The Ruling on Exchanging Old Gold for New

Question:
This is also a matter related to buying and selling, or specifically buying and selling gold. The questioner says: I have used, worked gold, and I want to exchange it for new, worked gold. I have heard that this is forbidden, and that one should sell the old gold, take its money, and then buy the new gold. What is the correct ruling, Honorable Shaykh?

Answer:
If the weight of the two pieces of gold being exchanged is equal, there is no harm in that. If the weight is equal and the type is the same, there is no harm in that. However, if the item being exchanged and the item it is exchanged for are of the same type, such as gold for gold or silver for silver, equality in weight is required, based on the saying of the Prophet (peace and blessings be upon him) But if a person needs to exchange old jewelry for new jewelry of the same type, gold for gold, then in this matter he sells the old gold for currency. He sells the gold for currency, whether silver or paper money, and then he buys with that value the gold he wants. A man came to the Prophet (peace and blessings be upon him) with good dates, and the Prophet (peace and blessings be upon him) said: "Is all the date of Khaybar like this?" He said: No. This is the essence of riba (usury or interest). Sell the 'ajm (inferior dates) for dirhams. 'Ajm is the inferior dates. Yes, sell it for dirhams, and then buy with the dirhams the janiyib, which is the good dates. Yes, this is the way to obtain the gold, or the good item. Yes.