Uranium stocks have gone nuclear.
There’s a few reasons for that.
One, investors are betting that nuclear power could be a part of the move away from fossil fuels. Two, according to the Financial Times, “The Sprott Physical Uranium Trust has snapped up about 6m pounds of physical uranium, worth about $240m, since launching on July 19, helping to push uranium prices to more than $40 per pound, up from $30 at the start of the year. Global mine supply is expected to be about 125m pounds in 2021.”
Three, China has plans to increase its nuclear power capacity over the next few years.
However, there’s just one problem.
This year, demand for uranium. Is expected to climb to 162 million pounds this year to 206 million pounds by 2030. From there, it could increase to 292 million by 2040, as countries like China increase power generation, and look to cut emissions.
At the same time, thanks to a lack of new uranium mines, supply could fall 15% by 2025, and by as much as 50% by 2030.
With the supply-demand struggle, some of the top stocks and ETF to consider include Denison Mines (DNN), Energy Fuels (UUUU), Uranium Energy Corp. (UEC), Cameco Corp. (CCJ), and ETFs such as the Global X Uranium ETF (URA), which holds positions in Cameco Corp., Paladin Energy, Rio Tinto, Uranium Energy Corp., and BHP Group to name a few.