Purchasing gold from a wholesaler and paying its value in installments
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Fatwa No. ( 2298 )
Q: I am one of those who work in the trade of buying and selling
worked gold, which we purchase from importing wholesalers, paying them the value in installments. Is this method, which I and all those working in this profession use, lawful or forbidden? Please clarify the permissibility or prohibition.
A: If the situation is as described regarding the buying and selling of worked gold, then dealing in it by this method is forbidden, if the price paid for the worked gold purchased in installments is in the two currencies, gold or silver, or in paper money that serves as their equivalent; because of the riba al-nasi'ah (usury of deferment) involved in that. Furthermore, riba al-fadl (usury of excess) and riba al-nasi'ah may both be present in this transaction if the item purchased and the item paid as its price are the same, for example, if both are gold, but differ in weight, and the payment is made in installments.
Q: I am one of those who work in the trade of buying and selling
worked gold, which we purchase from importing wholesalers, paying them the value in installments. Is this method, which I and all those working in this profession use, lawful or forbidden? Please clarify the permissibility or prohibition.
A: If the situation is as described regarding the buying and selling of worked gold, then dealing in it by this method is forbidden, if the price paid for the worked gold purchased in installments is in the two currencies, gold or silver, or in paper money that serves as their equivalent; because of the riba al-nasi'ah (usury of deferment) involved in that. Furthermore, riba al-fadl (usury of excess) and riba al-nasi'ah may both be present in this transaction if the item purchased and the item paid as its price are the same, for example, if both are gold, but differ in weight, and the payment is made in installments.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.