Why Investors Should Take a Second Look at Uranium Stocks
The world's demand for energy is in an upward trend. Industrialization and the rapid increasing wealth in emerging markets are important factors driving the increase in the worldwide energy demand. The energy-intensive economic growth in developing countries causes demand for energy resources to rise by more than 3% a year. When economies grow and industrialize, demand for electricity accelerates. Currently almost 90% of the global energy needs are met by crude oil, natural gas, and coal. However, nuclear power is still the cheapest, cleanest and most reliable source of electricity.
When most people think of nuclear power, they tend to think of devices of mass destruction like nuclear weapons and mushroom clouds. Despite its destructive nature, nuclear power has an important role in the worldwide electricity generation process. Civilian and commercial nuclear power is an integral part of the global energy supply chain and valuable energy source.
Environmentally Friendly and Cost- Competitive
How serious is the global problem with the carbon dioxide emissions? The founder of Greenpeace, James Lovelock declared that "Only nuclear power can halt global warming". The atomic power is the best reasonable alternative to all hydrocarbons. From environmental point of view, nuclear power is a clean, economic and reliable alternative to the burning fossil fuels. It does provide sustainable energy generation that meets clean air objectives. Because of its environment friendly nature, global demand of nuclear power has never been greater and the demand for uranium is surging forward. Moreover, nuclear energy produces electricity at a lower cost than competitive fuel sources. Uranium is a very attractive fuel for electricity production because it is reliably inexpensive to mine and mill. On the flip side, nuclear energy generation is associated with substantial plant construction costs and regulatory fees. Despite all expenses, atomic energy generation remains much cheaper than the other alternatives.
Two of the primary concerns about nuclear energy are its use as a threat threat and the safety of the nuclear reactors. A new generation of reactors is planned using advance technology to prevent other nuclear accidents like Chernobyl in Russia and Three Mile Island in the United States. Uranium mining is making a striking comeback after a significant decline through 1980s and 1990s resulting from its mass destruction usage. Then there has been a bull market in uranium since 2000. Currently there are about 438 operating nuclear reactors, supplying 16 percent of the world's electricity demand. As technology advances, the world becomes more dependent on electricity-based products. Therefore, countries are heavily investing in new nuclear plants accommodating safe new- generation reactors. For instance, China has implemented an aggressive nuclear energy program. China has nine operating nuclear reactors and five more are under construction.
Investing in Uranium
As the concern over cleaner air and global warming are increasing dramatically on the minds of consumers, nuclear power is taking a predominant place in the global climate deal. Plus, the economy is growing at astonishing pace and the soaring demand of electricity has caught the world unprepared for the upcoming boom. Uranium stocks may not be the first thing crossing your mind when you are constructing your portfolio, but its promising future makes it a profitable investment. Investors should consider portfolio diversification by adding a few companies from the mining industry. The popularity of the yellow cake is rapidly increasing, which makes some little-known investments very attractive. Uranium prices are expected to climb at a rapid rate. What can be better than earnings generation from an electricity generation investments?