I recently discovered it's possible to invest in Uranium Ore, via a certain company called Yellow Cake....
Yellow Cake buys and stores Uranium Ore, and its shares are up > 150% over five years. Spot prices of Uranium Ore have more than doubled in three years from $30 a pound to more than $80 today.
NB prices are down from a recent peak....
Personally I am NOT a fan of nuclear power, given that nuclear power plants ALWAYS cost A LOT more than originally planned, and given the very long term toxic legacy of their waste products.
However these recent price moves reflect the fact that the world needs reliable low-carbon electricity NOW and nuclear power is one of the few options available to get there FAST.
And governments, being irrational, and short term in their outlook, often favour nuclear.
So possibly a Vest in Uranium Ore maybe worth considering....?
Or not...?
The main risk with a Vest in Uranium is that there are plenty of stores of untapped uranium oxide out there!
There's about 3M tonnes of known Uranium reserves in Australia and Canada alone, while a country such as the UK will use 10s or 100s of tonnes of Uranium per year for all its nuclear plants, which generate 15% of its electricity....
NB figures for how much Uranium Oxide a nuclear power plant burns vary wildly, but they are in the single figures or tens or tonnes per year per GW, so not that much compared to known reserves.
So we're talking millions of tonnes of ore and at the most thousands of tonnes in demand every year, that's a MASSIVE oversupply compared to demand, meaning miners can probably cherry pick the cheap stuff that's easy to get to for decades to come.
Hence maybe why the prices have come down..... if there is profit to be made, miners will mine more!
And then there's other options
I mean... solar, wind, geothermal, increased efficiencies, hydrogen, there's all sorts of reasons to NOT rely on nuclear reactors.
And not to mention to the threat face in times of war... I mean if Europe goes to war with Russia, do you honestly want to be living near a nuclear power station...?!?
Final thoughts...
No, Vesting in Uranium Oxide is just a TERRIBLE idea!!!
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