The atom may be the future — again

…Since bottoming out at just over $7 a pound in December, 2001, uranium has redeemed itself and them by rocketing skyward, recently hitting $37.50 on the spot market.

The rise has been fuelled by a variety of developments, including a growing interest in atomic power in electricity-starved China and India, both of which are planning to double their reactor fleets over the next 15 years, and by a renewed interest in the West, where, in the age of global warming, there is a growing push to reduce fossil fuel emissions. In all, the International Atomic Energy Agency is now forecasting 60 additional plants will be added by 2020 to the approximately 440 currently producing power in 31 countries around the world.

All of this, proponents such as Mr. Grandey say, adds up to a “nuclear renaissance.”

The icing on the yellowcake has been the entry of hedge funds and other speculators into the spot market, buying up millions of pounds of uranium, betting the value will continue to rise.

Globe and Mail