Top 10 Reasons Why Investing in Uranium Stocks Makes Sense.

Uranium is the most energy potent raw material we have at our disposal. I believe a new dawn for uranium stocks is upon us.
investing in uranium stocks

Contents

Nuclear Energy Is Safer Than Other Forms Of Energy.

 

In this blog post, I share my thesis on why I believe investing in Uranium stocks is a good idea for the patient resource investor.

For example, compared to nuclear energy, the burning of fossil fuels such as coal and oil was responsible for 8.7m deaths globally in 2018, (Source: The Guardian), and many millions more serious and minor illnesses. In China, more than 650,000 people die prematurely p.a. as a result of coal-related air pollution.

 

The facts are simply mind-blowing statistics:

 

Deaths By Form Of Energy Per TWh (Terra Watt Hours)

Coal…161
Oil…36
Nat gas…4.0
Hydro…1.4
Wind…0.15
Solar..0.44
Nuclear..0.0013

 

On the one hand, people idly live next to coal plants for decades (even the dirtiest brown coal plants!), and believe this is okay. On the other hand, they object to nuclear energy that has killed less than 5,000 people in its entire history! The transition to de-carbonizing the world will, so I believe, usher in a new era. An era in which the reputation of nuclear energy, and with it, the concept of investing in Uranium stocks, is perceived.

 

I am by no means an expert in this space, just a DIY investor trying to understand how things work. And I believe we are witnessing an amazing opportunity. An amazing wealth-generation opportunity as we are still extremely early, and the wide public does not even look at the space.

 

 

Top 10 Reasons Why Investing In Uranium Stocks Makes Sense

 

  1. The world still depends on coal, killing millions a year (!), and harming our children – this needs to change.

  2. At current price levels, basically, 90% of all Uranium mining companies can not make a profit – either the price goes up, or the lights go out.

  3. Renewable energy is weather-dependant, AND, renewables like hydro, wind, and solar, require insane amounts of resources such as concrete, lithium, silicone, or silver, requiring environmentally unfriendly mining operations (hence renewable energy is not as clean as people often claim it is). Therefore, nuclear energy is essentially the cleanest form of energy there is.  Impressive fact: One single coal plant generates as much waste by volume in one hour as a nuclear power plant in its entire history

  4. We are facing a crazy geopolitical situation: The U.S. only produces 1% of its annual Uranium need; we can already see it now, but I believe there will be a stampede and total scramble for natural resources, in particular Uranium, as it represents the most effective form of baseload power

  5. I have the ‘romantic’ or philosophical point of view that any ‘advanced civilization’ should master its most energy-potent raw material

  6. While being on the topic of ‘romantic’ – if we ever want to become a multi-planetary civilization, we absolutely need Uranium to power the spaceship and rockets to get us there. Just this point alone is important enough to keep on using and mastering this so-potent raw material!

  7. Bill Gates invested 750 Mio USD in a micro-reactor startup, creating ultra-safe, geographically independent nuclear power plants. Others like Elon Musk also started talking about investing in Uranium stocks!

  8. In the future, we will surely not have fewer energy needs (think 5G, electric cars, automized robots, cloud computing, AI, server farms, .. there will be a gigantic need for (baseload) energy.

    0
    You do also invest in Uranium stocks?x


  9. Just 450 reactors globally power 15% of the world’s energy need (in the U.S., nuclear power plants provide 20% of the baseload power, in France 70%!)

  10. The World Nuclear Supply Chain Report: Outlook 2040 projects another 300 new reactors will come online over the next 20 years, while 150 are closing, with associated CAPEX of nearly $1 Trillion – $1.7T USD.. this represents an approximate net gain of 135 reactors (!)

 

This video showing Michael Shellenberger’s viral YouTube video on TED started my journey a few years back.

 

 

 

 

How To Go About Investing In Uranium Stocks?

 

After watching the video back in 2018, I didn’t make any investment right away but started to pay more attention to it. Since then, I spent a lot of time researching space. You can check out my entire Uranium portfolio on my Thematic Portfolio page.

 

Uranium to SPY 500 Ratio

 

Currently, the prices of the Global X Uranium ETF (URA), one of the leading Uranium miner ETFs compared to the S&P 500 are still incredibly depressed (compare it to 2011!). The thesis here is it shall return to the norm.

Once it breaks above the thin orange line, things might turn very quickly. 

 

Uranium Stocks Vs SP500 URA-SPX

updated 2023/09/19, search for “AMEX:URA/SP:SPX” to re-create this chart on Tradingview.com

 

 

 

Conclusion

 

Now, you can either build up your portfolio of good Uranium stocks or keep things simple and buy my recommended Uranium ETF, called Sprott Uranium Miners Fund (URNM), making investing in Uranium stocks simple!

