The ‘Other Yellow Metal’: Why Speculators Are Loading on Uranium

Spot uranium prices have been holding near $90 a pound, yet uranium mining shares have been sinking. Sprott Physical Uranium Trust, a proxy for spot price, is nearly flat for the year, yet Sprott Uranium Miners ETF (NYSE:URNM) has declined more than 23%.

Physical Uranium Vs. Uranium Miners Year-To-Date; Source: TradingViewAI’s seemingly insatiable appetite for electricity has brought nuclear energy back to the top of the clean-energy list.

com Inc. (NASDAQ:AMZN), Meta Platforms Inc.

(NASDAQ:META), and Microsoft Corp. Contracts Delay the PayoffAccording to Kalkin, Cameco Corp.

The disconnect from spot prices reflects the industry reality. Supply constraints nevertheless persist.

Execution and financing risks remain significant. “Right now, the most compelling speculation I see in the whole commodity sector is the other yellow metal,” he said.

”His argument centers on spot uranium trading in the low $90s while long-term contracts command prices in the high $90s. He argued that nine months of disappointing price action matters little against nuclear projects’ multidecade horizons.

He also cited an Alphabet Inc.

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