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Hoarding


What does Hoarding mean?

In economics, hoarding is the practice of obtaining and holding scarce resources, with the intention to sell to customers on a high profit in future. Hoarding creates a situation of false scarcity. It is an unethical practice.

 

Futures Knowledge Explains Hoarding

Hoarding generally takes place during abnormal situations such as war and natural calamities. Traders start purchasing a commodity in large quantity and take them off the market. Hoarders hide them. It creates an inefficient distribution of the commodity, making the scarcity more acute. This is considered illegal and Governments have framed acts to take action against hoarders. 



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