Why This Dismissed Investment Can Provide Us With High Returns?

Summary

  • Climate change seems to be a very serious problem, millions realize it.
  • Electors in Europe are voting for green parties, politicians struggling with climate change.
  • Nuclear energy can be part of the solution.
  • The demand for uranium (shares) can skyrocket in long term.

The day millions marched

Ten days ago, the 20th of September large global protests were organized demanding the protection of our Earth. As Britain’s state’s media wrote:

Climate protests sweep the world (…) Millions of people joined a global climate strike led by schoolchildren. “We are skipping our lessons to teach you one,” one sign read (…) Our live coverage marked the protests from Pacific islands to LA (…) The day millions marched (BBC)

Hopefully not too late. But the world seems to be awakening. Some months before, on the elections of the European Parliament, green parties gained a lot of popularity. Especially in Germany. German politicians are taking much more seriously the climate goals since then, they are making new plans.

We need less CO2 production

Future budget packages of the EU can be re-written, subsidies re-thought taking into account the climate issues. Just yesterday, 29th of September 2019, in elections of Austria “The Greens – The Green Alternative” got 12.35 percent – far more than in 2017 (only 3.8 percent).

The far biggest problem in the climate change crisis seems to be the high CO2-emission. One of the important solutions could be the “clean”, cheap – but very dangerous – nuclear power. Possibly it couldn’t resolve all problems, but can be an important part of the solution.

Still, new plants in construction

Germany and Japan decided to stop all atomic plants after the Fukushima disaster in March 2011. Germans are already talking about re-thinking it. But other countries are still constructing plants. In 2018, 55 atomic plants were under construction and 450 in operation globally. The projected growth by the organization IAEA is very interesting also if we discount it with some “home bias” phenomenon:

The need to substantially expand the contribution of nuclear power climate change mitigation is reflected in the emissions pathways presented in the recent Intergovernmental Panel on Climate Change special report entitled Global Warming of 1.5° C2. In most pathways that are consistent with limiting global warming to 1.5°C, nuclear power increases its share by 2050; for example, the four model pathways highlighted in the Summary for Policymakers project an increase in nuclear power generation of at least 59% by 2030 and up to 501% by 2050, relative to 2010. (IAEA annual report)

Resuming it:

Nuclear power generation can jump by 59 to 500 percent if policymakers decide to stop Global Warming.

There are a lot of other issues and solutions, like new generation power plants with thorium fuel. Or the experiments with new types of batteries (to store solar or wind energy). Very long construction times of plants, security problems and so on. But it seems to be clear that nuclear power will gain importance. In case if nothing revolutionary happens like the discovery of basically new technology.

Uranium mines offer high return

More power plants mean more uranium demand. Uranium itself can’t be bought by everyone, but uranium miner’s shares, yes. They are represented in the older American URA ETF (Global X Uranium Exchanger Traded Fund) or the newer Canadian Horizons Global Uranium Index ETF (HURA).

URA ETF price

The Global X Uranium Exchange Traded Fund (URA) (Chart courtesy of Tradingview)

The URA ETF you can find on the list of the worst ETFs of the world. (Among others here) Its price fell 90.5 percent in less than nine years. (Not counting some dividends paid out.) It is by 10.96 USD a share, only at approximately ten percent higher than its all-time low by 9.96 USD.

Cheap, forgotten, with good chances to be discovered again. A good choice for me, the bargain hunter, on a longer-term. Can be reborn like a phoenix, maybe in 1-3 years.

How to buy uranium mines in Europe?

Europeans may have problems buying this American ETF since the Mifid 2 regulations. I have seen a certificate before in Frankfurt, but I can’t find it any longer. But you can buy at least a dozen individual uranium mines shares, also Cameco.

Often, I think it is a good sign if it is hard to find a product to speculate in some area. That means it is a seriously forgotten investment. Where liquidity is very low and it is totally outside the investor’s interest. It is unknown in the mainstream. If people discover it again the product can show a big price jump.

Some uranium miners shares in Germany, Xetra

  • Cameco Corp.
  • CanAlaska Uranium Ltd.
  • Fission Uranium Corp.
  • Blue Sky Uranium Corp.
  • NORTHERN URANIUM CORP.
  • Uranium Participation Corp.
  • YELLOW CAKE PLC.
  • Mega Uranium Ltd.
  • ALX URANIUM CORP.
  • PUREPOINT URANIUM GRP
  • Uranium Energy Corp.
  • GOVIEX URANIUM INC
  • MONSTER URANIUM
  • WESTERN URANIUM + VAN.
  • Azarga Uranium Corp. 
    (Source: Boerse Frankfurt)

Disclaimer 2

I’m long on URA ETF.

Disclaimer

This website and the information contained herein is not intended to be investment advice or credit analysis. I’m not a financial advisor and I have no business relationship with any investment or finance-related company. The posted material on this blog is my personal opinion or quoted from other sources but never advice or an offer to buy or sell any product. Make your proper research, or consult your advisors before making any investment or financial or legal decisions.

(Photos: Pixabay.com)

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