Buying gold over the telephone
Machine translationRead the Arabic original
The third question of Fatwa No. ( 3211 )
Q3: Sometimes a shop owner buys gold in bulk by telephone from Makkah or from outside the Kingdom, while he is in Riyadh, from a known goldsmith, and the goods are known to the buyer, such as bracelets or the like. They agree on the price and transfer the amount to him via the bank. Is that permissible, or what should he do?
A3: This contract is not permissible either, because of the delay in taking possession of both the price and the item sold. Both are of gold, or one is of gold and the other of silver, or their equivalent in paper currency. This is called riba al-nasi'ah (usury of deferment), and it is forbidden. The sale should only be renewed when the price is present, at the price they agree upon at the time of the contract, hand to hand.
Q3: Sometimes a shop owner buys gold in bulk by telephone from Makkah or from outside the Kingdom, while he is in Riyadh, from a known goldsmith, and the goods are known to the buyer, such as bracelets or the like. They agree on the price and transfer the amount to him via the bank. Is that permissible, or what should he do?
A3: This contract is not permissible either, because of the delay in taking possession of both the price and the item sold. Both are of gold, or one is of gold and the other of silver, or their equivalent in paper currency. This is called riba al-nasi'ah (usury of deferment), and it is forbidden. The sale should only be renewed when the price is present, at the price they agree upon at the time of the contract, hand to hand.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.