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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RELATED FAQS
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  2. How does the invisible hand affect prices in the Microeconomic Pricing Model?

    Find out why the microeconomic pricing model cannot accurately describe economic phenomena, and how it misses the real causes ... Read Answer >>
  3. Why do futures' prices converge upon spot prices during the delivery month?

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

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  5. How do futures contracts roll over?

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