Q. Is it permissible to purchase an item and hoard it with a motive of selling it later on at a higher price to maximize on profit?
A. To purchase an item which is a basic need and hoard it with the intention of reselling it at a higher price is called Idhtikhaar. To do so is a sin. Rasulullah Sallallahu Alahi Wasallam said:
منِ احْتَكَرَ فَهُوَ خَاطِئٌ
He who hoards has sinned (Muslim)
The reason for this prohibition is because by hoarding ones wealth when there is a need for it, is simply causing harm to humanity which is against the temperament of Shariah. This prohibition is only when there is a need for such wealth in the market place. In the absence of such need, this prohibition will not apply. (Shaami)
Allah Ta’ala Knows Best
Mufti Ismaeel Bassa