On the other hand, nuclear energy can provide baseload power without the emissions of coal or natural gas and without being susceptible to the on-and-off nature of solar and wind energy.
Can investing in uranium through uranium stocks, funds and futures offer a chance to take advantage of this dynamic and valuable metal?
Even as some countries are winding down their nuclear programs, the United States has set aside billions in the recently passed infrastructure bill to support the next generation of nuclear reactors. The European Commission is working on a draft text that would include nuclear power “as a means to facilitate the transition towards a predominantly renewable-based future.” On the supply side, recent turmoil in Kazakhstan, the world’s largest producer of the radioactive metal, has also contributed to rising prices.
“The fundamentals of uranium continue to improve, with demand for uranium now exceeding pre-Fukushima levels and global mine production expected to lag global consumption,” says Global X analyst Rohan Reddy. “A deficit is expected to persist for the next couple years as utilities begin re-contracting, but mining supply remains tapered.”