Trading uranium shares
Even though nuclear power is controversial, nuclear energy is still an important element in energy production. Especially in Asia, but also in Europe, there are extensive plans to build new nuclear power plants. Against this background, uranium stocks have a bright future ahead of them, especially because the raw material is limited.
- Nuclear energy can play a major role in achieving climate targets (reduction of CO2 emissions)
- According to IAEA estimates, consumption of uranium is expected to rise to 108,000 tonnes in 2030 (around 54,000 tonnes were mined in 2019)
- Increasing electromobility increases demand for electricity
- There are only a few big players that can be described as pure uranium stocks
- However, buying uranium shares can be problematic from an ethical point of view
Uranium: a raw material of the future?
Forecasts are difficult, especially when they concern the future. This saying by Mark Twain makes it clear that investors should approach forecasts with a certain scepticism. We do not want to completely ignore this thought when it comes to the topic of uranium and nuclear energy either. Although there are many experts who agree that uranium will play a much bigger role in energy production in the future than it does today, this does not automatically mean that uranium shares will be the big winners of the future.
Years ago, some experts warned that uranium could become scarce in 2019. In an article in Science of the Total Environment (2014), physicist Michael Dittmar of ETH Zurich wrote that there could be a uranium shortage and massive price increases in 2019. However, neither a uranium shortage nor a massive price increase has occurred, although the term "massive" is certainly stretchable. Nevertheless, Dittmar could be right in the longer term, so that only the timing of his forecast was not quite right. the following are some reasons why.
Besides Asia, Europe is also relying on nuclear power. In Europe, 13 nuclear reactors are currently under construction, 32 are in the planning stage and over 50 more nuclear reactors have been proposed for the future. The future of nuclear power in Europe is difficult to predict because the individual countries are pursuing very different strategies. In Asia, however, nuclear power will play a much bigger role in the coming years and decades than it does today.
- Number of nuclear reactors worldwide at a peak, demand rising
- Nuclear energy is low in emissions and at the same time capable of providing base load, which wind and solar energy cannot do.
- Electromobility needs electricity; the supply from renewable energies is by far not sufficient for it
- Massive mine closures lead to a reduction in uranium mining
- Demand for uranium already exceeds supply
- Nuclear energy is used as a bridging technology on the way to renewable energy generation
What is uranium needed for?
Uranium is needed for these things, among others:
- Nuclear energy
- Nuclear weapons
- Depleted uranium is used as shielding material in radiation protection; it is also used as keel weights in high-performance sailboats.
- Plutonium as transmutation of uranium is used in space travel
Although uranium is mainly used in the production of nuclear energy, it also plays a role in the military, which investors should bear in mind after https://exness-vietnam.asia/.