The best investment in 2020 is not what you think. Plenty of investment plummeted this year, with few exceptions. Gold is rising this year, but it’s not the winner. One of the most hated investments in the world, uranium rose sharply. But uranium mines are still in the red.
Which was The Best Investment In 2020?
Can you guess which was the best investment in 2020, in the commodity market? Probably not. Huge things have happened in the stock, and commodity markets this year. The prices of many assets plummeted, and only a few could rise. In the commodity market, at first glance, gold seems to be the best investment in 2020. The yellow metal has risen 14 percent since the end of December.
But in reality, the race for the best investment in 2020 is led by another yellow substance, uranium. The price of uranium ore, as the charts show, moved in a falling trend almost steadily since the Fukushima Disaster in Japan. Many governments decided to close nuclear power plants. Or at least they stopped building new reactors. Uranium prices today are 48 percent below the December 2010 levels. Although the commodity exchange rate has already risen by 29 percent this year.
The main reason for this year’s rise was the closure of mines and cutting capacity in the sector – wrote Bloomberg. This has reduced supply by a third recently. The coronavirus epidemic even sped up the process. The two major producers, Kazatomprom and Cameco Corp., were further reducing production in April.
Uranium stocks ETF (URA) and uranium futures price, 2011-2020. The red arrow points to the Fukushima disaster, March 2011. (Tradingview.com)
The So Hated Uranium Investment
Uranium cannot be bought by the average person on the commodity exchange. Only by specialized companies and organizations. But, we can invest in companies that mine uranium. One of the easiest ways to do this is to buy a Global X Uranium ETF (URA) registered in the USA. Its share price has also risen sharply since its low of $7.10 in March. But over many years, since the end of 2020, the exchange rate of the ETF has still fallen by a huge 91 percent. (In fact, the loss is some smaller because the ETF also used to pay dividends.) And this year the stock is still down three percent. Another, newer uranium stock product is the North Shore Global Uranium Mining ETF (URNM).
If you like uranium stock as an investment, please do your research or consult a specialist and only decide after that. You can find more articles on uranium investing on the pages U2O8, and Mining.com