The main use of uranium today is for fuel in nuclear power plants. Uranium is also used by the military for special ammunition and to improve the metal armour used on tanks and other armoured vehicles.
Despite potential drawbacks and the controversy that surrounds it, Uranium does have a few advantages over some other energy sources, such as no greenhouse gases, reliability and expense.
We need less Uranium to produce the same amount of energy in comparison to oil or coal. Uranium is also less expensive to procure and transport.
Tree biggest producers of Uranium are Kazakhstan with 39% of world production, followed by Canada and Australia.
The Uranium as a “boom and bust commodity” has been facing difficulties since Fukushima disaster dropping from all-time high at $71.72 to all-time low at $17.52.
Current production is at 93% of worlds’ demand.
But recent supply cuts from major producers have raised optimism and expectations of higher prices.
Morning Star expects global uranium demand to rise roughly 40% by 2025.
Market watchers are positioning themselves for a potential global uranium boom.
As the need for clean energy grows, investing in uranium could be an opportunity.
There are three options to consider on how and where to invest in uranium market:
Those who are looking for stocks may want to take under consideration mining companies, exploration companies and companies focused on the countries that produce the most uranium.
For those who want exposure to the market but don’t want to invest in a single stock, ETF`s are generally a good choice for them. At the moment, investors can choose between URA, HURA and NLR.
Third option to invest in uranium is the futures market. Here investors have two ways to go about their investments. They can either pursue offers from CME Group, or from NYMEX.
Source, Chart by TradingView
