Uranium is becoming the “new gold”

The surge in demand for uranium has led to its highest prices since the nuclear disaster in Fukushima, Japan in 2011.

Further price increases for uranium can be expected in the coming years due to the uranium supply crisis, especially considering the growing popularity of the “green” energy trend and the reduction of dependence on fossil fuels among many developed countries.

Demand for uranium has increased due to the aspirations of a number of countries, from China to India and Russia, to implement more nuclear programs to balance meeting growing energy needs and reducing carbon dioxide emissions.

The price of uranium has increased almost 40% since the beginning of the year to $66.25 per pound, and, according to forecasts, it may well rise to $80 by the end of the year. This price increase is attributable to the rise in the cost of mining and the desire of nuclear generating companies to create reserves in advance.

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Analysts foresee a year-over-year increase in uranium prices for the next 10-20 years or until the world finds another source of large-scale, uninterrupted energy with low levels of carbon dioxide emissions.

In addition to the rise in prices for uranium itself, stocks of uranium mining companies and the ETFs investing in them are also on the rise.

For example, the assets of Sprott Uranium Miners UCITS have exceeded $100 million.

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