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Speculative Buying

When purchasing is done purely from the point of view of taking advantage of a speculated rise in price of the commodity it is called Speculative buying. The intent is not to buy for the internal consumption but to resell the commodity at a later date when the prices have gone up and to make a profit by selling. The items may be those that are needed for internal consumption but the quantity shall be much more than the requirement so as to take advantage of the coming price rise.

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