What is the ruling on women who go to a gold seller with old gold, have it exchanged for new gold, and pay the difference?

The questioner:
The questioner, Umm Husan from Riyadh, says: Many women, may Allah guide them, go to a gold seller with old gold, and he exchanges it for them with new gold, or rather, he exchanges it for them with new gold and they pay the difference. Is this transaction permissible, or is it riba (usury or interest)? Please give us a ruling, may Allah reward you with good.

The Shaykh:
This transaction is not permissible, and it is a clear case of riba.

The presenter:
There is no power or strength except by Allah.

The Shaykh:
But whoever wants to exchange gold for other gold, the correct way is to sell the gold he wants to get rid of for dirhams, and then buy with those dirhams the gold he wants. This is based on the saying of the Messenger (peace and blessings be upon him) regarding exchanging dates for better dates, where he said to him meaning good dates. This is the method prescribed by the Shari'ah. Yes.