SRUUF: The Explosive Uranium Squeeze

Summary

Uranium market has a major supply-demand imbalance of approximately 50 million pounds.

Sprott Physical Uranium Trust Fund is accumulating a major percentage of annual supply as a way to boost uranium prices.

The supply shortage could see uranium prices rise from $40/lb to over $60/lb with limited downside risks. Antoine2K/iStock via Getty Images Over the past two weeks the spot price of uranium has skyrocketed over 25% and hit a six-year high. The reason for the surge is that a new trading vehicle, the Sprott Physical Uranium Trust Fund ( OTCPK:SRUUF ), has been accumulating pounds of uranium at a torrid pace. This article will explain why this new trading vehicle should ignite a long-awaited multi-year bull market in the price of uranium. History of Uranium Uranium is mainly used to fuel nuclear reactors. This input cost is roughly 4% of all operating costs for a nuclear reactor. […]

Click here to view original web page at seekingalpha.com

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.