The Ruling on Buying Gold on Credit
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What is the ruling on buying gold on credit when both parties agree? And what is the ruling on the exchange in gold?
Buying gold on credit is forbidden; because it is obligatory that the purchase of gold be hand-to-hand, unless one buys gold with something in which there is no riba (usury or interest); for example, if one buys gold with a car, or with food, or with clothing, or with land he has, the important thing is that if he buys gold with something in which there is no riba, there is no harm in them parting before the exchange of possession. However, if he buys it with dirhams, it is not permissible for them to part until both parties have taken possession of the goods, because the Prophet (peace and blessings be upon him) said when he mentioned the categories of wealth in which there is riba: “If these categories differ, sell as you wish, provided it is hand-to-hand” .
Even if there is an agreement between the two parties and a stipulation for the same amount, it is not permissible; because this is riba, unless the full amount is delivered.
As for exchange with gold, two conditions are necessary: The first condition: that they be equal in weight, their weights being the same.
The second condition: Taking possession before parting.
And glory be to You, O Allah, our Lord, and praise be to You. I testify that there is no deity but You. I seek Your forgiveness and I repent to You.
Buying gold on credit is forbidden; because it is obligatory that the purchase of gold be hand-to-hand, unless one buys gold with something in which there is no riba (usury or interest); for example, if one buys gold with a car, or with food, or with clothing, or with land he has, the important thing is that if he buys gold with something in which there is no riba, there is no harm in them parting before the exchange of possession. However, if he buys it with dirhams, it is not permissible for them to part until both parties have taken possession of the goods, because the Prophet (peace and blessings be upon him) said when he mentioned the categories of wealth in which there is riba: “If these categories differ, sell as you wish, provided it is hand-to-hand” .
Even if there is an agreement between the two parties and a stipulation for the same amount, it is not permissible; because this is riba, unless the full amount is delivered.
As for exchange with gold, two conditions are necessary: The first condition: that they be equal in weight, their weights being the same.
The second condition: Taking possession before parting.
And glory be to You, O Allah, our Lord, and praise be to You. I testify that there is no deity but You. I seek Your forgiveness and I repent to You.