☢️ URANIUM: THE NEW FUTURE ☢️
The energy transition has the dilemma between efficiency (price/power) and cleanliness. Obviously, oil cannot be replaced in an absolute way because it has other uses, but the world will move towards other resources, especially the superpowers, to avoid dependence on this commodity and change the economic dynamics, where the environment is something tangential to the underlying problem.
Uranium may be the answer for the mid-long term, while hydrogen fusion energy is still under development. The problem is the negative propaganda generated by the Chernobyl (negligence) and Fukushima (atypical) accidents, and concerns about radioactive waste (manageable). It is used for electrical energy production (nuclear fusion) and weapons (enriched); radiotherapy (medicine), and alloys for the aerospace industry and shielding (depleted).
In that sense, the correlation between uranium and oil is ±33% and ±7% with natural gas, based on a 1-year weekly data. In case with coal is the oposite with -21%. In other words, any price movement could more less reverberate with oil (positive) and coal (negative); except with natural gas that is undetermined.
Perhaps the most relevant is the high correlation with gold, cellulose and timber and silver. Their future relevance will set it as a long run asset. Its relevance will come from trust, civil consumption and the possibility of a paradigm shift in its use. Nonetheless, the uranium market must mature, and its relatively long lifespan may make it difficult to market and find detractors.
The best analysis is yours!
Copyright: Joel Padilla 2023
Comentarios
Publicar un comentario