Commodities
Convenience Yield
Definition
What is Convenience Yield?
The non-cash benefit of physically holding a commodityA standardised physical good such as gold, crude oil, wheat, or cocoa. rather than only a financial claim.
Example in practice
How This Looks in Practice
A refinery values immediate access to crude during a shortage.
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Related Terms
Commodities
Precious Metal
A scarce metal commonly held for industrial use, jewellery, or investment.
CommoditiesGold
A precious metal used as jewellery, an industrial input, a reserve asset, and an investment.
CommoditiesSilver
A precious metal with both investment demand and extensive industrial use.
Alternative InvestmentsRoyalty Company
A company that finances producers in exchange for a percentage of revenue or output.