Hoarding an item and selling it at a higher price later on

Answered according to Hanafi Fiqh by TheMufti.com

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

This answer was collected from TheMufti.com, which is a fatwa portal managed by Mufti Ismaeel Bassa from South Africa.