Investor enthusiasm for uranium stocks has increased their value by about one-third in the past few weeks.
Recognizing that wind, solar and other fossil-fuel alternatives won’t prove sufficient to meet their decarbonization goals, many countries have re-embraced nuclear as a source of clean energy after decades of shunning it. And uranium stocks are favoured by ESG funds as clean-energy investments. Those institutional investors have the heft to drive stock prices higher.
At least for now, that salient fact is lost on uranium-stock enthusiasts, so it merits some elaboration.for some 90 years, according to the World Nuclear Association , the organization of the global nuclear industry. That was the end point of a previous, short-lived nuclear renaissance that began in 2003. The uranium price increased 13-fold in that period before collapsing to one of its lowest inflation-adjusted prices on record.