Is a uranium exchange traded fund a buy due to cheap valuations in mining companies and the depressed uranium spot price.

Global X Uranium ETF (NYSEArca: URA) has bounced somewhat after a steep decline that started in late July. The fund tries to reflect the performance of global companies engaged in the uranium industry.

“With very few exceptions, we see these countries continuing their commitment to nuclear energy. India, China, France, Russia, South Korea, the United Kingdom, Canada, the United States, and almost every other country with a nuclear program are maintaining nuclear as a part of their energy mix,” according to a Cameco (NYSE: CCJ) analysis note, reports Dave Brown for Uranium Investing New.

While Cameco projects a 3% decline in their previous estimates of global uranium demand over the next decade, the company calculates that the industry will continue to growth around 3% annually.

According to TradeTech, uranium spot prices are falling because of a higher willingness from suppliers to reduce their offering prices as a way to bring in buyers.

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