The uranium price is determined by the use of this raw materials. The last couple of years, its price has been plummeting, because of its increase in use. Because of this, more suppliers are offering it and the price of uranium can be lowered because of the market. More and more tests with nuclear weapons and rocketrs are being done, in which uranium is a very important factor. This chemical element is U and can be found as atom 92 in the books. A fun fact is, that this atom is the strongest atom of all of earths known atoms. It was discovered in 1789 by a German scientist and became a hugely important raw material in the United States at the start of the 20th century. Besides that, uranium was a core component in the second world war, when a lot of nuclear weapons were being prepared. Nowadays it is also widely spread throughout Asian countries.
How is the price of uranium determined?
The uranium price consists of 2 parts. Firstly there is the price for the raw material for long term contracts and a spot price for incidental buys. Often contracts with a uranium price are set for a certain set amount of years. The uranium price chart does bounce up and down regularly, which makes it a very interesting raw material to buy in to every now and then. In 2016 we had a very large drop in the uranium price from 70 dollars to 20 dollars. But we will have to note it is important to pay close attention to detail when buying incidentally. Because you are using the spot market, there is an extra fee that comes with this. Buying uranium at a certain price might now be interesting for a low amount, because only with a large amount of buy-in will you get the maximum advantage of using the spot market.
What is uranium used for?
The uranium price is mostly important for governments. They invest the most in keeping nuclear energy going and are interested in the production of nuclear weapons. Uranium is mostly used in creating nuclear weapons like rockets that North Korea makes nowadays. But also the United States is busy getting their production up to speed for this. Nuclear energy is an easy replacement for current normal energy and seems to be more efficient (side note: There are also downsides to using nuclear energy. Please do your own research). This also makes it interesting to investors and energy companies to invest in. After the dip in 2017, there were only 10 companies responsible for gathering uranium. Luckily this amount is increasing now as well and we can see a small stabilization in this market.
Who is the uranium price most important to?
Mostly governments, companies and investors benefit off of a great uranium price. The better the uranium price chart, the happier these players get. But besides the buyers, investors also have a great deal to do with these prices. They are the ones that mostly make it possible for the rockets to rise up to the sky. On the other hand there are also countries where investors are needed to producte nuclear weapons. Without these people, governments and investors would not have enough money to buy the products. The demand for these products make it so that there currently is a good price for uranium. Not only for nuclear rockets, but also rockets that go up to the moon. Big names like Elon Musk and his Space X rockets are in need of uranium and Amazon founder Jeff Bezos launched his rocket a while back. The expectation is that this will happen more and more the upcoming years, which would increase the price of uranium and its charts.
What’s the deal with companies and the uranium price?
Companies and investors have the biggest influence on the price of uranium. They determine in most cases how much of this raw material needs to be bought in the upcoming years. Besides that, companies are always looking for new investors to be able to buy even bigger shares of uranium. It’s a substance that does not go bad, so a good long-term investment. In the future we will see companies use this even more, so to have a supply at hand would never be a bad thing. In the last 3 or 4 years we see that the demand has increased a lot, which slowly creates in increase in the price of uranium. The uranium price chart is showing a slight incline there. Governments also see this as an opportunity to protect their countries, because a lot of countries create nuclear weapons out of this chemical.
Uranium is used in these products
The uranium price is stabilizing a little over the last few years and the uranium price chart is slowly showing an incline. Uranium is being used a lot as fuel for nuclear weapons, but also for launching rockets. Scientists do a lot of research on this fuel and what they can use it for. It could be ideal if we can use this as a fuel for our cars in a couple of years, because the CO2 that it releases is way lower than a lot of the regular fuels. There are currently too many dangers in using uranium, so it is not possible yet. Scientists do claim that they are getting cloers to a solution each day, but this could still take another couple decades. It is not just the research and knowledge that transform uranium, btu the price and budget also have massive impact on the speed of this development.
Where can you find the best uranium price?
The best uranium price can usually be obtained by accepting a long-term contract. At this moment we can see that the uranium price chart is slightly inclining. This means that it gets more expensive the longer you wait. Getting a contract for multiple years would lock in the price and prevent you from paying too much and actually possibly paying less than the actual price in a given year. It must also be said though, that the price of this raw material could also drop. Researchers are discovering more things that has uranium in it. This means the supply of uranium could increase a lot and that means the price could drop. At this current moment though, that is not enough yet. We are using more and more of this chemical, as we want to make travelling to the moon a possibility. Because of the big names involved, there is a lot of capital involved. This meanas the price will most likely only be higher in the future.
The price of uranium in 2022
For the first time in years, we have seen the prices for uranium rise slightly in 2022. This is because there is an increasing demand for this raw material. Though this is not the case for everyone. In most cases, companies have a set price for uranium of 3 to 15 years. Some companies are not noticing any of the increases in their wallets. At the beginning of 2021, the price was around 27 euro, which increased to the end of the year to around 40 euros. Uranium is not only used to build weapons, but also the replace batteries and fuels. This is in its infant stage, but does increase the price.
What to expect in 2022
Comparing january 2022 with january 2021, we see that the price of uranium has almost doubled. Where the price chart used to show 27 euros, it now shows 43.50. Months into 2022, we have seen the price reach over 59 euro per kilogram. Analysts at the World Bank of America predict that this price will only go up.
This is partially caused by the war between Ukraine and Russia. The raw material uranium is not becoming more expensive per se, but the uncertainty in the market causes it to rise. Of course a lot of countries want to store enough of uranium in their own country. Not just to prevent Russia from getting it, but also to secure and create safety in their own country. Hedge funds also started trading in uranium because of it.