(WNN) The Sprott Physical Uranium Trust has hit $1 billion in assets since July launch, with uranium holdings of 24,274,212 pounds U3O8 (9337 tU). The surge has been linked to an increase in activity by investment funds and new funds in the nuclear spot market
Matt Lichtenwald, a research manager at Cameco, says the surge in uranium prices is caused by “bid pressure,” from investment funds and new funds.
Lichtenwald says the increased activity is helping in price discovery, giving investors a broader look at the demand and supply dynamics. The equilibrium is seen to aid in determining the uranium price based on actual costs.
Analysts say the increased participation in the uranium spot market is creating a balanced future and a healthier market.
It still remains to be seen how the participation of investment funds will affect the secondary supplies of uranium to consumers. Analysts warn that the spot market should not be viewed as a reliable source of large uranium purchases in the long-term.
UX1! is up +4.95%.
