Uranium Investment Funds
Welcome to Uranium Investment! We are a new resource providing a wide range of funds, information, tips, advice, and more. Uranium and nuclear power funds are becoming a common option for high risk and aggressive investors and portfolios.
Like most commodities, the demand and supply is easy to understand - utilities need it, and burn it up in their power plants; roughly 200lbs of uranium oxide per gigawatt equivalent of electricity, but the initial load is roughly triple that.
Miners find it, processors refine it, specialist companies store it. Like oil, gaining a permit, and extracting first product can take a decade.
How Uraninum Investments are valued is differting from oil. Unlike oil, from extracting the raw material to production of a fuel rod can take 18 months. Worse, spot prices at $40/lb make marginal mines plain unfeasible; if they close, and then demand picks up, prices will spike.
Investors should also take note of the advances made in the nuclear energy sector since the Chernobyl and Three Mile Island incidents. Safety technology and standards have improved, so we are led to believe, to the extent that further dangerous incidents of this magnitude are no longer possible.
Uranium Investment Tips
A more direct way to play the nuclear story is in Uranium Participation Corp. It buys and holds uranium, its stock tracks the spot price, and the company holds just north of C$600 million worth of product; investors track the net asset value, which is reflected in the share price. If uranium prices rise, so does the share price - simple.
Pancontinental Uranium (CVE:PUC)
Crossland Uranium Mines(ASX:CUX)
Western Desert Resources Ltd (ASX:WDR)
Tournigan Energy Ltd. (CVE:TVC, FRA:TGP)
First is the iShares S&P Global, listed in New York, which has an asset value of $14 million and a TER of 0.48. Cameco is its top holding. Also there's the World Nuclear Association Global Index run by ETF Securities, which is more diversified with 65 holdings and a higher TER of 0.65%.
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