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. […]
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