Book Online or Call 1-855-SAUSALITO

Sign In  |  Register  |  About Sausalito  |  Contact Us

Sausalito, CA
September 01, 2020 1:41pm
7-Day Forecast | Traffic
  • Search Hotels in Sausalito

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Uranium Is Garnering Interest, But It's Hard To Invest In - Uranium.io's Latest Innovation Paves Way For Increased Liquidity, More Sophisticated Financial Instruments

By Meg Flippin Benzinga

However, investing in uranium has never really been easy. Up until recently, investing in physical uranium was reserved for institutional and accredited investors. The lack of pricing transparency and the need for a lot of capital to purchase uranium relegated the little guys to the sidelines. 

Then uranuim.io came along and changed everything, launching an online uranium investing platform for everyone. It's the first platform that enables everyday investors to buy, own and trade physical uranium, specifically uranium ore concentrate (U3O8). Uranium.io does this by tokenizing a lot of uranium ore concentrate (U3O8) that is stored in a regulated storage facility operated by Cameco, one of the three globally recognized uranium conversion and storage providers. Investors purchase fractions of physical uranium as xU308, with beneficial ownership administered in the form of a smart contract ledger. Each xU3O8 represents a unit of ownership of U3O8.

Bringing Much-Needed Pricing Transparency 

But increasing access to uranium wasn’t enough. Now, uranium.io wants to overhaul the entire market, this time bringing pricing transparency with its near-real-time uranium pricing oracle. Uranium.io’s proprietary price feed aggregates market data from multiple market sources and uses advanced algorithms to deliver near-real-time spot uranium pricing estimates that reflect market trends. 

“Price discovery for uranium isn't just happening in the uranium spot markets but across a wide array of economically related assets,” says Arthur Breitman, co-founder of Tezos, which powers Uranium.io. “The oracle starts a virtuous circle by injecting this information back into the uranium market, which in turn can improve its liquidity and foster better price discovery in the spot market.”

The system updates every 60 seconds and takes a holistic approach to price calculation by ingesting market data from a wide range of assets that directly or indirectly reflect changes in the uranium spot price. They include:

  • Uranium-focused ETFs and trusts that hold physical uranium or track the sector.

  • Uranium miners and other energy producers whose valuations reflect uranium price expectations.

  • Specialized funds that act as financial proxies for physical demand.

By applying a statistical model to these inputs, the feed on uranium.io filters out noise and produces a predictive estimate of uranium’s real-time spot price. The methodology ensures the price reflects ongoing market sentiment, rather than waiting for delayed updates. 

A More Liquid Market?

Uranium.io’s pricing feed addresses a critical gap in the uranium market – near-real-time pricing. As it stands, uranium sales operate through individual transactions and delayed reporting, creating inefficiencies for investors and financial institutions seeking accurate market data. Unlike other commodity markets with transparent, near real-time pricing, price discovery is opaque and limited to over-the-counter transactions. 

Without real-time reference uranium spot prices, it has been hard for liquidity to grow and for the market to really take off.  The team behind uranium.io hopes its price feed changes that, and if first reviews are any indication, it may very well be on to something.  

"For years, we've had to piece together uranium pricing from fragmented sources and delayed reports," said Crispin Clarke from Curzon Uranium. "This oracle finally gives us the near real-time data we need. It's a game-changer for how we operate and advise our clients."

Having a pricing benchmark benefits the uranium trading market in several ways. For starters, it helps attract more investors and thus liquidity to the market, making it a more viable place to invest. Plus, a benchmark is necessary for futures, options, perpetual contracts and other structured instruments. The live price feed provides this missing foundation, enabling the creation of sophisticated financial products for risk management and speculation. The live uranium spot price feed can also enable uranium-related contracts to serve as credible collateral in lending and borrowing arrangements and enable the market to establish a consensus price.

Moving forward, the uranium.io team plans to improve the robustness of the pricing by adding more inputs, improving speed and quality and enhancing the modeling. The long-term goal is to create a benchmark that is strong enough to stand on its own. 

The uranium market has long been closed off to the masses thanks to inefficient pricing and huge barriers to entry, at a time when a new wave of demand has been driving outsized growth. Uranium.io is helping change that. From providing access to everyday investors to bringing much-needed price transparency to the market, uranium.io is on its way to transforming uranium from a niche, opaque commodity into a fully integrated asset in global financial markets.

Featured image from Shutterstock.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

This content was originally published on Benzinga. Read further disclosures here.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.
 
 
Photos copyright by Jay Graham Photographer
Copyright © 2010-2020 Sausalito.com & California Media Partners, LLC. All rights reserved.