- Uranium is the element that is processed into fuel for nuclear power.
- Nuclear power's economics are essentially independent of uranium prices as the cost of producing nuclear power is extremely inelastic to fuel prices.
- With the Russia-Ukraine conflict showing the strategic weaknesses of the green push, nuclear could become a megatrend again after years of being on the out.
- Sprott's uranium vehicle is worth some consideration on structural advantages of uranium in nuclear power and the strategic shift around renewables.
- Just consider that as a physical trust its expense ratios are higher than an ETF like the Global X Uranium ETF, which are also good options for betting on uranium spot prices.
For further details see:
Sprott Physical Uranium Trust Benefits From Inelasticity Of Nuclear To Fuel Costs