Supply

The supply of an asset or security can be influenced by a variety of factors:

  • Production

  • Distribution

  • Storage

  • Market demand.

In general, when the supply of an asset or security is higher than the demand for it, the price tends to decrease, and when the demand for it is higher than the supply, the price tends to increase.

Supply can also be affected by factors such as changes in government policies, economic conditions, and geopolitical events.

For example, if a country imposes a ban on the export of a particular commodity, the supply of that commodity in the global market may decrease, leading to a price increase.