Uranium is the New Black


1/20/20231 min read

Much like any commodity, Uranium's price on the market is influenced by supply and demand and political impulses. These can cause uranium prices to increase or force prices to decrease because of the presence of cheaper and more accessible energies, such as natural gas.

But as we know from our current position, Russia holds all the cards in this space, and America's' Strategic Petroleum Reserve ' is running a little low ( understatement ). So it's time to roll back the years and get those Nuclear Power Stations up and running again

However, Uranium does not get traded on the London or New York Stock Exchange, but it is bartered through contracts negotiated between a buyer and a seller

These uranium agreements can be valued with a "single fixed price" or may have a primary "base price", specifically the uranium spot price.

A spot market contract is usually priced "on or near the published spot market price" at the moment it is purchased.

While demand is increasing for uranium, there are both advantages and disadvantages to consider in this metal. The benefits include safer and more efficient nuclear power plants. The kind of energy that is produced is clean with no greenhouse gases and the cost of operating a nuclear power plant is inexpensive. Furthermore, only a small quantity of the metal is needed to create a substantial amount of energy.

In terms of the disadvantages of uranium, it can have deleterious health effects and can lead to death because of its radioactivity. Radioactive waste is also an additional issue, if it is not disposed of at a safe place and not stored properly, it can leak radiation. Such emissions can last for centuries. Accidents can also lead to devastating effects, which can lead to events such as Fukushima. Additionally, the process of building new nuclear plants can also take years to build and may cost an exorbitant amount of money.