The Case for Explosive Price Growth in Uranium - and the Best ETF to Play

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.

Source: How To Play The Uranium Breakout

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.

It's a Bull Market in Uranium! How to Invest in 2011

Read my article How to Play the Uranium Breakout at Hard Assets Investor.

It's a bull market in uranium—again!

Uranium's price was "in the tank" for the longest time, thanks to the massive supply provided by retired Cold War nuclear weapons. That supply started to exhaust early in the last decade, which prompted a uranium moonshot (see chart below).

Like most commodity superfast rallies, this one ended in tears. But uranium has since risen from its radioactive ashes—after forming a "higher low"—and recently broke out to a two-year high:

Breakouts always catch our eye because commodity markets have a tendency to rise much higher and farther than anyone think—which can be very profitable for investors like us.

Should this uranium breakout be bought? And if so, how can you best integrate it in your portfolio?

Higher Demand, Less Cheap Supply

Like crude oil, there's plenty of uranium available to satisfy global demand—if you're willing to pay up, that is. Because like crude, much of the "cheap" uranium, has already been extracted from the earth.

Please read the rest of my 2011 Uranium Investing Analysis here.