Is trading in gold permissible in Islam?
Machine translationRead the Arabic original
Eid Abbasi : Is buying and selling gold—that is, trading in it—prohibited in Islam? Or is it permissible, like any other trade in buying and selling?
The Shaykh : The Shaykh: The answer is: It is like any other trade. But is there any trade that is permissible to buy and sell without legal limits, or with legal limits? Of course, the answer is: within the limits of the Shari'ah. Likewise, gold, silver, and all precious or cheap metals are permissible to buy and sell, but within the limits of the rulings of the Shari'ah. Now, there is a problem in reality, and I do not know how it will be resolved, as long as the social situation of Muslims is not an Islamic society, unfortunately. That is because the Shari'ah prohibits selling gold for gold with a difference in amount, and prohibits selling silver for silver with a difference in amount; rather, it must be like for like, weight for weight, hand to hand, in cash.
So today, with what do we buy gold? It should be bought with a metal other than gold, such as silver, or any other metal. But—unfortunately—the silver currency has begun to disappear and leave people's hands, and what takes its place? Paper currency. The difference is simple, meaning between a paper currency and a paper currency; that is, between an opening and a breaking in the letter ra' or on the ra'. The Shari'ah permits you to buy gold with silver, no matter how great the difference, but it is not permissible for you to buy gold in a manufactured form, such as jewelry, with a weight of gold greater than the weight of the jewelry. This is a problem that the masses of Muslims are facing today. The permissible way to make jewelry, of course, is that you ask the goldsmith to make for you a specific type of jewelry, and you agree with him on the weight of the gold, such as this much, and his fee, such as this much. You give him the price of the gold, even if it is gold, because he will craft it by weight. Then you give him his fee or wage in the agreed amount, whether in gold or silver. As for coming to take ready-made jewelry, whose weight, let us suppose, is one hundred grams, which equals, let us suppose, five gold dinars; he will take from you five and a half or six. Five is the price of the gold, the value of the gold in the jewelry, and the rest is his fee. This is not permissible in Islam. Therefore, it came in some hadiths that a man wanted to sell a necklace containing pieces of gold and pieces of beads. He (peace and blessings be upon him) ordered him to separate this from that and sell the gold alone. And all of this is to block the door of riba (usury or interest) among Muslims. But Muslims—very unfortunately—have made open riba permissible through the banks. So how can they be aware of such concealed riba, which only the people of knowledge know? The people of knowledge and specialization in the Shari'ah.
The point is that all trade is permissible, including metals of all kinds, but within the limits of the rulings of the Shari'ah. Among these is that there must be no riba (usury or interest). Riba is a broad door in the Shari'ah, and its rulings are known from the authentic hadiths, and from the explanations of the scholars and jurists of them.
The questioner : ... .
The Shaykh : No, it is not specified.
Eid Abbasi : Here is a new question related to the topic: What are the legal guidelines in the process of trading in gold? As is the case with the rise and fall of the price of gold?
The Shaykh: The professor told you that there must be no riba (usury or interest).
The Shaykh : Yes, indeed. Now, the question is not relevant after the previous explanation.
Yes.
The Shaykh : The Shaykh: The answer is: It is like any other trade. But is there any trade that is permissible to buy and sell without legal limits, or with legal limits? Of course, the answer is: within the limits of the Shari'ah. Likewise, gold, silver, and all precious or cheap metals are permissible to buy and sell, but within the limits of the rulings of the Shari'ah. Now, there is a problem in reality, and I do not know how it will be resolved, as long as the social situation of Muslims is not an Islamic society, unfortunately. That is because the Shari'ah prohibits selling gold for gold with a difference in amount, and prohibits selling silver for silver with a difference in amount; rather, it must be like for like, weight for weight, hand to hand, in cash.
So today, with what do we buy gold? It should be bought with a metal other than gold, such as silver, or any other metal. But—unfortunately—the silver currency has begun to disappear and leave people's hands, and what takes its place? Paper currency. The difference is simple, meaning between a paper currency and a paper currency; that is, between an opening and a breaking in the letter ra' or on the ra'. The Shari'ah permits you to buy gold with silver, no matter how great the difference, but it is not permissible for you to buy gold in a manufactured form, such as jewelry, with a weight of gold greater than the weight of the jewelry. This is a problem that the masses of Muslims are facing today. The permissible way to make jewelry, of course, is that you ask the goldsmith to make for you a specific type of jewelry, and you agree with him on the weight of the gold, such as this much, and his fee, such as this much. You give him the price of the gold, even if it is gold, because he will craft it by weight. Then you give him his fee or wage in the agreed amount, whether in gold or silver. As for coming to take ready-made jewelry, whose weight, let us suppose, is one hundred grams, which equals, let us suppose, five gold dinars; he will take from you five and a half or six. Five is the price of the gold, the value of the gold in the jewelry, and the rest is his fee. This is not permissible in Islam. Therefore, it came in some hadiths that a man wanted to sell a necklace containing pieces of gold and pieces of beads. He (peace and blessings be upon him) ordered him to separate this from that and sell the gold alone. And all of this is to block the door of riba (usury or interest) among Muslims. But Muslims—very unfortunately—have made open riba permissible through the banks. So how can they be aware of such concealed riba, which only the people of knowledge know? The people of knowledge and specialization in the Shari'ah.
The point is that all trade is permissible, including metals of all kinds, but within the limits of the rulings of the Shari'ah. Among these is that there must be no riba (usury or interest). Riba is a broad door in the Shari'ah, and its rulings are known from the authentic hadiths, and from the explanations of the scholars and jurists of them.
The questioner : ... .
The Shaykh : No, it is not specified.
Eid Abbasi : Here is a new question related to the topic: What are the legal guidelines in the process of trading in gold? As is the case with the rise and fall of the price of gold?
The Shaykh: The professor told you that there must be no riba (usury or interest).
The Shaykh : Yes, indeed. Now, the question is not relevant after the previous explanation.
Yes.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.