Another potential option is the Sprott Uranium Miners ETF, which invests in companies based in the U.S., Canada and Kazakhstan. And the North Shore Global Uranium Mining ETF provides broad exposure to mining, exploration, development, production and uranium storage firms worldwide. If you prefer to avoid the perils of stock picking, you can jump into uranium via exchange-traded funds (ETFs). As more countries shift to clean energy, safe, affordable, https://www.bitcoin-mining.biz/ zero-emission nuclear power looks more appetizing every year. And, as the Russia-Ukraine war has highlighted, modern countries need dependable energy supplies – supplies that, for many, are now threatened or extinguished. Uranium ETFs are exchange-traded funds that provide exposure to multiple companies within an underlying global index, such as the Solactive Global Uranium & Nuclear Total Retire Index or North Shore Global Uranium Mining Index.
Its core concentration is developing the high-grade Triple R uranium deposit, which is part of the Patterson Lake South (PLS) project located in the Athabasca Basic. Triple R is the only existing major high-grade deposit in the region found at such a shallow depth. Since Fission Uranium was founded in 2013, the company has made a number of significant discoveries and has won awards for Mining Persons of the Year and Exploration of the Year. In general, the best reason for trading in uranium is to bet on the growing energy needs of the world. 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.
That is, a little more than 40% of the fund is invested in plain ol’ utility stocks – companies such as Constellation Energy (CEG), Public Service Enterprise Group (PEG) and PG&E (PCG). While you can’t invest directly in Sprott’s physical uranium ETF in the U.S., you can buy its mining ETF – the Sprott Uranium Miners ETF (URNM, $56.75). URNM, for the record, was the North Shore Global Uranium Mining ETF until 2022, when Sprott acquired and reorganized the assets. The Global X Uranium ETF (URA, $31.30) is the largest uranium-focused ETF on the market, at $3.0 billion in assets under management. Those assets have soared in recent years, mind you – URA claimed just over $100 million in AUM during the COVID lows before gobbling up assets in more recent years. It’s a small field – these are three of the most pure-play funds in the space, and they still collectively represent just over $5 billion in assets.
Uranium Futures
One of the most popular ways to buy uranium and related company shares is via an online investing platform. Shares can be bought using a general trading account, or via a tax-efficient savings wrapper such as an individual savings account, or ISA. Yellow Cake is a London-quoted public company providing investors with direct exposure to the uranium market through its holding of uranium oxide concentrate (U3O8) and uranium-related commercial activities. “Nuclear is an important part of the carbon-free energy mix because, unlike solar and wind power, it is always ‘on’. President Biden’s subsidy is designed to encourage power companies to build more nuclear plants and extend the life of existing ones. A closer look at the ETF’s meager 28 holdings, however, shows that NLR isn’t quite a pure-play on uranium as you might expect – or at least, not how you’d expect.
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.
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. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.
Because of this, the price of uranium has halved since 2011 and is struggling to regain its peak. It is interesting to note that, while Australia is the third-largest producer of uranium, and it also has the largest amount of uranium resources in the world, nuclear power is banned in the country. This may be due to the concerns surrounding the potential risks that nuclear stations and power plants present to the environment and the health of Australian citizens, which was triggered by the 2011 Fukushima disaster.
Uranium Participation Corp (TSX:U)
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 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. SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S.
Additionally, officials will consider extending the lifespan of existing reactors beyond the current maximum of 60 years. 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. In fact, for many segments of the economy, demand for electricity is inelastic. 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. The value of a CFD is the difference between the price of the shares at the time of purchase and their current price.
As the world moves away from fossil fuels, there will be a greater dependency on nuclear power and renewable sources to meet the world’s energy demands. You should keep on top of market news to monitor the price of uranium and react appropriately to news events that may have an impact on your open positions. With a live account, you will have access to our news and analysis section, which is updated by our https://www.crypto-trading.info/ expert market analysts on a daily basis, as well as exclusive fundamental Morningstar reports and our Reuters news feed. It is even possible to set trading alerts for this type of news via desktop, mobile or tablet device. 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.
- However, knowing how to invest in uranium isn’t quite as straightforward as investing in stocks.
- Top holdings within the ETF include Kazatomprom, Cameco, NexGen Energy, Denison Mines, Uranium Energy Corp and Sibanye Stillwater.
- Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
- They also provide investors with a marketplace to enjoy direct exposure to uranium investments.
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. As populations in these regions migrate from rural areas into cities, demand for power should soar.
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Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK. 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. Nonetheless, the horizon continues to brighten for nuclear energy, and in turn, the small collection of publicly traded uranium stocks … the uranium ETFs that hold them.
With long-term demand poised to meet increased production, miners, investors and the future of green energy may be in for a sweet surprise. Nuclear energy promises to fill these gaps as smaller, safer, more efficient models hit the market. The United States recently buffed its nuclear sector with $30 billion in tax credits to encourage nuclear power. As more countries pour capital into these next-generation investments, the power – and profit – potential could be enormous. This has risen considerably since the start of 2020 but doesn’t compare to its original price of over $70 before the Fukushima disaster struck. Founded in 2003, the company has headquarters in Texas and focuses its projects mainly throughout the southwestern US, in the states of Texas, Wyoming, Arizona, Colorado and New Mexico.
Plus, some funds offer exposure to nuclear or clean energy at large, potentially cushioning volatile uranium prices. Uranium Participation is a Canadian holding company that invests the majority of its assets into uranium, both in the form of uranium oxide in concentrates (U3O8) and uranium hexafluoride (UF6). The company has the investment objective of capital appreciation, with the hope that as the price of uranium increases, so will the value of its holdings. Uranium Participation’s strategy is to invest in uranium holdings rather than entering into short-term derivative contracts, and it also earns income through lending portions of its uranium holdings to third parties on occasion.
Energy Resources is an Australian mining company and a subsidiary of Rio Tinto, which owns roughly 70% of the company. It is one of the largest uranium producers in the world and owns part of the Ranger https://www.topbitcoinnews.org/ Mine along with its parent company. Although mining stopped in 2012, it is still producing material from stockpiled uranium ore, and the Ranger Mine produced 3.8m of uranium throughout 2019.
How to Buy Uranium Stocks
But the best ETFs in the uranium space can provide a few different types of exposure to this rocketing commodity. Melissa Pistilli has been reporting on the markets and educating investors since 2006. She has covered a wide variety of industries in the investment space including mining, cannabis, tech and pharmaceuticals. She helps to educate investors about opportunities in a variety of growth markets.