l0grisk intelligence · english

// definition

Carrying cost

Cost of holding an asset over time

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Markets & clearing

Short definition

The cost of holding an asset for a given period. For metal inventory, this may include funding, storage and insurance. Calculations depend on quantity, duration, units and contractual terms. The opportunity cost of equity funding differs from interest actually charged; physical withdrawal fees depend on the metal being removed.

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Knowledge map

Intuition

Capital remains committed and storage charges accumulate while an inventory position is held.

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