Uranium prices are exploding – and could see higher highs.
That could happen with Congress considering legislation that could ban Russian imports, which currently accounts for about 17% of the uranium used by U.S. power plants, says Real Clear Energy.
In addition, as noted by Business Insider, “Bank of America noted a Reuters report that said Russia had been considering banning US uranium exports,” adding, “”With minimal direct impacts, we see upward price pressure to date as driven by risk mitigation. We expect this to continue and then accelerate should direct impacts emerge.”
Plus, according to Kitco.com, “A global energy crisis that threatens to get worse and ongoing climate change issues mean there is plenty of upside potential for nuclear energy, according to the world’s biggest uranium investment firm.” The article adds that John Ciampaglia, CEO of Sprott Asset Management believes uranium could double to $100 a pound, and is only in the early stages of a bull market.
We also have to remember the U.S. just pledged to reduce emissions by up to 52% over the next several years. Europe wants to cut CO2 emissions by up to 55% by 2030. China says it’ll stop releasing CO2 in the next 40 years, for example. It’s why many are turning to nuclear energy. Plus, not only is nuclear energy the second largest source of low carbon electricity in the world behind hydropower, according to Energy.gov, it’s a zero-emission clean energy source.
And, according to the United Nations, “Twenty countries currently operate nuclear power plants, and fifteen countries have new reactors under construction or under development. Seven UNECE member States are in the process of developing nuclear power programs for the first time. A number of countries – such as Canada, Czech Republic, Finland, France, Hungary, Poland, Romania, Slovakia, Slovenia, Russia, Ukraine, the United Kingdom and the United States – have explicitly stated that nuclear power will play an important role in reducing their national emissions in the future.”
That being said, investors may want to keep an eye on stocks and ETFs, such as the Global X Uranium ETF (URA), Cameco Corp. (CCJ), Nexgen Energy (NXE), Uranium Energy Corp. (UEC), Denison Mines (DNN), and Paladin Energy (PALAF).