Asset Classes

Metal

Radioactive chemical element that is primarily used in nuclear power generation and military weapons.

More About Uranium


Uranium is a Politicized Metal

Nuclear Scares & Disaster Can Negatively Impact Uranium Prices
  • These events cause publish disfavor and protests
  • Can even cause closure of nuclear plants and/or cancellation of new nuclear project
  • Examples include:
    • Three Mile Island
    • Chernobyl
  • This results in reduced demand and a fall in prices

  • Uranium prices tend to follow cyclical patterns
    • Rise very high when nuclear power is in favor
    • Fall below production costs when nuclear power is out of favor
  • 20 year bear market from early 1980s to early 2000s
  • Bull market till mid 2000s
  • Bear market from mid 2000s to current (2018)
  • Setup for a potential price increase in 2018 & beyond

    • The number of uranium miners is shrinking
    • Globally the number of nuclear power plants is increaseing