Commodities

Storage Cost

Definition

What is Storage Cost?

The cost of holding a physical commodity, including warehousing, insurance, and financing.

Example in practice

High storage costs can push futures prices above spot prices.

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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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