Sumary of Why Uranium Royalty Stock Jumped 25% and Drove Other Uranium Stocks Higher:
- What happened Uranium stocks took off yet again on Wednesday, with some stocks rallying to dizzying heights during the day.
- 15: One move from Uranium Royalty and a big analyst upgrade on Cameco (NYSE:CCJ) shares sent stocks across the board surging.
- 15, Uranium Royalty announced it had entered into three contracts to purchase 300,000 pounds of key uranium compound in the spot market at an average price of $38.17 per pound for cash, with deliveries expected in September-October.
- Uranium spot price was hovering around $45 per pound on Sept.
- 14. Why is that good news for the uranium market then, you may ask, if Uranium Royalty will buy uranium at prices substantially below spot price?
- Well, the dynamics of the uranium industry is such right now that any purchase is expected to strengthen the market and support uranium prices.
- More importantly, there’s a much, much bigger buyer that’s loading up more and more uranium with each passing day: The world’s largest physical uranium exchange-traded fund, the Sprott Physical Uranium Trust Fund (OTC:SRUU.F).
- By now, investors in uranium stocks are probably already aware of the story unfolding so far: Aggressive spot uranium purchases by the Sprott uranium fund since mid-July is largely why uranium prices have gained an astounding 49% in just the past five weeks.