Uranium Continues to Gain Momentum From Retail Investors

More retail investors are realizing the growth potential that uranium can bring to their portfolios. The global shift to alternative energy sources is certainly the prime catalyst. However, word amongst retail investors can circulate quickly with the advent of social media.

“There are real uranium fans, you can see it on Twitter . . . it’s all happening now,” said Rob Crayfourd at CQS New City Investment Managers.

“The uranium market is a bit like trying to turn an oil tanker,” he said. “It’s slow to add supply due to permit timelines but also the demand picture is very slow in the way it shifts, but now we’re seeing a big shift.”

While nuclear energy still has work to do in order to clean up its past in terms of safety, more adoption is taking place on a global scale. That said, more public and private funding could spur new mining projects or continue providing resources to keep current projects running.

“Uranium prices have climbed roughly 50% so far this year to a 12-year high as growing concerns over energy security spurs countries to look again at nuclear energy, an option that had been shunned since the 2011 Fukushima Daiichi meltdowns,” a Nikkei Asia report said.

Get Alternate Exposure via Miners

As demand spikes, the need for miners could also trend higher. That said, investors looking alternate exposure to uranium prices can look at the Sprott Uranium Miners ETF (URNM).

With its 0.83% expense ratio, URNM tracks the North Shore Global Uranium Mining Index. This index follows the performance of companies that devote at least 50% of their assets to the industry. This may include mining, exploration, development, and production, or holding physical uranium, or owning royalties. It could also include engaging in other, non-mining activities that support the mining industry.

Growing trends that support the global movement towards nuclear energy include countries looking to form alliances center around uranium mining. France and Mongolia, for example, are looking to forge a union that will allow both countries to mutually benefit from mining deals.

“Mongolian President Ukhnaa Khurelsukh on Tuesday begins a visit to France where he will discuss uranium mining and sign deals on energy and telecommunications, the Mongolian government said in a statement,” reported Barron’s, adding that both countries will “hold talks on Mongolia’s rich deposits of uranium, which French nuclear firm Orano is seeking to exploit in a deal yet to be approved by Ulaanbaatar.”

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