Here and there I see opinions that Uranium has just changed its long-term trend, so I think about investing a bit through some ETF. Is anyone doing it already? If yes, which ETF you have chosen and why?
The same could be said about Silver, no?
I hope so, because I’m invested there since ~May 2020 (through ZSIL). Plus - looking from technical analysis perspective, potential for uranium looks higher at this point. Hence my question about best ETF. I guess the best idea is to go with ETF backed by physical uranium. Sprott?
Yes, I invested in UEC (went well in the last weeks). Alone in China there are building >50 (!!) reactors. I think the transition to green will take a bit longer than expected.
P.S: I also was invested last year in Palladium (ZPAL) that also seems to suffer a trend-change now. There I am less optimistic as 80% of Palladium is used in catalytic converters.
Yes. But only according to my own IPS
I found URNM a very good low maintenance ETF with relatively high exposure to miners as URA got a bit diluted over the years.
Another good vehicle could be the Sprott Physical Uranium Trust but that one did not exist when I first looked into this market.
What’s your strategy to get exposure to uranium? I feel the narrative is quite strong for the upcoming years.
To be honest, I don’t have any strategy, it would be rather buy now and sell in few months, if it goes hopefully up ;).
Maybe you red too much on reddit about Uranium
If you don‘t have a strategy, I would stay away from it… or do more research why it would be a good investment. Also, you should consider what the fair price of Uranium would be so you can define your entry and exit points.
My personal opinion is that I don‘t invest in non-productive assets - including Uranium.
This commodity investment are often based on uranium futures and same as oil (WTI) will be impacted by the contango effect
I feel you! Read up! You must understand the narrative of the market before you invest. Some pointers to deep dive:
- Understand Supply: What’s produced, what mines are active, what future mines are planned, etc.
- Understand Demand: What’s currently used, what reactors are planned, what’s the narrative regarding CO2 neutral energy, how much electricity will be produced by other means, etc.
- Understand Market Players: Who’s buying, who’s selling
- Understand Reserves: Above ground, below ground
If you understand those factors you will see that your time horizon must be longer term than a few months. It’s not bitcoin and not GME
Thanks for all the comments. To be honest I don’t have time and willingness to spent too much time on it. This means that I would rather invest the amount I can forget about it for long time if it goes wrong.
Lol I did exactly that and checking the uranium guy posts.
I put something in UUUU
Since last year it seems to be an amazingly good “strategy”. Very bizarre times we live in.