[Salahadeen]

http://islamtoday.com/show_detail_se...&main_cat_id=5

by Sheikh Husayn al-Jabûrî, professor at Umm al-Qurâ University

The unlawful hoarding of goods occurs when commercial goods are withheld from sale at any time or place in order to cause the price of those goods to rise unnaturally above the normal market price. Islam forbids manipulating prices in this way. This prohibition is more acute when the commodity in question is an essential one, something that people need in order to live or to function normally.

Prices can be artificially inflated to many times their true market value through hoarding and stockpiling. This causes great hardship to people, especially those who cannot afford to pay.

This is why the Prophet (peace be upon him) said: "Only a sinner hoards goods." [Sahîh Muslim (1605)]

He also said: "Whoever interferes with the prices among the Muslims to cause those prices to increase, Allah has the right to seat him in a severe fire on the Day of Judgement." [Musnad AhmadMustadrak al-Hâkim (2/12-13), Mu`jam al-Tabarânî al-Kabîr (20/479-481), and Sunan al-Bayhaqî (6/30) – with a good (hasan) chain of transmission]

He also said: "Whoever hoards a commodity in order to raise prices the Muslims have to pay is a sinner for doing so." [Musnad Ahmad (8617), Mustadrak al-Hâkim (2/12) and Sunan al-Bayhaqî (6/30) – a narration which is strengthened to the grade of good by virtue of supporting narrations]

In one narration of this hadîth, there is the additional phrase: "…and Allah is free of any responsibility towards him."

These texts are clear evidence that Islam forbids cornering the market – buying up the supply of goods in the market to gain control over their supply and force people to pay extravagant prices for them. Hoarding goods is sinful, especially essentials like medicines, staple foods, and those things upon which people depend to earn their livelihoods, is sinful.

Some scholars consider the Prophet's prohibition to be a general one, meaning that stockpiling goods is a sinful practice at with respect to all merchandise, even for things that are inessential.

And Allah knows best.

[Variable]

Originally Posted by Salahadeen

Islamtoday.Com - Stockpiling commodities to corner the market

by Sheikh Husayn al-Jabûrî, professor at Umm al-Qurâ University

The unlawful hoarding of goods occurs when commercial goods are withheld from sale at any time or place in order to cause the price of those goods to rise unnaturally above the normal market price. Islam forbids manipulating prices in this way.

So someone needs to show this to OPEC.

[Salahadeen]

Originally Posted by Variable

So someone needs to show this to OPEC.

lol

That would be a different situation I believe, but not sure.

I won't speak about why I think so, since I'm not sure...

[Biryani]

I don't think it's considered hoarding if it's being done as part of an economic boycott. ie I cut off oil from America for their illegitimate support of isreal.

[Salahadeen]

Originally Posted by Biryani

I don't think it's considered hoarding if it's being done as part of an economic boycott. ie I cut off oil from America for their illegitimate support of isreal.

Word to big bird.

[Variable]

Originally Posted by Salahadeen

lol

That would be a different situation I believe, but not sure.

I won't speak about why I think so, since I'm not sure...

If you look into it, you'll find that OPEC does exactly this:

"...commercial goods are withheld from sale at any time or place in order to cause the price of those goods to rise unnaturally above the normal market price."

It behaves very close to cartel, and not just when in protest to Israel or the US.

[Khairan]

Originally Posted by Biryani

I don't think it's considered hoarding if it's being done as part of an economic boycott. ie I cut off oil from America for their illegitimate support of isreal.

That's not really the case. The Middle Eastern oil nations actually have huge reserves of oil far beyond what they sell on a yearly basis. They adjust the volume of their exports with respect to market prices, and will reduce exports if they fear that the price per barrel will drop beyond certain amounts (how they decide those amounts is really beyond me). It's very similar to how diamond companies inflate the price of diamonds (relatively common stones) by monopolizing their mining and controlling their release.