Essentially title says it all. I am not convinced that the current supply shortages of uranium and the US and EU’s tepid consideration of nuclear as a sustainable/renewable energy source is enough to classify a uranium ETF a strong buy. Plants are still being decommissioned at a higher rate than new projects are being financed and I also don’t see the US and EU’s recent acknowledgment of nuclear as a steadfast commitment to the technology (to the same extent they are committed to wind/solar). Sure the uranium spot price has increased YoY but the price is still not high enough to justify the expansion of new more resource intensive extraction projects. Also I see the politicization of nuclear and the limited supply as a reason why it’s maybe not the future and could be seen as more trouble than it’s worth.
Anyway, this is my elementary view. Would love to hear alternative and opposing views as I do think nuclear is a decent alternative to fossil fuels and more reliable than renewables like solar/wind.
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