The Comprehensive Guide to

Passive Income Investing


Learn the secrets of how Paul Tracy generates over $XXX,XXX per month in passive income!

How to Become Financially Independent Through Passive Income Investing

What is a Warehouse Receipt?

A warehouse receipt is a piece of paper promising that a specific quantity and quality of a particular asset is in a given location.

How Does a Warehouse Receipt Work?

Let's say John Doe buys a coffee futures contract. On October 31, the contract expires and John is the proud owner of a huge amount of coffee. A giant truck does not pull up to John's house and dump Folgers on the front lawn. Instead, John receives a warehouse receipt detailing where the coffee is and that it is in the quantity specified.

If John wants his coffee or wants to sell his coffee, the warehouse receipt will serve as proof that the coffee in the warehouse is his.

Why Does a Warehouse Receipt Matter?

Trading warehouse receipts is much easier than moving loads of coffee, pork bellies, orange juice or gold from place to place. Additionally, if a company has used warehousing financing, a warehouse receipt is evidence of the warehoused collateral associated with the debt.

Ask an Expert about Warehouse Receipt

All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Warehouse Receipt.

Be the first to ask a question

If you have a question about Warehouse Receipt, then please ask Paul.

Ask a question
Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.