Mere ownership on paper is not enough. Before resale, the fund must obtain physical or constructive possession of the commodity.
Constructive possession means that control and relevant commodity risk have actually passed to the fund, even if the goods are not physically moved into its own warehouse.
Opening interactive controls...
Commodity Funds: Real Trade, Not Paper Commodity Exposure
Mere ownership on paper is not enough. Before resale, the fund must obtain physical or constructive possession of the commodity.
Constructive possession means that control and relevant commodity risk have actually passed to the fund, even if the goods are not physically moved into its own warehouse.