Volume V: Economy, Politics, and Environmental Governance

Consumption Distortion in Gold Panic Buying: A Critical Analysis Based on Islamic Economic Principles

  • Musaiyana UIN Sunan Gunung Djati Bandung, Indonesia

Keywords

Gold Panic Buying, Consumption Distortion, Islamic Economics, Behavioral Economics, Wahbah al-Zuhayli, Muhammad Taqi Usmani, Speculation, Maqāṣid Al-Sharīʿah.

Abstract

Gold price volatility often triggers panic buying behavior among consumers and investors, leading to consumption patterns that are driven more by psychological impulses than by rational economic considerations. This phenomenon reflects a form of consumption distortion characterized by fear of missing out (FOMO), herd behavior, and speculative expectations during periods of market uncertainty. While panic buying has been extensively discussed within behavioral economics, its implications from the perspective of Islamic economics remain insufficiently explored. Therefore, this study aims to critically analyze the phenomenon of gold panic buying as a form of consumption distortion through the lens of Islamic economic principles, with particular emphasis on a comparative examination of the contemporary Islamic legal thoughts of Wahbah al-Zuhayli and Muhammad Taqi Usmani. This study employs the theoretical framework of behavioral economics, particularly herd behavior and prospect theory, integrated with the principles of Islamic economics and fiqh al-muʿāmalāt. Using a qualitative normative research method, the study adopts a conceptual and comparative approach by analyzing the relevant works of Wahbah al-Zuhayli and Muhammad Taqi Usmani concerning market ethics, investment behavior, speculation, public welfare (maṣlaḥah), and the prohibition of gharar and maysir. The findings reveal that gold panic buying constitutes a distortion of consumption behavior because purchasing decisions are frequently influenced by collective fear and speculative motives rather than genuine needs or sound investment considerations. Although both scholars recognize the permissibility of gold ownership and investment as a means of wealth preservation, they criticize excessive speculative conduct that undermines market stability and ethical economic behavior. Wahbah al-Zuhayli approaches the issue from the perspective of maqāṣid al- sharīʿah and public welfare, emphasizing the importance of market equilibrium and social benefit. In contrast, Muhammad Taqi Usmani focuses on preventing elements of gharar and maysir, stressing the need for investments to be linked to real economic value rather than speculative expectations. The study concludes that panic buying of gold, when motivated by fear, market euphoria, and speculative behavior, contradicts the fundamental principles of Islamic economics, which advocate moderation, rationality, justice, and socio-economic welfare.

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