Hi everyone,
Uranium, a less known, but extremely critical commodity.
The uranium sector is in an inevitable growing global supply deficit due to:
– a lack of investments in the uranium sector for more than 10 years, while existing uranium mines are more and more nearing depletion.
– a growing global demand for uranium (China alone aims to build an additional 150 reactors between 2021 and 2035 –> causing an increase of global uranium demand by ~30% on their own by 2035. And China builds on time and on budget, not like in the West!)
– uranium prices being to low to incentives the construction of enough new uranium mines in the coming years
This primary supply deficit is filled by consuming above ground uranium stockpiles of the past, until they aren’t there anymore 😉 Tik tok tik tok…
A month ago the IAEA told utilities and uranium companies that the operational uranium reserves reached a critical low level in the USA and EU now!! –> Uranium restocking is inevitable.
There are different way to get exposure to the uranium sector:
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an investment in a Physical Uranium funds, like Sprott Physical Uranium Trust (https://sprott.com/investment-strategies/physical-commodity-funds/uranium/) and Yellow Cake: Here you aren’t exposed to the mining related risks.
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an investment in well diversified uranium sector etf: Sprott Uranium sector (URNM), Global X Uranium (URA etf), HURA etf, …
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individual uranium companies
Cheers
