The ETF portfolios belonging to the Uranium industry have been outperforming and producing phenomenal gains since the end of 2013. The sector seems very potential in the present year, as many ETF consultants are looking at the sector as potentially bright with the bullish turnover in the uranium price to add a cherry to the cake!
China has started to push its focus towards combating greenhouses gas emissions and pollution and in this regard the demand for nuclear energy and renewable energy has risen.
Long lasting effects will be seen in various sectors such as the Uranium industry and the mining sector. After the catastrophe in Japan lots of critics had anticipated a downward trend in the sector as a reaction to the shock and result of the hazards involved. The entire world was in a state of shock as Japan was trying to courageously pull its people out of the big mess and loss. There was a slight drop in the investments in renewable energy sector especially in the nuclear field but the momentum has picked up again. The increase in the demand for energy by the ever growing population and the hungry manufacturing sectors of the world economy has led to constant and persistent increase in the demand for the energy. The leading economies are still focusing on the new source of renewable energy that helps to control the green house effect, overlooking the arguments against it.
The geopolitical crisis between Russia and Ukraine is another factor that has led to an increase in the demand for Uranium. The nuclear power seems to be the best option than relying on imported Russian Gas or cheap recycled uranium. The present political crisis could last long enough to be able to put the European, US and the Japanese economies on a threshold.
Though the world economies have learnt their lessons ever since the Fukushima Disaster, strangely these past three years have seen an increase in the number of Nuclear Reactors built or added in the pipeline. The western countries had put an end to some of their plants as they felt that safety was a major factor of concern. But this was largely compensated with an increase of Nuclear Reactors in the rest of the globe! Looking at the figures we can see that the EU has been the largest per capita user of nuclear power in the world. It has over 160 nuclear reactors to its credit, making it the largest consumer for the raw product. Despite taking a step back they still stand out in the consumption of the mineral. This economy can in no way dependent on Putin.
The U.S has 104 plants and is also in deep trouble as they are dependent on the cheap raw uranium from Russia. This political situation in the east is going to affect the major consumers of the white metal and this may also lead to a new search for the power metal. There are chances that the production of Uranium may increase in the U.S itself to help them combat with their present demand for the mineral. This simply implies a boon in the uranium mining sector in North America. So the uranium sector ETFs are going to see a new horizon.
Toroso Investment is SEC accredited firm based out of New York, USA. The firm boasts of the AG & G created proprietary investment solutions and its biggest assets in the form of Co-founders- Larry Medin, Dan Carlson and Michael Venuto who have put in their best efforts to help the investors find portfolios that are made as per the objectives of the clients economic point of view and provide portfolio optimization services to institutional clients.