NXE - The Big Reason Uranium Stocks Soared Today
Uranium stocks were on fire today. While Uranium Energy (NYSEMKT: UEC) and Denison Mines (NYSEMKT: DNN) had popped 12.5% each by 3:35 p.m. EDT, NexGen Energy (NYSEMKT: NXE) and Energy Fuels (NYSEMKT: UUUU) were up 5.2% and 6.5%, respectively, by that time. Thank a potentially game-changing new uranium exchange traded fund (ETF) that began trading on Canada's Toronto Stock Exchange.
The Sprott Physical Uranium Trust fund, which was formed by Sprott Asset Management after it took over uranium asset investment manager Uranium Participation, started trading on the Toronto Stock Exchange on July 19.
Here's why it's such a big deal: The Sprott Physical Uranium Trust is the world's largest uranium fund that invests in physical uranium. The entry of such a large, actively managed fund could prove to be a game changer for the uranium market as the fund will provide investors looking for exposure to uranium with an easy, liquid option to park their money into. That should spur demand for physical uranium, which could go a long way in boosting the metal's price. For perspective, the fund purchased 100,000 pounds of uranium compound on its first day of trading.
For further details see:
The Big Reason Uranium Stocks Soared Today