LONDON, Dec 3 (Reuters) - A blockchain platform and a
uranium trading company launched a marketplace on Tuesday to
allow small investors to buy physical uranium, hoping to boost
spot liquidity in the niche commodity.
Uranium has seen a surge in interest from investors and a
spike in prices in recent years as miners trimmed output and
utilities sought new supplies of mineral that fuels nuclear
power.
A surge in electricity demand for artificial intelligence
(AI) data centres is also spurring new interest in nuclear
plants.
Previously, retail investors could get exposure to the metal
by buying shares in mining companies or funds that hold
inventories of uranium.
Now they will be able to buy small amounts of physical
uranium that will be tokenised on a blockchain and stored in a
depository, with the tokens representing a share of the
underlying asset.
"This is the democratisation of uranium so everyone can buy
it," said Nick Clarke, founder of private trading company Curzon
Uranium.
Unlike gold or platinum, which is sold in small bars to
investors, the minimum lot for buying uranium oxide or
yellowcake is 50,000 pounds, which would cost over $4 million.
The new trading website (www.uranium.io) uses technology
from open-source blockchain platform Tezos, with supplies
sourced by Curzon.
The physical uranium will be stored in facilities owned by
Canadian producer Cameco ( CCJ ).
Small investors can get exposure to physical uranium through
funds such as Sprott or Yellowcake, but those
shares trade on the stock market and can diverge from the
uranium price.
The metal has captured investors' attention after spot
prices doubled over 10 months to a peak of $106 a pound
in January as top producers Kazatomprom and Cameco ( CCJ )
cut production guidance. Prices have eased since then
to $77.
Nuclear energy has seen more interest to help countries cut
their carbon emissions, while several deals have been sealed
this year to source power from nuclear plants for AI data
centres, including by Google, Amazon ( AMZN ) and Microsoft ( MSFT ).