Can You Invest in Uranium Directly?

7/1/2021

Energy

0 min read


Image Credit: IAEA Image Bank (Flickr)

This Firm Facilitates Direct Investment in Physical Uranium

Sure, Robinhood provides the ability to invest in fractional shares, and you can trade 7 different
cryptocurrency coins, but can you buy 50 tons of physical uranium?

In a press release dated this past Tuesday, Uranium Trading Corporation (UTC) announced they were the facilitator of the purchase of uranium for a large multifamily office. The initial purchase amount is for 100,000 pounds of U3O8. Not too long ago a physical investment in U308 would have seemed impossible. Today the doors are opening on once undreamt-of investment fronts – holding this increasingly popular commodity is just another one.

Background

The demand for uranium is expected to exceed its supply in the near future. UTC, founded in 2018, was formed to provide the means for investors to invest in business opportunities in the civil uranium market. The means to transact in the fuel involves UTC, a corporation that directly invests in natural uranium oxide in concentrates (“U₃O₈”) and uranium hexafluoride (“UF₆”) and a company named 92 Trading, LLC which will provide management services to UTC. 92 Trading is engaged in pursuing commercial business and providing trading opportunities in the international uranium market. Its objective is to generate value for UTC investors and provide a pathway for it to invest in the storage of physical uranium with the goal of achieving capital appreciation resulting from any price increases due to expected future fundamental supply and demand imbalances.

As it relates to this transaction for the family office, David Berklite, CEO of Uranium Trading Corp said, “We are excited to have the opportunity to open up a market that has historically been isolated from the financial investment community,” he added “This purchase comes at a time when supply is being shut in globally and demand from reactor new builds continues its accelerated growth trajectory. As an asset class, uranium as a commodity represents what we believe to be a compelling opportunity with almost no correlation to any other asset class.”

No other details about this transaction have been given. Channelchek reached out to spokesman for UTC, for further information. We will pass anything pertinent along to our readers as they respond. Channelchek also discussed this with Noble Capital Markets Senior Energy Analyst Michael Heim, he commented, “…there is definitely a trend towards more speculative uranium trading.” Heim followed with, “…they now trade uranium futures, @UXX.1 on CNBC and UX=F on Yahoo, but they are very thinly traded.”

Take-Away

The move away from carbon-based fuels has caused a move toward uranium as a possible replacement for reliable energy for electric generation. Uranium has come back into vogue just as some large mines have closed or reduced output. Investors are looking to capitalize on what they now see as a recipe for higher uranium prices. Most trade in mining companies (see partial list below), it now appears direct investment is not impossible.

Paul Hoffman

Managing Editor, Channelchek

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