Market Vectors Nuclear Energy ETF (NYSE:NLR) - Great Uranium Play

Market Vectors Nuclear Energy ETF

We continue to talk at Commodity Surge on the uranium industry, which is sure to explode in the years ahead, based on the over 200 new nuclear plants in various stages of planning or construction around the world. Market Vectors Nuclear Energy ETF (NYSE:NLR) is a great way to play uranium, and it has other benefits as well.

For example, the nuclear ETF is also a way to participate in emerging markets, as the vast majority of the nuclear plants will be built in those countries.

Even with attempts to increase production, the uranium mines in the world won't be able to supple the growing demand for uranium any time soon, and that ensures prices will eventually start to rise again as a consequence.

In the middle of 2007 uranium spot prices had reached as high as $136 a pound, but plunged along with everything else during the height of the economic crisis, to about $45 a pound today.

I don't see a much simpler and better way to invest in uranium unless you absolutely have the time to delve into every part of the industry. The other great things is low fees of an ETF and not having to deal with the prospect of trading in foreign markets. This applies to Market Vectors Nuclear Energy ETF because most of its holdings are tracked on foreign exchanges.

Any downside here? Sure. Like almost every investment today, much depends on the time a real and sustainable economic recovery arrives, and whether or not, or how long it takes, to enter another recession.

This is important because of the spending aspect of the sector, which would be cut back in a big way if things go sour economically again.

Even so, I look at this as a long-term play, and even if things go bad, I think nuclear commitment from countries around the world is here to stay. It's not a matter of if uranium prices will go up, it's only a matter of when.

Market Vectors Nuclear Energy ETF

Investing in Market Vectors Nuclear Energy ETF (NYSE:NLR)

Market Vectors Nuclear Energy ETF (NYSE:NLR)

Nuclear energy is on the verge of making a huge comeback, and along with it will be those who understand the best ways to invest in uranium, which will struggle to supply the growing demand for the material.

America is going to bring some new nuclear reactors online, and the ever-demanding China has plans to build three times as many nuclear reactors to supply the needs of its people than the rest of the world combined.

Including nuclear reactor being planned, currently under construction, or in the approval stage, they number just under 500 across the world, showing the potential demand uranium will experience for years into the future.

One way to play this is through the Market Vectors Nuclear Energy ETF, which has a goal of mirroring the DAXglobal Nuclear Energy index as closely as possible after you take away various expenses and fees.

Another factor to keep in mind is the ETF has the normal practice of investing a minimum of 80 percent of its assets into global companies working in the nuclear energies business.

Market Vectors Nuclear Energy ETF (NYSE:NLR)