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 is a truly clean form of energy, and uranium is an essential component of the nuclear fuel needed to power nuclear reactors. See our full guide to trading uranium, or start your research with reviews of these regulated brokers available in that offer access to energy markets. However, after World War II, countries also began seeking peaceful uses of nuclear energy. In the early 1950s, American researchers successfully lit four light bulbs using nuclear power, and by 1957, the first nuclear power plant began operating in the United States. For all you know, the Sprott Physical Uranium Trust ETF could turn out to be one of your biggest winning uranium stocks in the long run.

In 1896, the most important scientific discovery related to uranium occurred. French physicist Antoine Henri Becquerel placed a small quantity of uranium on to an unexposed photographic plate, and the plate became cloudy. In 1841, Eugène-Melchior Péligot, a French chemist, finally succeeded in isolating pure uranium.

It boasted dozens of nuclear power plants, minimizing the mineral-bare country’s reliance on imported energy sources like coal and fossil fuel. 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. UEC stock is up 102% in the last 12 months despite the sharp drop in uranium prices in early 2024. A key reason for the stock price growth was that the company transitioned from being a developmental and exploration company to production in 2023. This allowed the company to take advantage of the rising price of uranium.

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. 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). 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. One option is the Global X Uranium ETF, which tracks national and international mining and production firms.

Uranium in 2024: A Guide to The Commodity’s Price, Value, and Uses

Phosphate rocks, lignite and monazite sands also contain the element. Read on to learn about the uranium ETFs and related vehicles on offer. Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. join pro or pro plus and get lifetime access to our premium materials He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more. This is another concentrated, mostly international portfolio with just 37 holdings at present. It’s mighty top-heavy too, though the exposure is spread around a little bit more at the very top than URA.

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Even Japan, which swore off nuclear power after the 2011 Fukushima disaster, approved a policy in 2023 that will extend the operations of existing reactors and allow new reactors to be built. 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. More than 30 countries host about 450 commercial nuclear power reactors with an installed capacity of about 400,000 megawatts electric (mWe). In this guide to trading uranium, we’ll explain how and where you can trade this popular commodity, as well as its long term outlook and reasons why some traders choose to speculate on uranium’s value. Melissa Pistilli has been reporting on the markets and educating investors since 2006.

Nuclear Power Demand

The company provides crucial capital to the uranium mining industry while providing easy(ish) access for everyday investors. Hot on the heels of catastrophe, Japan shuttered all of its nuclear power plants. Following the fallout, many major nations follow along, shutting down reactors or rethinking their nuclear plans.

Pay attention when this uranium company speaks

Prices for uranium fell sharply after the 2011 accident at Japan’s Fukushima nuclear power facility. However, demand for uranium is reviving today and is expected to continue, in part, as nations try to meet requirements of international agreements to reduce global warming. Additionally, understanding where these companies’ uranium mines and production facilities are located can help investors make informed decisions.

The value of a CFD is the difference between the price of the shares at the time of purchase and their current price. Trading in futures requires a high level of sophistication since factors such as storage costs and interest rates affect pricing. These are uranium ore samples that have been collected from different areas around the Western half of the United States. On the other hand, your pickings for uranium-focused ETFs are sparse compared to other industries. On Aug. 24, Japan’s prime minister Fumio Kishida announced that his administration would restart seven of the country’s suspended reactors. That brings the country’s total to 17 online reactors (out of 33 operable).

1. In 2021, nuclear power plants produced just 7% of the country’s energy supply.
2. After extraction, the ores from both open pit and underground mines require milling.
3. While a handful of stocks and funds provide direct or indirect exposure, they also come with unique risks both in your portfolio and out.
4. Japan’s announcement represents a significant policy shift to address issues, among them soaring prices, strained supplies and extreme weather.

He also shared advice for investors looking to get into the market, which you can listen to here. Uranium investors can also look into slightly more unusual investment options. Already this year, outlets have reported that Germany is rethinking its decision to shut down its reactors amid a gas shortage. India plans to build a “mega-reactor” to drive its shift from coal to clean energy, while France plans to construct 14 starting in 2028. As elevated fuel prices and extreme weather slam households (and budgets), public opinion appears to be shifting – and taking government policy with it.

Namely, Cameco is near the top at 13.5%, but Kazatomprom makes up 13.7%, and the Sprott Physical Uranium Trust is another 14.5%. Uranium stocks are finally in the news after several years, and you don’t want to miss this opportunity. As populations in these regions migrate from rural areas into cities, demand for power should soar. The Chicago Mercantile Exchange (CME) offers a contract on U308 (triuranium octoxide), the form in which uranium is mostly found in nature. This publicly-listed fund lists units that trade like stocks, with each representing a physical allotment held by Sprott. Japan’s announcement represents a significant policy shift to address issues, among them soaring prices, strained supplies and extreme weather.

As of March 2024, the fund has 50 holdings, including many of the names in this presentation, including Uranium Energy, Cameco Corporation and NextGen Energy. Approximately 60% of the fund’s geographic exposure is in Canada and the United States, with an additional 13% from Australia. The stock is up 21% in the last 12 months despite being down over 4% in 2024. Uranium Royalty is not heavily covered by analysts but has a consensus price target of $5.35, which would result in a gain of over 102% from the stock’s price on March 12, 2024.

Japan isn’t alone – and the country’s shifting stance could compel other nations to reconsider, as well. NexGen has plans for five new projects to be found, permitted, financed, and constructed in the next 20 years. CCJ stock is down 3.6% in 2024 but is still up over 60% in the last 12 months and is finding support around its March 12 price of $41.50. As of October 2023, the company had a strong balance sheet with $213.7 million in cash and cash reserves with no debt. Becquerel deduced that invisible rays emitted from the uranium caused this phenomenon.