Hedge funds stockpile uranium as price of nuclear fuel surges

Hedge funds are stockpiling barrels of raw uranium as the nuclear fuel’s price surges to 16-year highs.

As many as 50 funds are believed to have bought and stored uranium concentrate, known as “yellowcake”, at a facility run by US processing firm ConverDyn alone, as speculators bet that prices are set to spike.

One prominent fund said to be amassing yellowcake is Anchorage Capital Group, the New York firm that started piling into the metal after selling MGM Studios, which owns the film rights to the James Bond franchise, to Amazon.

Other players amassing even larger stockpiles including uranium investment trusts which have built portfolios worth billions of dollars at today’s prices, such as London-listed Yellow Cake Plc and the Toronto-listed Sprott Physical Uranium Trust.Nikko Collida, vice president for business development at ConverDyn, said: “What you’re seeing with these investor types is that they’re just buying and holding.“We’ve had some accounts that […]

Click here to view original web page at www.telegraph.co.uk

About the author: StockMan

Please remember:

The information provided here is for general knowledge and educational purposes only.
It is not intended to be a substitute for professional financial advice.
Every individual's financial situation is unique, and what works for one person may not work for another.
Before making any investment or financial decisions, you should always consult with a qualified financial advisor who understands your specific circumstances and goals.

Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, should never be acted upon. Please be aware that any information posted on this site should not be considered to be financial advice and i am not a financial advisor.