crisis, renewables are likely to prove insufficient and not effective enough even in the long term. It turns out that reactors with an assumed lifespan of 40 years can operate for as long as 60 years, and there is talk of extending the lifespan of some to 100 years. This may constitute a potential additional demand for uranium, which so far has not been included in any calculations and analyses. 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.
There are a lot of rumours about fuel technology and Small modular reactors . Uranium is the main component of the majority of energetic and modern nuclear fuels (in combination with e.g. thorium or plutonium). The recognition of uranium as an element is credited only to chemist Martin Heinrich Klaproth. Klaproth also deliberately tinted glass with uranium, thereby starting a new fad for uranium glass as a household art item. In 1789 he announced the discovery of a new element and named it uranium, referring to the earlier discovery of the planet Uranus by the astronomer William Herschel.
Uranium ETFs: An Emerging Market and Opportunity
Two of the world’s largest uranium miners, Cameco and Kazatomprom, slashed production to support prices, with little success. Nuclear energy promises to fill these gaps as smaller, safer, more efficient models hit the market. The United States recently buffed its nuclear sector with $30 billion in tax credits to encourage nuclear power. As more countries pour capital into these next-generation investments, the power – and profit – potential could be enormous. As a third option, investors can look to the futures market while awaiting a rise in the uranium price.
Uranium is a natural, non-renewable resource that is used as an alternative energy source to typical fossil fuels such as coal and natural gas. It is a highly unstable element used in nuclear power plants across the world. Although it is a commodity, uranium cannot be traded directly due to its radioactive nature. Instead, investors can gain exposure to uranium through stocks and exchange-traded funds that represent companies involved in the mining and production of uranium.
The company vows to safely and reliably produce uranium and nuclear fuel products to generate electricity at worldwide nuclear reactors. It is estimated that at price levels of $60 per pound, uranium mining becomes profitable for most uranium miners. This means that almost 200 new nuclear reactors would have to be built. India and Korea are also interested in evolving their nuclear energy. China and India have a combined population of more than 2.5 billion, which means the demand potential in those markets is extremely high. The global demand for nuclear power and uranium stocks is growing rapidly.
One option is the Global X Uranium ETF, which tracks national and international mining and production firms. You also have the Van Eck Market Vectors Uranium + Nuclear Energy ETF, a market cap-weighted index of uranium players. Already this year, outlets have reported that Germany is rethinking its decision to shut down its reactors amid a gas shortage. India plans to build a “mega-reactor” to drive its shift from coal to clean energy, while France plans to construct 14 starting in 2028. We offer over 9,000 shares and ETFs to trade, including those involved in the extraction, mining and dispersal of uranium. The content on this website is provided for informational purposes only and isn’t intended to constitute professional financial advice.
How to Invest in Uranium (Updated
This mine produced 6% of total global supply in 2019 with estimates of 347,000 tonnes of contained uranium oxide. Rio Tinto is an Anglo-Australian mining company with headquarters in London. As well as being one of the largest global producers of uranium, it is also one of the largest companies in the UK by market capitalisation and is considered to be of blue-chip status. As well as uranium, Rio Tinto explores, mines and refines other precious metals and commodities such as gold, diamonds, copper, aluminium and iron.
As more countries seek to curb pollution while meeting energy demand, nuclear power demand could grow. Online trading is also the easiest, has the most favourable charges conditions and allows you to customise your personal investment strategy by choosing CFDs on uranium ETFs or shares of uranium companies. The CFD type of uranium ETFs investment is a financial contract that you trade to earn the price difference between your open and closed positions.
Uranium’s big comeback
The main processing steps for uranium extraction take place deep underground (hence the term “in-situ”), resulting in lower production costs and inherently higher levels of health and safety due to very low mining risks. Once the resources are exhausted and the mining operations are completed, remote areas of the Kazatomprom mine are restored to their pre-mining condition, both above and below ground. Using ISR technology, mining is done without blasting and without sending miners underground to bring uranium ore to the surface. The solution, containing the dissolved uranium, is brought back to the surface through “production wells”.
All you have to do is build a portfolio of Kits and leave the rest of portfolio management to AI.Download Q.ai today to start investing. Currently, futures are crucial to uranium markets establishing a semblance of price transparency and expectations. They also provide investors with a marketplace to enjoy direct exposure to uranium investments. Founded in 1885, it is an Anglo-Australian metals and petroleum producer that has headquarters in Melbourne. Aside from uranium, BHP also focuses on the extraction and production of commodities such as iron ore, copper, coal, petroleum and nickel. It owns the Olympic Dam mine in Australia, which is one of the largest uranium deposits in the world.
Although mining stopped in 2012, it is still producing material from stockpiled uranium ore, and the Ranger Mine produced 3.8m of uranium throughout 2019. ERA sells its product to electric utility companies across Asia, North America and Europe. The company has previously come under fire for over 200 environmental incidents that have occurred at the Ranger Mine. Unlike other commodities and raw materials such as gold, silver and crude oil, it is not possible to invest in or trade on physical uranium, due to its radioactive nature. Instead, an alternative way of gaining exposure to this commodity is via the stock market. Following this disaster, Japan’s nuclear power production dropped from 30% to just 2%.
The percentage of isotope U235 in natural uranium is 0.7%, which is too low for many applications. 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). Austrian physicist Lise Meitner, working with Otto Hahn, understood the phenomenon. In the early 1930s, physicists discovered that if you bombard atoms with neutrons, radioactive decay occurs. The atoms release the neutrons and turn into slightly lighter elements.