Invisible Supply

DEFINITION of 'Invisible Supply'

Physical stocks of a commodity that are available for delivery upon futures contracts, but whose quantities cannot be accurately identified.

BREAKING DOWN 'Invisible Supply'

The invisible supply of commodities underlying futures contracts can be found in the hands of different manufacturers, producers, and wholesalers. Because this lump of goods is located outside of conventional commercial channels, accurate accounting for the quantities available is difficult.

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  3. How are commodity spot prices different than futures prices?

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  4. How can a futures trader exit a position prior to expiration?

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  5. How is the invisible hand affected in a communist or socialist economy?

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