Rollover & basis
How do storage costs, insurance, and financing interest rates compound the structural cost of carry for physical metals?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Storage, insurance, and financing interest compound the cost of carry for physical metals, making farther-dated contracts progressively more expensive in a normal contango market structure.
How it works
Each added month of holding incurs additional vault fees, insurance premiums, and opportunity cost of capital, which the market prices into the forward curve of gold and silver futures.
An example
12-month gold futures trade above spot by carry costs.
Risk & limitations
Carry costs fluctuate with interest rates and storage fees.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.