Uranium Investing Offers Explosive Potential

Uranium investing is an often overlooked method of investing in the precious metals market. While most people are focused on gold, the "other yellow metal" has something to offer investors as well. Here are a few things to consider about the potential of investing in uranium and how to go about doing so. 

Uranium Potential

With the majority of the world looking for alternative sources of energy, uranium makes a lot of sense for investors. The oil industry has been the provider of the bulk of the energy that is created in the world today. With oil and natural gas being used for power creation, countries are starting to look for other methods of creating power. Even though nuclear power has been around for a long time, it is starting to make a comeback.

There are more than 30 new nuclear power plants that are scheduled to be constructed within the next few years. The demand for uranium far exceeds the current amount of supply. There are only a few uranium mines in the world today. They are located in Australia and Canada for the most part. A new mine is being developed in Namibia. In some cases, they also come up with uranium when mining for gold or other precious metals. With such a small supply and a large demand, you know that the value of uranium is only going to continue to go up dramatically in the next several years.

Investing in Uranium

Even though the thought of investing in uranium might be attractive, many people are confused as to how to go about doing so. This is not as easy to invest in as gold or silver. When it comes to investing in uranium, you cannot purchase uranium directly like you can with gold or silver. Instead, you have to invest in stocks that are affected by uranium prices. For example, you can invest in the stocks of mining companies that specialize in uranium. For example, Cameco Corporation is one of the most popular uranium stocks on the market today. When you invest in this company, you are essentially banking on uranium prices increasing.

You could also invest in a company called the Uranium Participation Corporation. This is a company that has reserves of uranium oxide on hand. 

Another way to indirectly invest in uranium is to put money into nuclear power plants. Nuclear power plants generate electricity based on using uranium and they will do well if uranium does well. They will have to raise prices and the value of the companies will continue to grow.

Green Controversy

Investing in uranium is not without some controversy. There are many environmental groups that are against nuclear power and are actively trying to prevent it from growing. With all of the attention in the past over nuclear power plant disasters, it is easy to see why they might be concerned. With new regulations and improved technology, nuclear power plants are hoping that they never have to deal with another meltdown again.

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