How can I invest in uranium aka “yellowcake”?
Cameco is one option, it is the largest uranium miner and also has a nice gold mining business. However, the company has been having some problems with its Cigar Lake mine, which is one of the largest uranium mines. A little more speculative is Fronteer Development Group, FRG, which has a ~40% stake in one of the largest uranium mines in the world. However, like Cigar Lake, the mine is not yet developed (and won’t be until 2015 or so) which presents some risks if there are problems with its set-up. There are also U3O8 futures contracts that trade on the NYMEX in increments of 250 lbs. (currently $55 per pound) which are financially-settled meaning you cannot physically take possession of the uranium (to prevent it from getting into unwanted hands). Finally there are also a lot of speculative companies based out of Canada that are involved in uranium mining, consider searching for them. Just some thoughts, I hope they help. Best of luck!
