Selling Used Gold for New Gold
Machine translationRead the Arabic original
Fatwa No. ( 20468 )
Q: I had a situation when buying gold, which was at the sale of gold
used in the shop, its value was determined, and when buying other gold, I requested to deduct the price of the used gold from the value and then pay the remaining amount. During the exchange, a brother who was nearby told me: "This involves riba (usury or interest); take the amount in full and return it to him." Therefore, from this situation, I see that there are forms of riba (usury or interest) that are hidden from me and others. I hope your Eminence will clarify this, as the form of riba (usury or interest) known to many is only taking a loan and returning it with a higher value (loan + percentage)
A: You sell the old gold that you want to replace and receive its price in the meeting, then you buy the gold you want from the shop owner or someone else, with the exchange taking place in the meeting, such that you do not separate with anything between you. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his companions.
Q: I had a situation when buying gold, which was at the sale of gold
used in the shop, its value was determined, and when buying other gold, I requested to deduct the price of the used gold from the value and then pay the remaining amount. During the exchange, a brother who was nearby told me: "This involves riba (usury or interest); take the amount in full and return it to him." Therefore, from this situation, I see that there are forms of riba (usury or interest) that are hidden from me and others. I hope your Eminence will clarify this, as the form of riba (usury or interest) known to many is only taking a loan and returning it with a higher value (loan + percentage)
A: You sell the old gold that you want to replace and receive its price in the meeting, then you buy the gold you want from the shop owner or someone else, with the exchange taking place in the meeting, such that you do not separate with anything between you. And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.