In 2011, Japan’s Fukushima power plant was hit by a severe earthquake and tsunami in the region, causing the most severe nuclear accident since the Chernobyl disaster. This resulted in the meltdown of its reactors and discharge of radioactive water, forcing residents to evacuate their homes. This publicly-listed fund lists units that trade like stocks, with each representing a physical allotment held by Sprott.
Potentially, the company – as one of the few U.S. nuclear companies with a clean licence situation – could enjoy strong demand from the U.S. nuclear sector in the future. Cameco is also the sole fuel supplier to Bruce Power, which provides 30% of Ontario’s electricity through its nuclear power plant. Online trading is also the Top natural gas stocks 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.
The boom in uranium prices and mining companies between 2005 and 2007 was very dynamic. The Cigar Lake mine still contains the world’s largest undeveloped deposit of high-grade uranium ore. The green energy revolution, reduction of coal and other fossil-based fuels, and expansion of renewable energies provide investors with a unique opportunity to invest in nuclear energy. ETFs are ideal for investors who want exposure to the uranium industry but prefer a hands-off investment strategy.
- SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S.
- This and other information can be found in the Fund’s summary or full prospectuses.
- The Fukushima accident did not cause any fatalities, except for two deaths linked to the incident by the World Health Organisation.
- This can easily happen in a uranium bull market when emotions and euphoria drive stock multiples higher.
You will usually pay brokerage fees to your dealer if you purchase or sell units of the Trusts on the Toronto Stock Exchange (“TSX”) or the New York Stock Exchange (“NYSE”). If the units are purchased or sold on the TSX or the NYSE, investors may pay more than the current net asset value when buying units or shares of the Trusts and may receive less than the current net asset value when selling them. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by Sprott Asset Management LP. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell. The top 10 uranium mining companies accounted for 85 % of global uranium production in 2020.
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. Nuclear power plant meltdowns are incredibly rare, and the risks are declining as technology races to meet the science. But when they do happen, they can be catastrophic – and lead to substantial policy changes. Governments committed to energy system overhauls are fully prepared to pay billions of dollars to make it happen, so high price tags alone are not enough to prevent further nuclear plant development.
According to the International Energy Agency, by 2035 more than 90% of net energy demand will derive from emerging economies. Trading in futures requires a high level of sophistication since factors such as storage costs and interest rates affect pricing. The contract trades globally on the CME Globex platform and has various expiration months. 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. However, these uses are slightly outdated and not practised as much anymore. On the other hand, your pickings for uranium-focused ETFs are sparse compared to other industries.
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This may have the potential to initiate a price rally of uranium on the spot market and the whole nuclear sector. Looking at the historical chart of uranium prices, we can conclude that the commodity is in a cyclical boom and its price is rising exponentially in the face of favourable price drivers. Mercenary geologist Mickey Fulp came to a similar conclusion, as he emphasised that uranium is a boom and bust commodity, meaning that every decade or so the price rises and then falls. The chart below shows a summary of historical bubbles in the price of uranium. Growing demand, coupled with the nuclear market’s excellent prospects and the scarcity of raw material, caused prices to soar.
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. Many investors have been waiting for uranium prices to increase and strengthen the market. As the trend toward clean energy continues, some believe that day is soon to come.
- Canada accounts for a little less than half of net assets, followed by Australia (13%) and South Korea (13%).
- If you have a finger on the pulse of the uranium market, you can try to time your sells as the uranium thesis plays out.
- The European Union has said that it intends to allow nuclear-energy projects to be classified as sustainable investments.
- It is estimated that at price levels of $60 per pound, uranium mining becomes profitable for most uranium miners.
- Big uranium companies stocks like Kazatomprom or Cameco still give good opportunities and prospects for investors who avoid high risk and high volatility in the market.
- It also gives companies like Paladin the ability to refrain from signing long-term contracts in the market today around spot price because, one, it’s too low, and they’re not necessarily in a rush to do so.
Global X Funds are not sponsored, endorsed, issued, sold or promoted by Solactive AG, nor does Solactive AG make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with Solactive AG. All Sector, Industry and Geographic breakdowns, where provided, are based on equity positions held by the ETF and exclude cash, currencies, and other holdings. Below are the mutual funds most exposed to these three securities among those distributed in the United States. Now, the French government only needs the green light from the French stock exchange watchdog, the AMF.
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You can check out his thoughts on the markets (and more) at @KyleWoodley. Like URA, URNM has seen its assets explode in 2021, to nearly $540 million today from roughly $48 million at the end of 2020. Yields represent the trailing 12-month yield, which is a standard measure for equity funds. Compared to its latest closing share price of CAD 4.11, UPC is trading at a discount of 19.9%. In fact, for many segments of the economy, demand for electricity is inelastic.
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The list below lays out the five largest uranium companies by market cap. And then, of course, there’s a bit more juice left, but you don’t have the time to get it out. And that’s what we’re in the process of seeing, which is where you’re going to see both demand for uranium, at least in the short term until this is worked out and there’s more downstream services built in the West. So you’re going to see more near-term demand for uranium but also you’re going to see that historical underfeeding disappear as overfeeding commences. So some of the secondary supply is going to disappear, which could be in the tune of 30 to 40 million pounds, and then you’re going to see overfeeding.
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. 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. 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.
Blue Sky Uranium
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Kyle Woodley is the Editor-in-Chief of Young and The Invested, a site dedicated to improving the personal finances and financial literacy of parents and best high yield dividend stocks children. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more. The uranium ETF’s top five holdings are rounded out with Canada’s NextGen Energy, as well as Australian production firm Paladin Energy (PALAF). If you have a finger on the pulse of the uranium market, you can try to time your sells as the uranium thesis plays out.
Here is a list of brokers that support uranium-related investments and offer research tools to help investors select the right one. In general, futures are highly speculative and are best suited for experienced investors. They offer the potential for high returns but come with significant risks, including the possibility of losing more than your initial investment. Available to investors forex trading fundamentals in the U.S., there are three exchange-traded funds directly exposed to the value of uranium. “In light of the classification of nuclear as sustainable energy in the EU, we may see a new surge in demand for fuels such as uranium, and this could create some interesting investment opportunities. The increase in demand must be met through responsible supply,” says Lomnitzer.
Analyzing Zero-Carbon Goals, Power Infrastructure, The Role Of Nuclear Energy, And How To Invest In Uranium
While Cameco is a well-known uranium producer, it has faced challenges in recent years. Like many companies, it took a hit during COVID-19, temporarily shutting down production at Cigar Lake in 2020. Cameco’s key operations include a 50 percent stake in Saskatchewan-based Cigar Lake, which is considered the most prolific uranium mine in the world. The company also has a 70 percent stake in the McArthur River mine and an 83 percent interest in the Key Lake mill, both located in the province’s Athabasca Basin, which is a prolific uranium jurisdiction. In the company’s 2023 fiscal year, uranium output from the Olympic Dam totaled 3.4 million metric tons (MT) of uranium oxide concentrate, an increase of 1.03 million MT from the previous year’s production. BHP’s Olympic Dam mine in Australia is one of the largest uranium deposits in the world.