The world’s hunger for energy is impossible to satisfy without uranium, so you need to know how to invest in uranium in order to profit from this energy boom. We have yet to discover a reliable energy resource to replace fossil fuel due to carbon dioxide concern. Society has shown acceptance to nuclear power, which is powered by uranium. The price for uranium oxide, or U3O8, has steadily increased throughout the past years. Therefore, if you want to profit of this next generation of fuel, you need to invest in uranium.
- Uranium can be explosive on the market. When uranium moves, it moves fast. Like its energy sector peers, uranium prices fluctuate greatly over a period of time. You need to seize that golden opportunity when investing in uranium.
- Determine your type of investment. There are many ways you can invest in uranium. You need to pick the right one that fits your comfort level. Generally, there are two ways you can invest in uranium: through stocks and exchange-traded funds (ETF).
- Invest in uranium companies. You can invest in a company that directly deals with uranium usage or production. For example, the Cameco Corporation is the world largest public trade company that is incredibly diversified in the nuclear sector. It has both mining operation and power generation. Other companies, like Denison MinesEnergy and Resources of Australia, are also good alternatives.
- Yellow cake ETF can be delicious. Market Vectors Nuclear Energy ETF seeks to replicate the DAXglobal Nuclear Energy Index is a great ETF. It has a great selection of companies in its holding. If you can looking for a way to get exposure to uranium price without the risk of holding an individual company’s stocks, you should consider this ETF.
- Consider other alternatives. There are other alternatives to invest in uranium. You can consider investing in a company that is partially exposed to uranium prices, like General Electric. It is not a pure play, but GE stands to benefit from increasing uranium prices.
- Uranium prices fluctuate greatly on the market. You should take caution before investing.