Cameco is a Canadian company that has been publicly traded since 1991. Its shares can be bought and sold via both the Toronto Stock Exchange (ticker, CCO) and the New York Stock Exchange (CCJ). You should always check with the product provider to ensure that information provided is the most up to date.
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Meanwhile, uranium, the key ingredient to nuclear power, has gone through 15 years of under-investment, shunned since the bubble of 2006, when another looming energy crisis, (around the “peak oil” narrative) sent it moonwards. Exchange-traded funds (ETFs) are one of the fastest-growing investment vehicles, and as uranium’s rebound continues to build, investors are becoming increasingly interested in uranium ETFs and related products. One of the key issues with nuclear energy is the risk of catastrophic accidents, such as Chernobyl in 1986 or Fukushima in 2011. Nuclear energy also poses problems for investors looking for investments that are ethical, social and governance-compliant.
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. Yet this could just be the beginning of the rally in uranium stocks, and while it could be a bumpy ride, here are the best three uranium stocks you could buy right now to play along.
And the top five holdings – which include Canada’s NexGen Energy (NXE) and Kazakhstan’s Kazatomprom, the world’s largest uranium producer – make up roughly two-thirds of URA’s weight. As I hinted earlier, the Sprott Fund has had a major role to play in the recent rally in uranium prices as it’s been buying uranium aggressively from the spot market ever since its launch in July. As of Nov. 26, the fund had accumulated apl btc bitmart advanced chart nearly 41 million pounds of uranium, versus only 18.3 million pounds on July 31. So far this year, Uranium Energy hasn’t produced uranium but is instead buying yellowcake from the spot market in a bid to sell it later to make some money off rising uranium prices.
Blue Sky Uranium Provides Update on Activities and Informs About New Positive Investment Legislation in Argentina
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 influence of a single ether bond on assembly orientation and miscibility different than the factors that affect stock and bond prices. Additionally, understanding where these companies’ uranium mines and production facilities are located can help investors make informed decisions. Those interested in uranium stocks may want to look at the countries that produce the most of the metal. The three top uranium-producing countries are Kazakhstan, Canada and Namibia.
The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. Lifted lockdowns and extreme weather around the globe increased demand for fossil fuels, while the Russia-Ukraine war dramatically slashed supplies. Since Japan suffers a dearth of native fossil fuels and isn’t connected to mainland power, the country’s imported energy costs have soared. By 2010 it looked like a bottom had been found at around $40 and the price rallied to $70.
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These are among numerous long-term drivers – but they’re not the whole story behind the rapid rise in uranium prices, which have more than tripled over the past three years ago and are up more than 16% for the year-to-date in 2024. Much of uranium’s buoyancy can be chalked up to rising demand, yes, but also constrained supply. Years of low prices forced many smaller uranium miners to shut down or throttle down production, and larger litecoin price chart market cap index and news miners have spent precious little in capital expenditures to improve their operations. Looking at the numbers, nuclear energy currently provides 10 percent of the world’s electricity. In December, the United States and more than 20 other countries committed to tripling nuclear power capacity by 2050 to achieve net-zero carbon emissions in an effort to combat climate change. Of course, these large mining companies are not the last word in the market.
- Then, in March 2011, a record-breaking earthquake sent a 46-foot wave crashing into Japan’s Fukushima Daiichi nuclear power plant.
- But when they do happen, they can be catastrophic – and lead to substantial policy changes.
- This has led to rising prices for uranium, the radioactive chemical element which, in processed form, is central to the workings of a nuclear power plant.
- He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
At $45/lb that’s $624m, plus another $90m in cash and assets, so $714m. At a $1.36 exchange rate that gives us a net asset value (NAV) of around £455m. But many of the developers don’t actually do anything, they just sit on assets and raise money when the market gets hot – such as now. They are not going to start building mines until there is a change in regulation.
Uranium Energy also has other diversified holdings of uranium assets including one of the largest physical uranium portfolios of US-warehoused U3O8. NexGen is listed on both the Toronto Stock Exchange and New York Stock Exchange under the ticker NXE and the Australian Securities Exchange under NXG. 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 share prices can fall as well as rise. 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.
Our Pick Of The Best Uranium Stocks, Funds And ETFs
They also provide investors with a marketplace to enjoy direct exposure to uranium investments. URA provides comprehensive exposure to the niche uranium industry, with its portfolio of 48 stocks spanning miners, refiners, and manufacturers of equipment for both uranium companies and nuclear-facility firms. Although uranium prices are widely believed to be on a long-term upswing, risks of uranium investing remain.
Believers include John Ciampaglia, CEO of Sprott Asset Management, who sees many extremely bullish factors shaping today’s uranium market. 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). And for those who want to invest in precious mined goods, our Precious Metals Kit provides all the shiny exposure you need. Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth. That will come eventually but, as I say, I have seen too many false dawns.
One of its holdings is the Sprott Physical Uranium Trust, a fund that invests solely in physical uranium. As mentioned, it’s been credited with helping to boost prices and has become a popular investment vehicle. Uranium is a non-renewable resource that is mined in many countries. Kazakhstan, Canada and Australia are the major producers of uranium, while the United States is the biggest user of it. Prices for uranium fell sharply after the 2011 accident at Japan’s Fukushima nuclear power facility.
There are many publicly traded companies that mine, process and sell uranium. Futures are a derivative instrument through which traders make leveraged bets on commodity prices. If prices decline, traders must deposit additional margin in order to maintain their positions. He also shared advice for investors looking to get into the market, which you can listen to here. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors. Download Q.ai today for access to AI-powered investment strategies.
In fact, there are quite a few mid-tier and junior uranium exploration companies that investors may want to take a closer look at. As a starting point, check out our list of the top-performing TSXV- and TSX-listed stocks and our list of the biggest ASX-listed uranium stocks. Unfortunately, uranium isn’t investment-grade in the same way that beef or gold is. While a handful of stocks and funds provide direct or indirect exposure, they also come with unique risks both in your portfolio and out. Aside from uranium exposure and liquidity, you’ll enjoy extra benefits like automatic diversity. Plus, some funds offer exposure to nuclear or clean energy at large, potentially cushioning volatile uranium prices.
Now that’s a move based purely on speculation about spot uranium prices, and not the kind of business strategy I’d put my money on. The price of uranium is likely to be influenced heavily by trends in nuclear power usage for electricity generation. The World Nuclear Association projects a 30% increase in electricity generation from nuclear power by 2030 and a 35% increase by 2035. “I do feel as though we’re in year three of this cycle,” said John Ciampaglia, CEO of Sprott Asset Management. However, he noted that prices will have to rise further before uranium companies will be incentivized to bring more supply online. The price of uranium has strengthened in recent years, leaving investors wondering how to enter the market.
As more countries pour capital into these next-generation investments, the power – and profit – potential could be enormous. Unfortunately, uranium also has a dark side, as the 2011 earthquake-tsunami-Fukushima reactor meltdown trio illustrated. Following the catastrophe, Japan shuttered its nuclear power plants, with many countries following suit or re-evaluating their own nuclear plans. Many people know uranium as the primary fuel for nuclear power plants. Uranium’s radioactive properties allow it to produce massive amounts of emissions-free energy at greater reliability than wind and solar. It is currently trading at £3.60 which gives it a market cap around $550m.