The Sprott Physical Uranium Trust just dropped a bombshell, announcing plans to scoop up a massive US$200 million worth of physical uranium.
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The market’s reaction was immediate. Spot prices surged 9%, jolting a sector that’s been quietly simmering for months.
Suddenly, uranium isn’t just making a comeback; it’s going full throttle. And with that, the big question emerges: Has the buying spree officially kicked off, throwing the spotlight back on some of the ASX’s most overlooked uranium stocks?
Before we dive into the stocks, it’s important to remember, uranium has always been a wild ride, known for its brutal boom-and-bust cycles.
But this time, the setup feels different. Beyond Sprott’s headline-grabbing announcement last Wednesday, governments around the world are ramping up support for nuclear energy as part of their clean energy strategy.
And taking a look at the charts? They’re starting to sizzle.
With spot prices hovering just below the key US$75 resistance level, a clean breakout could light the fuse for a sharp rally back toward US$100.
Back to the ASX, the momentum is building. Paladin Energy (ASX: PDN) is firing up its Langer Heinrich mine. Boss Energy (ASX: BOE) is ramping up production at Honeymoon. Deep Yellow (ASX: DYL) is stacking up assets across Namibia and Australia. These aren’t just speculative plays anymore; these are real operations, with real production plans, moving into a market where demand is outpacing supply.
And that’s exactly the kind of environment where uranium stocks can go parabolic.
Put simply, the signs are everywhere. Volume is rising, liquidity is returning, and the smart money is clearly positioning before the crowd catches on.
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For investors, this isn’t just another bounce in a commodity; it’s the early stages of what could be a uranium super cycle.
So, the real question is, are we on the edge of a uranium breakout that sends the whole sector into overdrive? Because if momentum keeps building, we’re not looking at a slow grind higher, we’re looking at the kind of explosive move that catches most investors off guard.
For now, good luck and good trading.
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Disclaimer: While Wealth Within holds an Australian Financial Services License (AFSL:226347), the information featured in this program is general in nature and therefore should not be relied upon. Before making any investment decisions, you should consult a licensed professional who can advise whether your investment decisions are appropriate for you.
Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.