The shelf life of the uranium trade may be long.
According to John Ciampaglia, CEO of Sprott Asset Management, a “real shift” is underway due to rising global energy demand.
“We’ve been talking about non-stop uranium and nuclear energy in Splot for four years. We’ve been very bullish in this segment,” he told CNBC’s “ETF Edge” this week.
The Ciampaglia company runs the Sprott Physical Uranium Trust (Sruuf), which Morningstar ranks as the world’s largest physical uranium fund. It has increased by 22% over the past two months.
The company is also behind the Sprott Uranium Miners ETF (URNM), which has grown almost 38% over the past two months. Sprott’s website lists Cameco and Nac Kazatomprom JSC as the top two holdings of the fund as of June 12th.
“the [uranium] A reliable form of energy. There are zero greenhouse gases. According to Ciampaglia, it has a very good long-term track record.
Ciampaglia notices that attitudes are changing towards nuclear energy as it provides energy security with its low carbon emissions. Uranium is “incredibly energy denser” compared to most fossil fuels, he said.
He cited the 2022 energy crisis in Europe and the breakdown of the grid in Spain and Portugal in April, in the case of safer energy sources, after Russia cut oil supply to the region.
“I think this trend is long-term, secular and durable,” says Ciampaglia. “I think every country in the world has returned to nuclear power, except Germany. This is a very powerful signal.”
“We need reliable power.”
Vanek CEO Yang Van Eck is also deeply involved in the uranium space.
“We need to have the strength to be trusted,” he said. “These data centers can’t go down for just a second. They need to be running at all times.”
His company is behind Vanek Uranium and Nuclear ETF (NLR), which has grown by around 42% over the past two months. According to the Vaneck website, as of June 12th, the top three holdings were Oklo, Nuscale Power and Constellation Energy.
However, he argues that there are potential drawbacks to the uranium trade. Construction of a new nuclear power plant can take years.
“What will happen in the meantime?” Van Eck said. “As we know, investors are not patient.”
Van Eck also believes that the Trump administration’s positive attitude towards nuclear power could quickly track development.
He highlighted the nuclear technology company Oklo during the interview. Its shares surged Wednesday, and the company announced it expects a contract with the Air Force to supply nuclear power to Alaska bases.
The agreement came shortly after President Donald Trump signed a series of executive orders in May, reshaping the Nuclear Regulation Authority, promoting the construction of new nuclear reactors, and expanding the domestic uranium industry.
“Trump controls federal lands, so that’s not nimby [not in my backyard] There are risks like potential risks,” Van Eck said.
