A good time to Invest in Uranium Oxide...?!?
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!!!
Posted Using InLeo Alpha
I like nuclear power.
I don't think it's a bad investment to put some money there.
Didn't knew it was this opportunity. For now I will stay in cripto, but good to know!
It's an odd one right! I don't like it, it costs a fortune. I just discovered we pay the accounting officer in the Nuclear Decom department £500K a year in salary, going forwards we're possibly looking at hundreds of millions a year just in wages to clean them up. Then there's the toxic waste risk for the next X 1000 years. Terrible idea.
I'll pass on that too. Nuclear never lived up to the hype (too cheap to meter!) and fusion is always decades away. Renewables have a big advantage of cutting the need to import fuel, but a lot of the technology is built in China.
I do think it was a mistake of some countries to scale back existing nuclear after Fukushima. It wasn't like they were all vulnerable to tsunamis and some went back to burning coal instead.
I don't think we need to panic to decommission them, but more green energy and decentralisation for sure, but the real way forwards is just more efficiencies in the way we use energy!
Efficiency is definitely key. It looks like the next big issue will be improvements to the grid as we have all this wind energy in places with less people and need to pipe it around the country. Renewables are great, but they also have some impact.
150% profit in 5 years means 30% APR is really a lot of money
I agree with you here, I don't believe nuclear is the way, especially when we look at which countries hold the most uranium... Us and Europe will always be against it, and they rule the world.
As you said friend, many options is depreciating nuclear value. Demand and supply curve is really not favorable from what I am seeing. As we speak new invention are taking attentions. Anyway, you never can predict, curves do change direction.
I'm much more into renewables!