New Exotic Focus For Hedge Funds: Uranium Market
Source: Wall Street Journal Online (3/5/07)
In a new type of nuclear-arms race, hedge funds and other institutional investors in search of higher returns are competing with energy companies to amass scarce fuel-grade uranium, hoping to profit from revived interest in nuclear power.
The intense quest for uranium by speculators has sparked a debate over private investors driving up the price and increasing the scarcity of the world's most sensitive natural resource.
Since investors first delved into the market two years ago, the price of processed uranium yellowcake powder -- the most commonly traded form of processed uranium -- has skyrocketed more than fourfold…