Uranium Energy Corp is a New York-listed ‘pure play’ uranium mining company developing the next generation of low-cost, environmentally ‘in-situ recovery’ (ISR) mining projects. With a market cap of $38.4 billion (15 December 2023), Nasdaq-listed Constellation Energy is the third largest power company in the US and the largest producer of carbon-free energy. It operates 21 nuclear reactors and part-owns two others, along with hydro, wind and solar plants. With growing global interest in carbon-free sources of energy, nuclear power has enjoyed something of a renaissance in recent years. This has led to rising prices for uranium, the radioactive chemical element which, in processed form, is central to the workings of a how to stake atom on coinbase nuclear power plant. 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.
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By their niche nature, uranium companies will not form part of every actively-managed fund as their inclusion or omission will be down to the remit of each fund. The section above highlights a pair of uranium funds as suggested by our investment experts. As well as being in plentiful supply, the infrastructure surrounding these latter sources is faster to bring online compared with building new nuclear reactors, potentially rendering the latter obsolete more quickly than expected. 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.
Even Japan, which swore off top bitcoin and other crypto payment processor nuclear power after the 2011 Fukushima disaster, approved a policy in 2023 that will extend the operations of existing reactors and allow new reactors to be built. For instance, in March of last year, 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. 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.
How to invest in uranium futures
For example, if the pound strengthens against the euro, then euro-denominated shares will be worth less than their sterling equivalent. With a 20% rise in its price from the start of the year, uranium moved into bull market territory in September 2023 when its value scaled the $60 per pound mark, the first time since 2011. Table 1 below shows the 10 largest uranium-producing mines of 2022 according to the WNA. First, we provide paid placements to advertisers to present their offers. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market.
You want to own some uranium in your portfolio; nuclear’s potential is enormous. But I’ve seen what happens with uranium stocks – fortune favours the patient. The uranium spot price went from around $7 per pound at the turn of the century all the way to $140 in 2006 – when it moves, it moves fast. Despite all the current excitement, it’s not as though there is a sudden rush to build more nuclear reactors (or if there is, I’ve missed it). There have been many false dawns in the uranium market – there was one in 2020. That is why everyone should own some uranium in their portfolio – because of its silver bullet potential.
The higher the interest in uranium, the larger the number of its units the Sprott Fund should be able to sell. And as the number of units it sells rises, it’ll have to buy as much of the underlying commodity — which is uranium in its case — to hold against those units. That’s pretty much the only thing spot uranium prices require to keep moving higher.
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It’s such an obvious solution and investors will want to invest in it – that investment will enable us to get there quicker. Now the uranium price and uranium stocks are rising again and, worryingly, uranium is all over the investment news. The Global X Uranium ETF tracks a basket of uranium miners, as well as nuclear component producers. The fund has an expense ratio of 0.69 percent and has achieved a yearly return of 39.33 percent. After years of dormancy, the uranium spot price zoomed past the US$100 per pound level in early 2024 on supply risks and a strong outlook for long-term demand.
- Currency exchange rates are constantly changing which may affect the value of the investment in sterling terms.
- Yields represent the trailing 12-month yield, which is a standard measure for equity funds.
- The uranium market has faced difficulties since the 2011 Fukushima nuclear disaster, when tsunamis brought on by a massive earthquake crashed into and damaged several Japanese nuclear reactors.
- As elevated fuel prices and extreme weather slam households (and budgets), public opinion appears to be shifting – and taking government policy with it.
Melissa holds a bachelor’s degree in English education as well as a master’s degree in the teaching of writing, both from Humboldt State University, California. SmartAsset Advisors, LLC („SmartAsset“), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. If you prefer to avoid the perils of stock picking, you can jump into uranium via exchange-traded funds (ETFs). However, mining companies come with unique risks, including moral, political, environmental and social responsibility concerns.
Japan isn’t alone – and the country’s shifting stance could compel other nations to reconsider, as well.
Profit and prosper with the best of Kiplinger’s advice on investing, taxes, retirement, personal finance and much more. Also, Uranium Energy now doesn’t need to build a plant at its Reno Creek project anymore given its proximity to Wyoming assets, thereby saving the company upfront capital that it can put to use elsewhere. Uranium stocks are finally in the news after several years, and you don’t want to miss this opportunity. As populations in these regions migrate from rural areas into cities, demand for power should soar. The value of a CFD is the difference between the price of the shares at the time of purchase and their current price. The Chicago Mercantile Exchange (CME) offers a contract on U308 (triuranium octoxide), the form in which uranium is mostly found in nature.
The only uranium growth stock you could risk buying
One of the easiest ways to invest in uranium is through uranium-related stocks. Big mining and production companies like Cameco, Kazatomprom, BHP and Rio Tinto all offer uranium exposure in the stock market. You can also invest in smaller or more niche companies like Uranium Energy Corp and Yellow Cake PLC. Of all the uranium-focused funds, this one has created the most buzz.
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Then, in March 2011, a record-breaking earthquake sent a 46-foot wave crashing into Japan’s Fukushima Daiichi nuclear power plant. The wave knocked out emergency generators and sent several of the plant’s uranium cores into partial meltdown. Uranium companies large enough to be a component of a particular stock index will always form part of a tracker fund designed to replicate the performance of the index in question. Index funds invest in companies in proportion to their respective sizes within the index concerned.
The recent launch of the world’s largest physical uranium exchange-traded fund (ETF), the Sprott Physical Uranium Trust Fund (SRUU.F 5.58%) has been an even bigger catalyst. Investing in uranium allows investors how to convert an android app to an ios app and vice versa to participate and potentially profit from a perceived global shift toward nuclear power driven in part by concerns about global warming. Uranium can’t be traded like other commodities, but investors can purchase shares in a number of public companies involved in mining, processing and trading the mineral. Exchange-traded funds that invest in baskets of uranium- and nuclear-related companies provide a convenient way to acquire a diversified uranium portfolio. Futures are an important part of the market as there is currently no exchange-listed, transparent price instrument that consumers and suppliers can use to manage prices and risks.