A surge in the price of raw uranium to 16-year highs has prompted tens of hedge fund firms to begin buying and stockpiling barrels of the raw nuclear power fuel, according to a report by the Daily Telegraph.

The report cites unnamed sources as revealing that as many as 50 funds are believed to have bought and stored uranium concentrate, known as “yellowcake”, at a facility run by US processing firm ConverDyn alone, as speculation increases that prices are set to spike.

New York-based Anchorage Capital Group is one prominent fund firm that is reportedly upping its uranium holdings after selling MGM Studios to Amazon.

The increase in uranium interest comes after the spot price of the metal surged from about $49 per pound at the start of 2023 to $86 towards the end of the year. At the start of 2020, it stood at $24 per pound.

According to industry experts, the increases are being driven by a huge global supply deficit, with the amount of uranium required by existing and under-construction nuclear reactors dwarfed by the amount being produced.