A new uranium fund that’s snapping up supplies signals the start of a lasting bull run for the commodity used to power nuclear plants.
That’s the view of Nick Piquard, a portfolio manager at Horizons ETFs, who expects prices to soar above $60 a pound in the coming months. That would be about 40% higher from where futures are currently trading in New York.
The Sprott Physical Uranium Trust started buying the commodity on the spot market in mid-August and has amassed over 24 million pounds of uranium, equivalent to about 14% of global reactor consumption. That’s “accelerated the timetable” of a potential bull market by a year or two by locking up a large chunk of supply just as demand prospects are improving, Piquard said in an interview.