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  • Uranium Mining Funds Prone To Bubbles In The Price Market 0 comments
    Oct 17, 2013 5:09 AM

    It is the living standards of the economies and increasing energy demand of the ever increasing massive populations that brings the need for energy fuels other than the conventional ones to cater to the requirements of the global industries power requirement.

    Though the Fukushima nuclear disaster played a very significant role in the demand and prices of the Uranium, it also brought along with it the scary reassessments of the risks involved in the Nuclear Industry. One such country to have withdrawn itself from this particular industry is Germany. This country is said to have initiated to close their 17 nuclear reactors by the year 2022.

    The BRIC Economies are drawing near to the United States in terms of per capita energy owing this transformation phase to their growing standard of living. As per the World Nuclear Association Russia has 30 proposed nuclear reactors in the pipeline in addition to it's already 14 planned and 10 under construction. India is also close behind with 40 projects in the pipeline. Among the other countries that still continue to focus on the nuclear projects to fill the gap of the demand and supply of energy are Brazil, Canada, France and China. With the largest number of proposed reactors in pipeline, the Chinese government is very determined to procure the uranium mines and the product to place itself on the safer side of its supply of the energy source. The Nuclear propaganda of this economy is very dynamic. The trade barriers of this economy place the need for stockpiling.

    The disaster that happened in Fukushima brought down the price of uranium to $50. But the investors still see a great potential in the uranium industry, the reason being that the demand for uranium is slightly higher than the supply of the product. Emerging markets are initiating further demand of the product and this in turn leads to a heavy inflow of funds towards the uranium miners ETF.

    The supply demand imbalance of uranium in the global market is expected to bring a hike in the prices for this commodity. The latest breeds of Nuclear Reactors are the Breeder Reactors and the Seaweed Extraction reactors.

    The Breeder reactors are economically feasible and viable as they have the ability to recycle uranium. This technology is still under the process of better research and development, but the uranium industry is waiting eagerly for the better results as the prices of the mineral are anticipated to increase in the near future. Another latest technological invention is the development of Seaweed Extraction reactors which feed on the infinite supply of uranium in the ocean. But this method would require the prices of the metal to increase to a state where the extraction of the metal is found feasible. The saddest part of these developments is that though researches are in process, the results are not expected to happen in the near future. The process is time consuming and since it is related to the nuclear industry it is a matter of double thoughts and cautiousness.

    The highlight of the story is that despite all odds the demand for uranium is bound to increase and this only suggests that the investments in the uranium mining fund are expected to increase in the near future because of the potential in the industry and need to tap the untouched reserves of uranium.

    Global X Uranium ETF [URA] offers exposure to the best uranium mining companies worldwide in the uranium Industry sector corresponding to the price and yields of the Solactive Global Uranium Index and charging an annual fee of 0.69%. Uranium ETF comprises of selected companies that are globally engaged in the uranium mining industry in areas such as mining, refining, exploration, and the manufacturing of equipment for the uranium industry.

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