How to invest in nuclear energy through uranium stocks.
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To combat climate change, we need to stop relying on fossil fuels. Renewable energy sources are great but they suffer from intermittency issues.
Solar power needs the sun to shine and wind turbines need the wind to blow. Batteries aren’t yet good enough to store all the energy they create.
A clear solution to this is nuclear power. Nuclear has low operating costs and its 8,000 times more efficient than fossil fuels. It’s also clean. According to the World Nuclear Association, during its life cycle, nuclear energy produces about the same amount of CO2 per unit of electricity as wind, and even less than solar.
Of course, nuclear power has problems too. Reactors cost a lot to build, nuclear waste is radioactive and accidents happen. The progress of nuclear power hit a major setback after the 2011 disaster at Fukushima.
That said, the scale of the challenge facing humanity is so great that we’re going to need some help from nuclear power in order to meet carbon targets.
And this progress is starting to happen. Right now there are at least 57 nuclear reactors being built worldwide. And according to the International Energy Association, 8GW of new nuclear capacity came online last year.
#uraniumstocks #investing #stockmarket #stockstobuy
Join 9,000+ investors: https://www.overlookedalpha.com
To combat climate change, we need to stop relying on fossil fuels. Renewable energy sources are great but they suffer from intermittency issues.
Solar power needs the sun to shine and wind turbines need the wind to blow. Batteries aren’t yet good enough to store all the energy they create.
A clear solution to this is nuclear power. Nuclear has low operating costs and its 8,000 times more efficient than fossil fuels. It’s also clean. According to the World Nuclear Association, during its life cycle, nuclear energy produces about the same amount of CO2 per unit of electricity as wind, and even less than solar.
Of course, nuclear power has problems too. Reactors cost a lot to build, nuclear waste is radioactive and accidents happen. The progress of nuclear power hit a major setback after the 2011 disaster at Fukushima.
That said, the scale of the challenge facing humanity is so great that we’re going to need some help from nuclear power in order to meet carbon targets.
And this progress is starting to happen. Right now there are at least 57 nuclear reactors being built worldwide. And according to the International Energy Association, 8GW of new nuclear capacity came online last year.
#uraniumstocks #investing #stockmarket #stockstobuy
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NewsTranscript
00:00 To combat climate change we need to stop relying on fossil fuels.
00:03 Renewable energy sources are great but they suffer from intermittency issues.
00:07 Solar power needs the sun to shine and wind turbines need the wind to blow.
00:11 Batteries aren't yet good enough to store all the energy they create.
00:14 A clear solution to this is nuclear power. Nuclear has low operating costs and it's 8,000
00:19 times more efficient than fossil fuels. It's also clean. According to the World
00:24 Nuclear Association, during its life cycle nuclear energy produces about the same amount
00:28 of CO2 per unit of electricity as wind and even less than solar. Of course nuclear power has
00:34 problems too. Reactors cost a lot to build, nuclear waste is radioactive and accidents happen.
00:39 The progress of nuclear power hit a major setback after the 2011 disaster at Fukushima.
00:45 That said, the scale of the challenge facing humanity is so great that we're going to need
00:49 some help from nuclear power in order to meet carbon targets. And this progress is starting
00:54 to happen. Right now there are at least 57 nuclear reactors being built around the world.
00:59 According to the International Energy Association, 8 gigawatts of new nuclear
01:03 capacity came online last year. The thing is, to reach net zero we're going to need
01:08 four times more than that every single year until 2030 according to the Financial Times.
01:14 And the best way to invest in the future of this nuclear power is through the fuel uranium.
01:19 Uranium itself is an abundant metal. According to BMO, global stockpiles are 3.8 times higher
01:25 than annual demand. But not many people are mining uranium right now. Demand is outstripping
01:30 supply by 50 million pounds per year according to the Financial Times and this is quickly
01:35 depleting stockpiles. As a result, the price of uranium is starting to rise, hitting $56 a pound.
01:42 Today there's plenty of ways to invest in this trend. Uranium mining stocks like Camco, Energy
01:47 Fuels, Denison Mines and Uranium Energy Corp offer investors direct and mostly unhedged exposure
01:53 to the price of uranium. Meanwhile, larger cap mining companies like BHP Billiton and Rio Tinto
01:59 also have uranium mines as well as exposure to other commodities like copper which is used a
02:04 lot in electric vehicles. Buying small individual miners is highly risky since they often go
02:09 bankrupt. They usually operate in high risk countries and the process of mining is difficult
02:14 and expensive. But when they do succeed, they can produce big returns. A less risky way to invest
02:19 in uranium is through ETFs. The Global Uranium ETF URA provides exposure to a range of companies
02:25 involved in uranium mining and the production of nuclear components and it's got an expense ratio
02:31 of 0.68%. There's also the Sprott Uranium Miners ETF and the Sprott Physical Uranium Trust which
02:37 invests in physical uranium and currently holds over 61 million pounds of the metal. This one has
02:43 an expense ratio of 0.7%. If the price of uranium continues to increase, these stocks and ETFs should
02:50 all rise in value. But this is my personal opinion, not financial advice and I do hold shares in UEC,
02:55 URA and Energy Fuels. If you're interested in more detailed investing ideas, make sure to visit
03:01 our website overlookedalpha.com