Uranium is the most important fuel source for nuclear plants. The process of controlled nuclear fission yields significant amounts of energy and powers the nuclear reactors. This source of energy, does not release CO2 directly (it does so indirectly) so it will be in more demand and fossil fuels are slowly phased out.

The uranium market has been illiquid for a long time. This has led to depressed values of uranium and lack of incentives for constructing new plants. The reaction to the Fukushima reactor disaster did not help either.

Recently, there has been a relief for the liquidity problem. The new Sprott Physical Uranium Trust Fund (SRUUF) has alleviated the problem of liquidity. In the past month the uranium value has increased by 30% to about 40 US$ per pound. If the uranium value increases further, there will be an incentive for the construction of new reactors.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.