What is the ruling on exchanging used gold for new gold at gold shops with a difference in value?

The questioner: Your Eminence, the Father - may Allah preserve you - says:The questioner: What is the ruling on exchanging used gold for new gold at gold shops with a difference in value...? And if the exchange is made with a person, what is the ruling on the gold that...? And may Allah reward you with good?

The Shaykh: The ruling on this is well known and there is no disagreement among the scholars of the Muslims regarding it; because the Prophet (peace and blessings be upon him) said: ; meaning: eating or... usury. Whether the gold is old or the gold is new, it is gold, and it is not permissible to make a difference in value between them except like for like. This is a problem that goldsmiths fall into when they sell gold for gold with a difference in value. And this is a problem which, in my opinion, cannot be solved except by having silver paper currency; because in this case, if it is sold ounce for another ounce with a difference in value hand to hand, there is no harm in that.
Yes.