The breakout in uranium – and uranium miners – continues, as Global X Uranium ETF URA powers out to new highs:
It is an all-out bull market in “the other yellow metal.” (Source: StockCharts.com)
Last month we broke down the supply and demand fundamentals for uranium, and concluded that things looked pretty promising.
URA was a new kid on the scene at the time – but appeared to be a reasonable proxy for playing this radioactive bull market:
URA just began trading in early November, so we have a limited sample of historical results. But so far, the ETF has trended up, in tandem with uranium’s spot price, as expected. With its not-unreasonable 0.69 percent management expense, I see no reason offhand why it shouldn’t serve as a reasonable proxy for the price action of uranium stocks at large.
And good old Cameco – which makes up a sizable portion of URA – is on the move too, running out to three-year highs.
Multi-year highs in energy should be bought, everywhere and always. So, I will look to pick up some URA for my portfolio later this week.
Further reading: My previous piece on why and how to play the uranium breakout.