Commodities

Convenience Yield

Definition

What is Convenience Yield?

The non-cash benefit of physically holding a commodity rather than only a financial claim.

Example in practice

A refinery values immediate access to crude during a shortage.

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A scarce metal commonly held for industrial use, jewellery, or investment.

A precious metal used as jewellery, an industrial input, a reserve asset, and an investment.

A precious metal with both investment demand and extensive industrial use.

A company that finances producers in exchange for a percentage of revenue or output.

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