For investors who want exposure to the uranium market, but crave the diversity of a basket of equities instead 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. Additionally, understanding where these companies’ uranium mines and production facilities are located can help investors make informed decisions.
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- The grave nuclear disasters our planet has witnessed cannot be understated either.
- Before Russia’s invasion, Ukraine was a key supplier of titanium to the military sector.
- This $3.3 billion ETF holds a broad portfolio of uranium companies – both those that are currently producing, and those that hope to begin producing in the future.
- Another potential motivator is the amount of spot purchasing that producers are doing to cover current contracts.
- The total expense ratio, or TER, of an investment fund is a measure of the fund’s total cost – including buying, selling and administration fees – to an investor.
As the world seeks to combat climate change, there’s a growing focus on low-carbon energy sources to replace fossil fuel resources. A biennial report published by the WNA in 2023 also predicted that world nuclear reactor requirements for uranium would surge to almost 130,000 tonnes in 2040, up from earlier estimates of 65,650. Table 1 below shows the 10 largest uranium-producing mines of 2022 according to the WNA. Once uranium is depleted for energy use, it can be re-purposed for other applications in its less radioactive state. Ships use uranium as a counterweight and it is also found in white label crypto exchange software by wl global solutions ammunition and armoured protective equipment. The total expense ratio, or TER, of an investment fund is a measure of the fund’s total cost – including buying, selling and administration fees – to an investor.
For those comfortable with more advanced investment tools, uranium futures contracts offer a way to speculate on the future price of uranium. Investing in uranium stocks is one of the most direct ways to gain exposure. These are shares in companies that are involved in the exploration, extraction and processing of uranium. Start your research with reviews of these regulated brokers available in that offer uranium mining company stocks, ETFs or derivatives to speculate on its price.
How to invest in uranium stocks
At 31 March 2023, Yellow Cake held 18.8 million lb of U3O8 – equivalent to 14.6% of 2022 global uranium production. Other companies operate in this sector, but each of the stock recommendations for this feature has been suggested for us by an expert investment professional. Remember, that investing in individual stocks comes with no guarantees and that the price of bitcoin shows theres an asset market bubble so how and when will it pop share prices can fall as well as rise. Investing in uranium stocks provides many of the common benefits of the stock market, including liquidity and ease of access. Two of the world’s largest uranium miners, Cameco and Kazatomprom, slashed production to support prices, with little success.
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Uranium investors can also look into slightly more unusual investment options. Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape. Marko has been working on the road for over 5 years, sign up for google partners in google ads altcoins and is currently based in Europe. Alongside writing and editing, Marko works on projects related to online technology and digital marketing.
Uranium ETFs can be a good way to get broad exposure to the uranium ecosystem. Typically, these ETFs provide exposure to a range of companies that are engaged in the mining and production of the commodity meaning that they can reduce stock-specific risk for investors. Tony Dong, MSc, CETF®, is a seasoned investment writer and financial analyst with a wealth of expertise in ETF and mutual fund analysis.
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Another way to trade on shares of uranium companies is through the use of a contract for difference (CFD) derivative instrument. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
But following Japan’s announcement, it appears the world may be ready to reckon with its nuclear power concerns. With long-term demand poised to meet increased production, miners, investors and the future of green energy may be in for a sweet surprise. 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. Hot on the heels of catastrophe, Japan shuttered all of its nuclear power plants. Following the fallout, many major nations follow along, shutting down reactors or rethinking their nuclear plans.
Franco-Nevada is anticipated to deliver a decline in earnings when it reports fourth-quarter results on March 10. Energy Fuels reported revenues of around $40 million in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $45 million. The top-line figure was way higher than the year-ago quarter’s revenues of $0.5 million. Uranium Energy’s shares have gained 7.2% in the past six months against the industry’s 1% dip. In the second quarter of fiscal 2024, the company recorded sales and service revenues of $0.12 million from toll processing services. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Selecting a Brokerage Platform for Uranium Futures
And, as the Russia-Ukraine war has highlighted, modern countries need dependable energy supplies – supplies that, for many, are now threatened or extinguished. In a nuclear reactor, uranium atoms are bombarded by smaller neutron particles and this releases heat energy, which is used to create electricity. Investing in uranium can be a good idea for those looking to diversify their portfolio and invest in a resource with long-term growth potential, especially as the focus on clean energy intensifies. It can be a way to diversify a traditional portfolio of stocks and bonds. ETFs are ideal for investors who want exposure to the uranium industry but prefer a hands-off investment strategy.
As a result, the global nuclear power industry ground to a screeching halt – and dragged the uranium industry with it. Looking ahead, many experts expect uranium prices to continue climbing in the coming years due to the supply and demand dynamics. Analysts at Bank of America, for example, believe that uranium prices could rise to $135/lb by 2026 due to market dynamics and geopolitical factors. That’s because history shows that with this commodity, prices are highly unpredictable.
In a May 2024 interview with INN, Ben Finegold shared his thoughts on uranium’s market dynamics, which he remains very bullish on. Ukraine holds one of Europe’s largest lithium reserves, estimated at 500,000 tons, or approximately 3% of global total reserves. China is the world’s largest producer of titanium, but Ukraine ranks among the top ten for proven reserves and accounts for 7% of global production. Other major suppliers include Russia, Mozambique, Australia, and Canada.
His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues. Geopolitical dynamics add further complications to the supply and demand landscape. Today, Russia is one of the world’s largest producers of uranium and it has been threatening to restrict exports in retaliation for Western sanctions. Uranium’s role in the nuclear energy industry is one reason its price has surged over the last five years. Below are some of the primary avenues for investing in uranium, each with its own unique set of risks and rewards. More than 30 countries host about 450 commercial nuclear power reactors with an installed capacity of about 400,000 megawatts electric (mWe).
However, mining companies come with unique risks, including moral, political, environmental and social responsibility concerns. You may want to research to ensure that the companies you invest in align with your values. 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. Before investing, do thorough research on the company’s financial health, the geopolitical stability of regions where it operates and the overall demand forecast for uranium. CFDs allow traders to speculate on the price of companies involved in the uranium industry.
- One of the most popular ways to buy uranium and related company shares is via an online investing platform.
- In the years since, fears over the radioactive risks posed by nuclear reactors, paired with excess supply, have weighed on prices.
- President Biden’s subsidy is designed to encourage power companies to build more nuclear plants and extend the life of existing ones.
Leveraging extensive proprietary historical databases and deep industry expertise, Nuclear Fuels is well-positioned in a sector poised for significant and sustained growth on the back of strong government support. Nuclear Fuels has consolidated the Kaycee district under single-company control for the first time since the early 1980s. Besides, geopolitical crises in uranium-producing countries can disrupt uranium supply. This can affect global uranium prices and the profitability of uranium companies. The good news is that a nuclear power plant emits virtually no greenhouse gases during nuclear fission.