Scroll Top

search-icon
    drop-arrow

    Hoarding

    What is hoarding?

    Hoarding is a speculator buying large amounts of a product with the intention of benefiting from future price rises. The term hoarding is applied most often to the purchase of commodities, particularly gold. Occasionally, however, the hoarding is used in many economic ways. Political leaders might argue, for example, that speculators stockpile dollars during a currency crisis. Hoarding is sometimes blamed for shortages that are actually caused by price controls, fixed exchange rates, and other government policies.

    Criticisms of hoarding

    Hoarding is widely criticized for creating real-economy shortages of goods. A process of speculation, self-fulfilling prophecies, and inflation can be generated through hoarding. If several wealthy people start hoarding wheat, then the price will start to rise. Middle-class merchants will notice, and then they could hold back supplies of wheat in anticipation of future price rises.

    That is sufficient to raise the prices again. Panicked buying can in some places create real shortages of wheat. In some countries, the poorest might even be at risk of hunger if the cycle continues beyond that point. Hoarding is sometimes blamed for shortcomings caused by price checks, fixed exchange rates, and other government policies.

    Hoarding vs investing

    Hoarding is often considered detrimental as it prohibits the use of goods in the rest of the economy. Investing will help companies manufacture more materials, as well as other things. Investing in stocks has, in the long run, outperformed hoarding commodities.

    On the other hand, there have been years and decades in which commodities have greater returns than stocks.

    Index

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use

    ISO

    ISO 27001

    Data Center

    SSL

    SSL Certified Site

    128-bit encryption