Hoarding is a form of investment that involves buying and holding large amounts of a particular commodity with the expectation of capital gains down the line. It is often driven by speculators who hope to benefit from future price increases, but it can also be caused by factors such as supply shortages and market speculation. Hoarding has existed for centuries, and it is especially common during times of market uncertainty.

In hoarding, investors buy up commodities in an attempt to capitalize on future market swings. The act of hoarding can lead to speculative bubbles, which are characterized by increasing prices due to increased demand and limited supply. When people make buying decisions based solely on price increases, it creates a 'self-fulfilling prophecy,' where the price of the commodity continues to increase due to the investor’s expectation of future gains. Once the market reaches its peak, prices tend to fall due to the glut of supply and lack of demand. This creates further economic instability.

Various governments have passed laws and regulations in an effort to prevent large-scale hoarding, and to protect the market from unrestrained speculation. The goal of these laws is to provide investors with price stability and to reduce economic crises. However, it is important to note that these laws are not always effective and can lead to shortages of the commodity in question.

In the long run, investing in stocks has been proven to out-perform hoarding commodities. Stocks generally raise in value due to company growth and market trends, whereas commodities are subject to more volatile swings in the short term. It is also important to note that as markets become more uncertain following large-scale events, hoarding can become a more attractive option. This can lead to new opportunities for investors, but it is important to understand the risks involved before investing - especially if you are investing large amounts of capital.