Why Are Uranium Prices Spiking, and Will They Rise Further?
- By Nick Lawson
- 3 min read
As the world concentrates on natural gas and oil prices, uranium has doubled this year. The move follows a 10-year secular bear market after the nuclear accident at the Fukushima Daiichi nuclear power plant in 2011. Having hit a low of $19/lb, uranium recently touched $50/lb, with +50% of those gains generated in the last two months.
Hedge funds and the Sprott Physical Uranium Investment Trust (SPUT) catalysed the recent gains. Since launching in August, SPUT has quickly run through its initial $300mn AUM and has accumulated $1.5bn worth of uranium. SPUT is now the world’s largest physical ETF.
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