ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Hoarding is the purchase and warehousing of large quantities of a commodity by a speculator with the intent of benefiting from future price increases. The term hoarding is most frequently applied to buying commodities, especially gold. However, hoarding is sometimes used in other economic contexts.

Detailed explanation-2: -hoarding noun (KEEPING) the act of collecting large amounts of something and keeping it for yourself, often in a secret place: The food shortages have been exacerbated by hoarding.

Detailed explanation-3: -Hoarding in economics refers to the concept of purchasing and storing a large amount of product belonging to a particular market, creating scarcity of that product, and ultimately driving the price of that product up.

Detailed explanation-4: -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.

Detailed explanation-5: -It is generally assumed that increases in price will decrease demand. Once hoarding has begun an increase in price may be interpreted by consumers as a signal of future shortages and of future higher prices. Thus price increases may increase demand.