Uranium prices have hit an eight-year high. The nuclear fuel was trading above $44 a pound this week for the first time since May 2013. The launch of a new investment trust by Canadian asset manager Sprott has spurred renewed interest in the commodity.
Shares in uranium-linked stocks, including UK-listed Yellow Cake and Aura Energy, have surged, says Will Horner in The Wall Street Journal. Investors are piling in. On WallStreetBets, the Reddit internet forum known for catalysing the surge in GameStop shares earlier this year, Canadian uranium business Cameco is “the third-most-discussed company”.
The buying craze has become detached from fundamentals, says Jinjoo Lee in the same paper. Don’t expect to jump in and make a quick buck. Still, on a longer-term view there are reasons to be bullish. Uranium has been in the doldrums for much of the past decade. The 2011 Fukushima disaster cast a cloud over the market, says Myra Saefong in Barron’s.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Now the push to cut carbon emissions is brightening the outlook. China is betting big on the technology: “Over 60% of the new plants commissioned over the past decade” worldwide have been in the country. New reactors will continue to come online over the next few years, driving a steady increase in uranium demand. In 2019 The World Nuclear Association forecast “a 26% increase in uranium demand from 2020 to 2030”.
-
British Airways revamps Avios scheme bringing down flight prices to £1With the new Avios part-payments scheme you can now bag a British Airways flight for as little as £1
-
RBS to close a fifth of branchesRoyal Bank of Scotland plans to shut 18 branches across Scotland, resulting in the loss of 105 jobs. We have the full list of closures.
-
The industry at the heart of global technologyThe semiconductor industry powers key trends such as artificial intelligence, says Rupert Hargreaves
-
Three emerging Asian markets to invest inProfessional investor Chetan Sehgal of Templeton Emerging Markets Investment Trust tells us where he’d put his money
-
What to consider before investing in small-cap indexesSmall-cap index trackers show why your choice of benchmark can make a large difference to long-term returns
-
Why space investments are the way to go for investorsSpace investments will change our world beyond recognition, UK investors should take note
-
Time to tap into Africa’s mobile money boomFavourable demographics have put Africa on the path to growth when it comes to mobile money and digital banking
-
M&S is back in fashion: but how long can this success last?M&S has exceeded expectations in the past few years, but can it keep up the momentum?
-
The end of China’s boomLike the US, China too got fat on fake money. Now, China's doom is not far away.
-
Magic mushrooms — an investment boom or doom?Investing in these promising medical developments might see you embark on the trip of a lifetime.
