URNJ ETF

Geopolitical factors are playing out for uranium prices as Russia restricts exports to the United States. The move countervails a similar move by the U.S. to restrict imports of uranium from Russia, which could be bullish for prices.

Uranium mining exchange-traded funds (ETFs) are having a strong October thus far. One of the reasons for the increased investor interest is the use of nuclear power by big tech.

URNJ: The Demand For Uranium Continues To Grow

The current correction in the uranium sector provides a compelling opportunity to accumulate a position. Fundamentally, the supply increases over the next two years are insufficient to meet the emerging demand. In particular, Kazatomprom is struggling to increase production, while geopolitical tensions are causing additional arbitrary tightening.

After reaching over $100 per pound to start 2024, uranium prices have tempered since. But more tailwinds could keep pushing prices higher.

Uranium has been been one of the best-performing commodities. Prices will take an eventual breather in the natural course of market behavior.

Sprott Junior Uranium Miners ETF provides exposure to junior uranium miners, essential for sustainable energy growth. The portfolio heavily concentrated on the top 5 holdings, including Paladin Energy Ltd. and Denison Mines Corp. Offers diversification in the uranium mining industry, but comes with high volatility and risks associated with junior miners.

Small-cap mining companies have the potential to make pronounced moves to the upside when the associated commodity is pushing higher. That's exactly what the Sprott Junior Uranium Miners ETF (URNJ) is doing after the United States banned Russian uranium.

Due to the ongoing conflict between Russia and Ukraine, there was already widespread speculation that the United States would impose a ban on Russian uranium imports. This speculation was confirmed when President Joe Biden officially announced the ban, creating opportunities for two uranium mining exchange traded funds (ETFs).