Uranium Exchange-Traded Funds Enjoying Price Rally

Last week, the Global X Uranium ETF and the NorthShore Global Uranium Mining ETF stocks increased by 11.6% and 13.5% respectively, delivering new gains to investors. The rally for these exchange-traded funds focused on uranium occurred after investors injected more than $1 billion into the funds earlier in the year as many expected a resurgence in the demand for nuclear power. The surge puts an end to October’s unsteady start for both exchange-traded funds, which had been impacted by the increasing prices of fossil fuels.

The growing interest in nuclear power has been facilitated by the worsening power shortages, the race to reduce carbon dioxide emissions and the decarbonization of various industries around the globe. Nuclear power is considered to be an alternative to fossil fuels and a substitute for other renewable energies, including wind and solar power.

In the same week, the French government also revealed that it would assist a state-controlled utility firm to develop small modular nuclear reactors by 2030.  President Emmanuel Macron argues that this move will be the key to decreasing global carbon emissions. The new prime minister of Japan also stated that his country would replace its out-of-date nuclear power plants with small modular nuclear reactors.

Exchange-traded funds that track uranium have been among the best performers over the past two years, overriding a downturn that occurred when investors stopped pouring money into the commodity after the Fukushima Daiichi nuclear disaster that took place in Japan in 2011.

Sachem Cove Specialty Opportunity Fund founder Michael Alkin stated that there’s an increasing realization among individuals in the energy industry as well as those investing in the energy industry that the availability of nuclear power, as well as the fact that it produced carbon free electricity, makes it a key component of the world’s carbon neutral goals. The Sachem Cove Fund also invests in uranium.

Nuclear energy is a controversial energy source that many believe has too many potential risks, making it even more dangerous than fossil fuels. This energy is formed by splitting uranium atoms through a series of chain reactions in a nuclear reactor by a process referred to as nuclear fission. Experts believe that this energy holds promise for the future, not only because it has almost zero-carbon emissions and a high-energy density but also because it’s a low-cost energy and a reliable power source, among many other benefits.

The price rally is, therefore, a positive sign that this vital form of green energy is now getting the attention it deserves and that extraction companies such as Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) may be set to benefit from this improved sentiment towards nuclear energy.

NOTE TO INVESTORS: The latest news and updates relating to Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) are available in the company’s newsroom at http://ibn.fm/UUUU

About MiningNewsWire 

MiningNewsWire (MNW) is a specialized communications platform focused on developments and opportunities in the global resources sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled visibility, recognition and brand awareness. MNW is where news, content and information converge.

To receive SMS text alerts from MiningNewsWire, text “BigHole” to 21000 (U.S. Mobile Phones Only)

For more information, please visit https://www.MiningNewsWire.com

Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer

MiningNewsWire
Los Angeles, California
www.MiningNewsWire.com
310.299.1717 Office
Editor@MiningNewsWire.com

MiningNewsWire is part of the InvestorBrandNetwork.

Archives

Select A Month

Contact us: (310) 299-1717