As for my favorite single Uranium stocks, I surely would go with the 800-pound gorilla, Cameco (CCJ). Check out my full Uranium portfolio on my thematic portfolio page.

As mentioned before, bring a minimum of 3 to 5 years for this investment thesis to play out!

 

 

 

📘 Read Also

 

 

 

 

 

FAQ

 

How to invest in Uranium stocks?

You can either buy one of the leading Uranium ETFs, such as $URA or $URNM. Alternatively, you can buy the leading Uranium miners such as Cameco (CCJ), Energy Fuels (UUUU), or Uranium Developers like Nexgen Energy (NXE) or Denison Mines (DNN).


How to invest in Uranium stocks?

You can either buy one of the leading Uranium ETFs, such as $URA or $URNM. Alternatively, you can buy the leading Uranium miners such as Cameco (CCJ), Energy Fuels (UUUU), or Uranium Developers like Nexgen Energy (NXE) or Denison Mines (DNN).


How to value Uranium stocks?

You value Uranium stocks in a similar way to assessing the value of precious metals stocks. You can start by looking at the Uranium company’s asset base (ie. how many pounds of Uranium the mines they own have underground), the management’s track record, how much the management pays themselves, their sales and profit, etc.).

One big aspect is the price of Uranium. With increasing Uranium prices, the miners subsequently can sell the Uranium they mine for a higher price. The long-term outlook for Uranium is very positive, as the trend towards electrification is strong, requiring the world to produce more and more clean energy.


What are the best NYSE or ARCA Uranium stocks?

The following Uranium stocks or ETFs are listed on the NYSE or ARCA:
URANIUM ENERGY CORP (UEC)
URANIUM ROYALTY CORP (UROY)
SPROTT URANIUM MINERS ETF (URNM)
VANECK URANIUM + NUCLEAR ENERGY ETF (NLR)


What are the best Uranium ETFs?

The leading ETFs investing in Uranium and Uranium producers:

$URA – Global X Uranium ETF – Total Assets $1,63 Bio USD
$URNM – Sprott Uranium Miners – Total Assets $0.88 Bio USD
$HURA – Horizons Global Uranium – Total Assets $0.05 Bio USD


Should I invest in Uranium stocks?

Many people believe there is a Uranium bull market about to commence, with the general perception of Uranium improving. With nuclear power plants becoming safer and more efficient, the security culture more mature (in particular in Japan after Fukushima), and the need for massive amounts of clean base-load power from nuclear, this might indeed be the case.

Uranium stocks can be extremely volatile, hence the right portfolio construction and right allocation to this asset are of great importance. Some advisors recommend putting no more than 1%, or maybe 5% of your liquid net worth in the Uranium sector.


What are the best Uranium stocks to buy?

1 – Cameco (CCJ) – pays a dividend and is already a producer
2 – Energy Fuels (UUUU)
3 – Denison Mines (DNN)
4 – Nexgen Energy (NXE)
5 – Encore Energy (ENCUF)
6 – UEC (UEC)
7 – Global Atomic (GLATF)
8 – Uranium Royalty Corp. (UROY)
9 – Ur-Energy (URG)
10 – Labrador Uranium (LURAF)


Recent Posts

Subscribe
Notify of
guest
Please agree to the privacy terms
0 Comments
Inline Feedbacks
View all comments

About Me

Hi there, I’m Noah, an avid DIY investor on a quest for wealth & wisdom. I’m sharing my portfolio, trades & dividend income so you can learn from my missteps! Sign up for my 100% free newsletter to get updates.

Freedom Stats

🧑🏻‍🌾 Age when reaching FI: 40 in 2018
😰 Left the rat race: May 2017
🏠 Living in: Singapore
👨‍👨‍👧‍👦 Number of kids: 2
💵 Net Worth: $6.5 Mio US
☂️ All-Weather Portfolio: $1.02 Mio
🍭
Dividend Income (2023): $25k
🌳
Passive Income (2023):
$157k
💵
Crypto Portfolio: $2.0 Mio
♥️
My 10 Favorite Dividend Stocks

Disclaimer

I’m not a financial advisor. Please do your own research & read the disclaimer. No content is meant to be a recommendation. Some pages might contain affiliate links that won’t cost you anything.

My Top Content

🤟Services I Love

For stock research: SeekingAlpha
For in-depth research: Gurufocus
For buying Bitcoin & crypto: Nexo
For
buying gold: Goldbroker
For pension saving: Getpenfold
For storing crypto: Ledger Wallet

Recent Posts​

Search

Join My Email List

Check out my passive income.
100% free. No spam. 
Unsub anytime.

financial newsletter for dividend stocks

Join My Free Email List

Ahoy, captain of your own financial destiny! Ready to hoist the sails towards serene financial freedom?

My spam-free, no-cost emails will map the market seas, and steer you towards independence. Unsub anytime! Bonus – Instantly unlock my passive income!