(Bloomberg) — The Canadian firm behind the world’s only physical uranium fund said hedge funds and family offices are driving up demand for the radioactive metal used to fuel nuclear reactors.
The Sprott Physical Uranium Trust has itself been on a buying spree, bolstering its stockpile by 45% in four weeks after snapping up 8.1 million pounds of the commodity as prices surged.
Uranium has soared 40% this month, putting pressure on utility owners and other users when supplies are dwindling and demand is poised to take off with more reactors being built around the world.
“I don’t think we’re crowding them out,” said John Ciampaglia, chief executive officer of Sprott Asset Management, which oversees the trust. “You’ve got end users that are trying to buy materials, you’ve got speculators and financial intermediaries in the market as well.”
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