What is the ruling on selling gold when its price rises?
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The questioner : No problem, my Shaykh, there are three questions. The first question is: What is the ruling on selling gold when its price rises?
The Shaykh : With what?
The questioner : When its price rises
The Shaykh : Yes.
The questioner : And if that is permissible, what is the ruling on buying it for this purpose?
The Shaykh : If the purchase were made with the metal corresponding to gold, which is silver, it would be permissible and there would be no objection to it. But since the purchase is made with paper currency, not with paper currency [sic], the problem arises from here, and a strong doubt enters in. Because, as you know, paper currency has no intrinsic value; its value is nominal. Today it is at one price, and tomorrow at another price, rising and falling, with no stability. So from this perspective, it is not permissible to trade in paper currencies; rather, a person should deal with them only within the limits of pressing need. As for trading in them as people do today, this is not permissible in the Shari'ah, from two aspects. I think this research is not new to you. The first aspect is what I mentioned earlier, that you want to buy gold with gold with a difference in amount, and this is not permissible. The other aspect is that, as you see, it involves gambling and risk.
The questioner : Based on this, my Shaykh, we know your fatwa regarding the issue of trading in paper currency.
The Shaykh : This is what we are talking about.
The questioner : But no problem, my Shaykh, I mean, some of our brothers, I mean, perhaps some have issued a fatwa to the contrary. Therefore, we want some clarification, so that the brother Abu Ahmad can record this answer. We want some clarification regarding this issue. No problem, may Allah reward you.
The Shaykh : There is no room for clarification, because we have spoken about it more than once. This is just a question and its answer.
The questioner : Good, if Allah wills.
The Shaykh : May Allah bless you
The Shaykh : With what?
The questioner : When its price rises
The Shaykh : Yes.
The questioner : And if that is permissible, what is the ruling on buying it for this purpose?
The Shaykh : If the purchase were made with the metal corresponding to gold, which is silver, it would be permissible and there would be no objection to it. But since the purchase is made with paper currency, not with paper currency [sic], the problem arises from here, and a strong doubt enters in. Because, as you know, paper currency has no intrinsic value; its value is nominal. Today it is at one price, and tomorrow at another price, rising and falling, with no stability. So from this perspective, it is not permissible to trade in paper currencies; rather, a person should deal with them only within the limits of pressing need. As for trading in them as people do today, this is not permissible in the Shari'ah, from two aspects. I think this research is not new to you. The first aspect is what I mentioned earlier, that you want to buy gold with gold with a difference in amount, and this is not permissible. The other aspect is that, as you see, it involves gambling and risk.
The questioner : Based on this, my Shaykh, we know your fatwa regarding the issue of trading in paper currency.
The Shaykh : This is what we are talking about.
The questioner : But no problem, my Shaykh, I mean, some of our brothers, I mean, perhaps some have issued a fatwa to the contrary. Therefore, we want some clarification, so that the brother Abu Ahmad can record this answer. We want some clarification regarding this issue. No problem, may Allah reward you.
The Shaykh : There is no room for clarification, because we have spoken about it more than once. This is just a question and its answer.
The questioner : Good, if Allah wills.
The Shaykh : May Allah bless you
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.