[2] In terms of Keynesian theory, dishoarding may be described as a reduction in liquidity preference to satisfy speculative motive of demand for money.
A rise in dishoarding means that the community wants to hold a smaller amount of money in idle balances, thus increasing purchases of products (without changing its expenditure of current income).
An increase in dishoarding while there is no change in the demand for loanable funds, will cause the rate of interest to fall.
Due to which there is an increase in demand for securities, causing their prices to rise and the rate of interest to fall.
[4] Customarily, people may also dishoard money from the past hoardings due to a higher rate of interest.
The opposite effect takes place when interest rates are increased; as there is more incentive for consumers to hoard their money due to the financial gain, which leads to less spending.
The selling back of physical gold due to economic distress, profit, lack of performance or even political reasons.
In the early 1930s dishoarding in India was due to the gold price rising to $35 per ounce as well as economic distress.
In 1994, vast hoarding also took place in Turkey due to the weak local currency, while more significant dishoarding took place in 1997 – 1998 during the Asian currency crisis when South Korea, Indonesia and Thailand collectively dishoarded hundreds of tonnes of gold.
The change in direction of a typical trend concerning imports can have an ample effect on a market within a short period.
The Net dishoarding of physical metal during the year 2000 in Europe is estimated to have added 105 to 145 tonnes (3.4 to 4.7 million oz) to the world supply by GFMS.