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Follow industry experts, news outlets, forums, and social media discussions related to uranium futures. Gain insights from experienced traders and make informed decisions based on a combination of fundamental and technical analyses. Following the invasion, Ukraine, where there are 15 reactors, rushed to sign a 12-year supply agreement with Canada. Meanwhile, operators in Finland and Eastern Europe were hit the hardest, as they owned Russian-made reactors—which only Russian companies knew how to supply. It took a year to find an American competitor capable of packing the uranium rods into the hexagonal blocks required by these plants. As the world economy expands, demand for power should grow, and uranium prices should respond favorably.
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. We had a boom in aluminium, copper, building https://forex-reviews.org/ 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.
Basics of Uranium Investing
This situation is a big opportunity not only for investors, but also for day traders, who are using leverage to take large profits even on short positions. Trading uranium stocks is not possible during weekends because the market is closed. When the market is open, prices of stocks companies and ETFs are of course constantly fluctuating during trading hours. ISR uranium mining was first used in the 1960s, and by 2017, its use provided more than 50% of global uranium production. However, the ISR mining method can only be used in particularly favourable geological conditions. The storage of uranium is also an additional, big challenge for investors.
- Because of this, the price of uranium has halved since 2011 and is struggling to regain its peak.
- On average, the company has the capacity to produce more than 53m pounds of uranium concentrates annually.
- Following the fallout, many major nations follow along, shutting down reactors or rethinking their nuclear plans.
The market size has been increasing because of several factors, such as growing consumer awareness, advancements in technology, and the emergence of new applications for that technology. Below are the mutual funds most https://forexbroker-listing.com/ exposed to these securities among those distributed in the United States. The United Nations forecasts that by 2030, there could be a 36% increase in the number of global cities with populations over 1 million people.
Stocks like Kazatomprom (KAZ.UK) or Cameco (CCJ.US) are well known and also sometimes pay dividends. This may have the potential to initiate a price rally of uranium on the spot market and the whole nuclear sector. Growing demand, coupled with the nuclear market’s excellent prospects and the scarcity of raw material, caused prices to soar.
How to invest in uranium ETFs?
Please note that XTB UK only offers trading CFD uranium stocks and not investing in stocks. Physical uranium resources on land are sufficient for humanity for about 300 years at the current demand. Currently, there are a growing number of mining uranium projects because uranium deposits are important for the long-term energy future of our planet. Although uranium mining is a global activity, only a handful of companies account for the majority of production. 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.
How to invest in uranium stocks?
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. Instead of going all-in on uranium, Q.ai offers a variety of Investment Kits to help you reach your goals. For instance, the Clean Tech Kit lets you invest in the future of zero emissions (and sleep well doing it).
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. Another potential option is the Sprott Uranium Miners ETF, which invests in companies based in the U.S., Canada and Kazakhstan.
US Domestic Production
An effective way to diversify your portfolio can be through ETF trading. Exchange-traded funds track the performance of major global indices in order to provide investors exposure to companies that are involved in uranium production and nuclear generation. Learn about two significant ETFs that we offer on our platform in order to take advantage of this growing investment theme.
Evaluating Uranium & Nuclear Energy ETFs
With Cameco also ending the third quarter with solid financials including $1.4 billion in cash versus only $1 billion in debt, I think Cameco stock is a solid buy right now. Trading in a critical resource such as uranium is a way to add diversification to a portfolio. Many of the factors that move demand for nuclear power are different https://forex-review.net/ than the factors that affect stock and bond prices. 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. Uranium is a non-renewable resource that is mined in many countries.
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. Uranium is an important energy sector commodity, and its rising value is attracting investor interest. For instance, in March, France’s parliament voted in favor of President Emmanuel Macron’s nuclear investment plan – part of a $56 billion initiative that would see six new reactors built. A month later, Finland finally saw its long-delayed Olkiluoto 3 reactor start regular production.
The CME Group (CME) offers UxC uranium U3O8 futures, which track the price of uranium. High volatility could be influenced by publishing important political or company news or financial results. Uranium mining companies’ stocks are sometimes extremely volatile and price action during one trading day can be even bigger than 10%.