Uranium prices are soaring to their highest level in 15 years as gold continues to break US$2,000.
Uranium prices have been on a remarkable rally this year, and prices recently surged to US$80, breaking the 15-year high of US$70.95. This rally was a result of strong demand from utilities, which have been looking to restock their depleted uranium inventories.
The demand for uranium has been driven primarily by China and India. China has been rapidly adding nuclear reactors to its energy mix, and Indian is also ramping up its nuclear capacity. Other countries, such as South Korea, the United Arab Emirates, and Saudi Arabia, are also showing strong interest in nuclear energy.
Meanwhile, gold prices have been on an even more impressive rally. Gold recently broke the US$2,000 mark, meaning it has more than doubled in value since the start of the year. This is in part due to fears of inflation, as investors have been piling into safe-haven assets like gold.
Gold’s rally has been a pleasant surprise for investors. Having broken US$2,000, some analysts predict it could soar higher.
The fallout from the current economic upheaval and the unprecedented monetary stimulus provided by central banks have provided fuel for gold’s rally. The potential for higher inflation and the risk of currency debasement have caused investors to flock to the precious metal.
Uranium and gold are both commodities that have seen significant price increases in recent times, and their rallies have been driven by fundamentally different factors. Gold is driven by global macroeconomic trends and fears of a weakening dollar. Uranium, on the other hand, is driven by actual demand from nuclear power producers.
It remains to be seen just how much further these two commodities will rally, but it is clear that both are in unprecedented bull markets. It is important to take a long-term view when investing in commodities, and this latest surge in uranium prices could present an excellent opportunity for long-term investors.