Uranium prices hit 5-year high in September
Uranium prices have run wild in the last month, with the commodity trading 36.3% higher in that period, last hovering around the $44.90 mark. That marks a five year high for the often overlooked commodity, which traded below the $20 mark in 2016.
This has corresponded to significant buying activity in global and in particular, ASX-listed uranium stocks, with the likes of Paladin Energy gaining 112% in the last month alone.
What’s the catalyst behind this latest surge? According to IG’s Senior Market Analyst, Joshua Mahony:‘This largely illiquid market has been influenced heavily by the Sprott Physical Uranium Trust, which is providing major demand into a market that takes little to move price. The sheer size of Sprott’s other precious metal trusts highlights the potential impact it could have upon uranium prices.’Looking ahead, Mr Mahony pointed out that that:‘In total the Sprott trusts total […]
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