Pic: via Getty Images share
Earlier this month New York fund managers Leigh Goehring and Adam Rozencwajg flagged that, as quickly mobilised spot volumes become scarce, speculators could use the Sprott Physical Uranium Trust (SPUT) to push yellowcake prices sharply higher .
SPUT currently has over 61.7 million pounds of U3O8 under lock and key – and is considered by Goehring and Rozencwajg as a barometer of uranium investor sentiment.
“When investors are bullish on uranium, the Sprott Uranium Trust often trades at a significant premium to the value of its uranium holdings,” they said.“Speculators will eventually realise they can bull the Sprott Physical Uranium Trust, force a premium, have the Trust issue shares, and permanently sequester physical material.“Although this strategy would not work in a well-supplied market, it could create sharp price increases when physical material is scarce as utilities are forced to compete with speculators for volumes.“Uranium is bullish […]
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