4Mon·

Hello everyone,


I often think about investing in the $NUKL (+0.55%) ETF. I have heard that the US has imposed an import ban on Russian uranium. Therefore, I assume that North American uranium companies could benefit from this. Is this just a vague assumption, or do you think there are solid reasons for this?


Facts:

Import ban on Russian uranium:

The USA has taken measures to reduce its dependence on Russian uranium. As part of the sanctions against Russia due to the Ukraine conflict, imports of Russian uranium are being restricted.


North American uranium companies:

There are several major uranium producers in North America, including Cameco in Canada and Energy Fuels in the USA. These companies could benefit from reduced competition from Russian suppliers.


Rising uranium prices:

The reduced availability of Russian uranium could increase demand for North American uranium, which could lead to higher uranium prices. Higher prices could increase the profits of uranium producers.


Political support:

The US government has announced its intention to promote domestic uranium production in order to secure the national energy supply and become less dependent on foreign suppliers.


Long-term demand:

With the global movement towards clean energy and the increasing need for nuclear power as a low-emission energy source, demand for uranium is expected to continue to increase in the long term.


In summary, there are some solid reasons to believe that North American uranium companies could benefit from current geopolitical developments. An investment in the $NUKL (+0.55%) ETF could therefore make sense in the current situation.


What do you think?

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14 Comments

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I can imagine that the ETF will benefit greatly from rising demand in the coming months and years. I am also considering investing.
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Kazakhstan is the largest exporter of uranium.
So either $KZAP
Or the North American variant $CCO
The ETF is already relatively expensive with a TER of 0.55%.

Edit: I don't think uranium mining in the USA is sustainable, especially for environmental reasons, which are slowly gaining in importance in the USA too.
Nobody wants to have a mine like that in their neighborhood, so I would rather bet on Kazakhstan.

Or $YCA, which buys uranium, stores it and sells it on at a profit
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