Thursday, September 23, 2010

Uranium Prices at 10-Month High Attract Hedge Funds, Investors, UxC Says

Uranium is drawing interest from investors including hedge funds after prices for the nuclear fuel climbed to the highest level in more than 10 months, according to Ux Consulting Co.

Uranium-oxide concentrate for immediate delivery remained at $48 a pound for a third week, Roswell, Georgia-based UxC said yesterday in a report. Prices are up 19 percent from this year’s low in March.

Hedge funds also were in the uranium market six years ago, Jeff Combs, UxC’s president, said yesterday by phone. At that time, prices of the radioactive element were starting a surge in which they would jump more than fivefold in the three years through 2006. Uranium almost doubled again in 2007, reaching a record $136 a pound in June of that year.

“Interest from hedge funds and investors has started to re-emerge,” Combs said. “We did see it in 2004. Investors and hedge funds were getting interested, and they were ahead of the curve then. The question now is, is this the next up leg in the market?” (more)

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