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How to invest in Uranium
This page explains how to invest in uranium. We explore the reasons it makes a good investment, the different ways you can invest in it, and offer a step-by-step guide on how to add it to your portfolio. Read on to learn more.
Where can I invest in Uranium online?
If you’re ready to invest now you’ll first need to register with an online broker. Our commodity experts have selected three of the top platforms around that let you invest in uranium which you can find below. Click any of the links to register in just a few minutes.
Why invest in Uranium?
There are lots of reasons why you may want to consider investing in uranium. Although portfolio diversification and betting on global energy consumption rising are two of the main ones. Below we’ve explained some of the other reasons why you may want to put your money in the uranium market.
- Bet on global energy consumption. Nuclear power is used to generate electricity and for many countries around the world, as much as three quarters of their energy comes from nuclear reactors. As electricity consumption grows globally, the price of uranium will rise with it, as nuclear power plants use more of the metal.
- Portfolio diversification. Many investors generally split their investments between stocks and bonds. However commodities like uranium give an easy way to diversify and spread money across a range of assets. When the stock or bond market is down, commodities tend to perform better.
- Rising Chinese demand. The majority of electricity produced in China comes from fossil fuels like coal which has led to environmental and pollution problems.As the population grows and the country looks to lower its carbon emissions, the demand for power generated through nuclear plans will increase, as will the price of uranium.
How to invest in Uranium
Investing in uranium is an easy process and if you want to get started you can follow our handy step-by-step guide below.
- Decide on an investment strategy. Before you start you will need to decide if you’re going to be passive or active with your strategy. This will help you choose the method you use to invest. For example, if you are going to be actively investing, you may want to consider futures contracts, while a passive investor may prefer stocks.
- Do your research. Next you’ll need to conduct well balanced research into the uranium market. There are a lot of things to consider before making your investment and lower down on this page we’ve covered a few of the most important factors that impact the price of uranium.
- Set a budget. Setting a budget is key before making any investment decisions. Knowing how much money you are willing to risk will help you choose the right method of investing. It goes without saying that you should never invest more than you can comfortably afford to lose.
- Choose between the long term and short term. The price of uranium is fairly steady, especially when compared to other commodities. However, it still provides opportunities for both long and short term investing. Deciding how long you plan to invest for can help you decide how to invest.
- Find an investment platform. While uranium is an actively traded commodity, not all brokers offer it so finding a platform that does is key. You can check out our broker comparison table above for our expertly selected platforms offering. Click the blue button below to get started.
Ways to invest in Uranium
You don’t have to directly buy uranium to invest in it and there are a wide range of other investment methods available. Below we’ve explained the different options you can use while investing in uranium with a brief explanation of each one.
Invest in Uranium stocks
There are lots of publicly traded companies that are involved in the uranium market. Miners, processors, and sellers, are just three types of companies available. Investing in businesses exposed to uranium is an easy way to invest in the commodity as their share price will usually rise and fall with the value of uranium.
Invest in Uranium ETFs
Exchange traded funds are often the easiest way to invest in uranium. You can buy shares in ETFs that are focused directly in uranium, companies involved in the uranium industry, or nuclear energy companies. ETFs are a cost effective way to access the industry without having to select individual stocks or track the price of uranium.
Invest in Uranium mutual funds
Funds are similar to ETFs, although they are managed by a professional fund manager who buys and sells assets according to their own expertise. Mutual funds can cover a wider market and it is possible to invest in energy focused funds. You could also invest in funds that target specific geographic regions where uranium is growing in demand, such as China.
Invest in Uranium futures
Futures contracts are the most common way to speculate on short term uranium price movements. They are an agreement to make a trade at a pre-agreed price in the future. While futures contracts can produce quick gains, they are highly complex and best suited to an investor with extensive experience in trading them.
How does the Uranium market work?
It works like most other markets where supply and demand are driving forces behind its price movements. Although there are a lot of factors that impact its supply and demand and below we’ve explained the main ones.
- Supply sources. The largest uranium miners are located in just a few countries around the world. Kazakhstan provides almost 40% of the world’s uranium output and any decisions made by its state owned miner can impact prices. Like the oil market, where a few people control prices, the same can be said for uranium.
- Stockpiling. Like most commodities, governments who require uranium often keep large stores of it to combat supply issues. When global production slows, countries begin to use their stored uranium. This in turn lowers supply and pushes the price of the commodity higher.
- Speculation. While uranium isn’t as actively speculated on compared to other commodities like oil or natural gas, many traders do bet on its short term price movements. Since the turn of the decade, its futures price has experienced volatility and risen over 120%.
- Electricity usage. As previously mentioned, uranium is widely used by nuclear power plants who produce electricity. When global electricity usage is generally high, nuclear plants require more uranium, which pushes up its price.
When should you invest in Uranium?
One of the best times to invest in uranium is when the price of fossil fuels such as oil and gas are rising. Oil and gas are used in the production of energy around the world, however when their prices rise, nuclear power becomes a more favourable option. This is turn leads to higher demand and ultimately higher prices.
Is Uranium a good investment in 2022?
Yes it could be, but a lot depends on the wider commodity market which has surged in price following the Russian invasion of Ukraine. As mentioned above, when the price of oil and gas rises, uranium often follows. This year has seen multi year highs for many commodities and the price of uranium has started to follow. Although the outcome of the war is still unknown and until a resolution is found, prices could experience wild volatility.
What should I do now?
If you’re ready to make your first investment into uranium, then registering with a broker that offers the market is a good idea. You can also check out our learn hub, where you can find courses on the stock market, currencies, and crypto. Alternatively, if you want to learn how to trade corn, you can check out our page here and read our expert analysis below.
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Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >