Raw uranium prices hit a nine-year high last month, enticing new investors into the market for the time since the financial crisis hit in 2007, FT reported.
Prices of nuclear fuel uranium have rallied by 37%, with raw uranium or yellowcake hitting its highest level in nine years to $50 a pound last month, attracting new investors since before the financial crisis when prices rose to a record $136 a pound in June 2007.
Investment managers believe the steep increase in natural gas and coal prices has dampened the energy crisis in Europe and China further and has driven the raw material back into the spotlight.
A number of funds have been bullish on the raw material, such as Light Sky Macro, Anchorage Capital, and Tribeca Investment Partners. Tribeca’s Ben Cleary said the market had been patiently waiting for the rally, with speculative money coming back after massive swings in September.
Light Sky Founder Melkman said the price movements come after the growing focus on green energy at a political level and the growing demand for sustainable assets in the investment community, which would drive uranium into among the most asymmetric trades moving forward. URA is up 3.94%.