Traditional sources of oil and coal are shifting to new alternatives. The future of clean energy is invested in solar, wind and biofuels, but another industry for those in support of nuclear energy is adding this emerging market to their portfolios to include uranium stocks.
Two of the power players for investors is with exchange traded funds such as Market Vectors Nuclear Energy. It is best to track uranium miners with The Global X Uranium ETF which will show all 25 whose holdings are primarily concentrated in Canada is performing well showing a return.
Hard rock mining requires several methods of extraction known as open pit mining which is done below the surface of sedimentary rock. Another process is called heap leaching where sulfuric acid is used to retrieve deposits from ore.
In-situ leaching is a solution mining technique that allows minerals to be discovered without disturbing the ore in the ground. The other nuclear power generation of fuel recovery is from seawater which is made possible by low concentration elements or inorganic absorbents known as titanium oxide compounds.
Scientist believe that the resource is limitless, the challenge will be keeping down the high cost of the various extraction methods being used, not to mention the fact that uranium ore emits radon gas making uranium mining dangerous compared to other underground mining. Leading to a need for adequate ventilation systems to be installed.
Why uranium is a good investment?
Plenty of people are excited about this precious metal because it is unlike any other basically for the fact that it is not traded on an organized commodity exchange such as the London Metal Exchange.
Mostly this makes it something that has to be negotiated directly between a buyer and a seller. When it comes to pricing it can vary from contract to contract so the buyer and seller agree on a base price that escalates over time on the basis of an specific formula.
This is why you will see long term contracts ranging from two to 10 years. It is important to note that the uranium market commercial use for fueling nuclear reactors and generating electricity makes it a commodity market which can be volatile.
The processing can be a long one from mining it underground to fuel fabrication. Nuclear power plants will buy the uranium separately instead of from fuel bundles provided by fabricators, they do thisto get the best price and service.
Apparently sellers consist of suppliers in each of the four stages and includes brokers and traders with fewer than 100 companies to buy and sell uranium. Since the uranium markets are differentiated by geography you will see the global trading of uranium in two distinct marketplaces.
The first being in Americas, Western Europe and Australia and the second in the former Soviet Union, or the Commonwealth of Independent States (CIS), Eastern Europe and China.
Source: List of uranium mines en.wikipedia.org/wiki/List_of_uranium_mines
Disclaimer this is for informational purposes only and is not meant to give investment advice, it is recommended that you consult a investment broker before putting money into any type of stocks.