Tom Lydon reports that the Global X Uranium ETF, which tracks uranium miners, has stumbled for several years and over that time, there has been no shortage of uranium market observers voicing bullish opinions on the commodity. Uranium remains controversial even five years after the 2011 Fukushima incident in Japan (No one died or was irradiated). In response to the fallout, anti-nuclear activists have aggressively petitioned courts to block restarting the plants. Japanese Prime Minister Shinzo Abe has also been a vocal nuclear power proponent, arguing that atomic power, which generated almost one-third of Japan electricity pre-Fukushima, helps diminish the country reliance on expensive fossil fuel imports. There are fundamental factors that favor an eventual rebound in uranium stocks. Countries like Japan, Germany and a host of other nations dreaming of giving up on Nuclear energy are well just dreaming.
Japan is now re-embracing nuclear, as will Germany and or any other country with hopes to wean itself away from Nuclear power. It is either nuclear power or coal, and since these countries claim to be fighting global warming, they will rather embrace nuclear than coal, according to Mining.com. Another often cited catalyst by uranium bulls is emerging markets demand. In 2013, nuclear power contributed around 5% of the world total energy supply, and is a major source of energy in developed markets like Europe (26%) and the US (20%). According to analysts, nuclear power output is expected to grow faster over the next five years than over the last 20 years. This demand is largely being driven by emerging markets which have massive electricity needs, but are struggling with air pollution issues, like China and India, according to Global X research. With nuclear energy industry looking brighter, uranium demand is expected to begin to rise over the next few years.
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