Stock-to-flow ratio

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By aaron

In commodities trading, the stock-to-flow ratio is the amount of the commodity in circulation divided by the amount that is produced annually.

It is used to measure the scarcity of a commodity. As stock-to-flow increases, it means the commodity is becoming more scarce.

Stock-to-flow is also used and watched by cryptocurrency investors.

#investing #commodities

https://www.investopedia.com/tech/cryptocurrency-this-week/

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