Hoarding

Question:

If a person purchases a land which has gold underneath it and only allows mining companies to mine the land when gold prices are high, will this be considered ihtikar (hoarding)? Answer: ِﺑ ْﺴ ِﻢ ا ِﷲ اﻟ ﱠﺮ ْﺣﻤ ِﻦ اﻟ ﱠﺮ ِﺣْﯿﻢ In the name of Allah, the Most Gracious, the Most Merciful Ihtikar refers to when a person purchases a specific food (e.g. wheat) in a city and hoards it (i.e. he does not sell it to anyone), despite the people of the city being in need of it, until the value of that food rises, then he sells it for a higher price. This type of hoarding in Islam is prohibited due to the right of the general public being attached to that food and the refusal of selling it entailing neglection of fulfilling their right and making matters difficult for them. [1] In regards to refusal of allowing one’s land to be mined until the price of gold increases, this will not come under the category of ihtikar because ihtikar refers to the hoarding of the food of humans and animals. Thus, because gold is not a food item, it will be permissible to avoid selling it or allowing others to mine it. [2] In addition, the act of not selling one’s gold until its price rises is considered to be an investment which is permissible in Islam. [3]

Only Allah knows best

Written by Maulana Mohammad Ahsan Osmani Checked and approved by Mufti Mohammed Tosir Miah Darul Ifta Birmingham [1] Al-Sharhul Thameeri: v. 4, p. 350 (Khatme Nubuwwat Academy); Al-Hidayah: v. 7, p. 229 (Bushra); Qamoosul Fiqh: v. 2, p. 39-40 (Zamzam) [2] Raddul Muhtar: v. 9, p. 571 (Maktaba Imdadia) [3] Al-Iqtisadul Islami (Al-Nazria wal Mumarasa): p. 13