Any investments in the chemical element of uranium itself are considered uranium investing. Uranium is mostly used for nuclear energy, which is an efficient, environmentally friendly source of energy utilized by countries around the world. Any investments in uranium miners would also be considered uranium investing. From governments to mutual funds to individual investors, uranium investing continues to grow, especially in emerging markets.
The growth of the world’s population will have an impact in several areas, including great energy demands. As more goods are being made, this in turn means more energy use. There are only so many ways to generate energy. Over the next several decades, the most effective method still remains nuclear power and through this uranium investing will still be relevant. The best way for the retail investor to profit from uranium investing is through mining stocks.
Energy demand continues to grow for emerging nations like China and India. This is where uranium investing comes into play. These nations need the energy and only through uranium investing can they keep up with their growing needs. Emerging markets are planning a very large build-out of nuclear plants over the next decade, from which uranium investing and mining stocks should benefit.
The Fukushima Daiichi nuclear disaster in Japan did temporarily hurt mining stocks for investors interested in uranium investing. Some short-term moves can hurt total portfolio returns if they are only temporary. For those with a bullish view on uranium investing, starting to research and having a watch list of mining stocks for future accumulation might be a good idea in this environment. One positive is that, over the past year, uranium prices have remained stable. This is quite bullish for those interested in uranium investing and mining stocks. If mining stocks can estimate a stable price for the commodity, they can better plan and allocate their capital.
Chart courtesy of www.StockCharts.com
Cameco Corporation (NYSE/CCJ) is a huge company involved in uranium investing. This chart is a one-year view of the stock. … Read More