Uranium is currently trading at prices not seen for months, and appeals to speculative investors like hedge funds to get started. As the U.S. consulting company Ux Consulting tells in her latest monthly report, yellow cake listed for immediate delivery was the third consecutive week at more than 48 dollars per pound (454 grams). Compared to the low of March 2010 is a price increase of 19 percent.
Given the low interest rate environment, professional investors speculate on the search for yield except with classics such as stocks , bonds and gold, more with exotic plants. Therefore flow for months billion in agricultural commodities and push up prices there to the highest levels in years.
Even six years ago hedge fund registration on the uranium market was active , as prices increased for the radioactive element into the flight over went and to the end of 2006 by more than five times . In 2007 it doubled the price again and in June of this year a record high reached of 136 dollars a pound .
The price rise had accelerated at the time, after governments put around the world to nuclear energy in the hope of reducing their dependence on fossil fuels and reduce emissions. In May of this year, said the uranium sector of the mining group Rio Tinto with the increasing use of nuclear power in India and China will see to it that the demand for fuel will remain strong.
According to UXC CEO Jeff Combs , the main difference to the situation in 2004 is that today more uranium is on the market. In Kazakhstan , where the world’s most of uranium promoted to the ejection 2003-2009 more has than quadrupled , as demonstrated by figures from the World Nuclear Association. They also show that the flow in the second- largest producer, Canada has hardly changed since 2003 . The Kazakh government mining company Kazatomprom plans to expand 2010 production by 29 percent to 18 000 tonnes, by 2016 it will even increase to 25 000 tonnes.