What is the ruling on buying gold on installment?
Machine translationRead the Arabic original
The questioner : Regarding, O esteemed Shaykh Muhammad, buying gold on installment?
The Shaykh : Yes. ... The question.
The questioner : Yes?
The Shaykh : Buying gold on installment, if it is bought with anything other than paper currency, gold, or silver, there is no harm in it, such as buying it with food like dates or wheat, or buying it with cars and the like. There is no harm in this because there is no riba (usury or interest) between gold and silver and foodstuffs, and no riba (usury or interest) between gold and silver and manufactured goods.
However, if he buys it, meaning if he buys gold on installment with paper currency, gold, or silver, that is forbidden (haram). Because selling gold for gold requires two conditions. The first condition is equality in weight.
The second condition is the exchange of possession in the meeting of the contract. And if gold is sold for silver or paper currency, one condition is required, which is the exchange of possession in the meeting of the contract before parting, due to the saying of the Prophet (peace and blessings be upon him):Sahih Muslim 1587c and his saying (peace and blessings be upon him): Mishkat al-Masabih 2808 . Yes.
The questioner : May Allah reward you. This listener, Muhammad, A, A, says, O esteemed Shaykh.
The Shaykh : Yes. ... The question.
The questioner : Yes?
The Shaykh : Buying gold on installment, if it is bought with anything other than paper currency, gold, or silver, there is no harm in it, such as buying it with food like dates or wheat, or buying it with cars and the like. There is no harm in this because there is no riba (usury or interest) between gold and silver and foodstuffs, and no riba (usury or interest) between gold and silver and manufactured goods.
However, if he buys it, meaning if he buys gold on installment with paper currency, gold, or silver, that is forbidden (haram). Because selling gold for gold requires two conditions. The first condition is equality in weight.
The second condition is the exchange of possession in the meeting of the contract. And if gold is sold for silver or paper currency, one condition is required, which is the exchange of possession in the meeting of the contract before parting, due to the saying of the Prophet (peace and blessings be upon him):
Ubida b. al-Simit (Allah be pleased with him) reported Allah's Messenger (ﷺ) as saying: Gold is to be paid for by gold, silver by silver, wheat by wheat, barley by barley, dates by dates, and salt by salt, like for like and equal for equal, payment being made hand to hand. If these classes differ, then sell as you wish if payment is made hand to hand.
الذهب بالذهب مثلاً بمثل سواءً بسواء يداً بيدGold is to be paid for by gold, silver by silver, wheat by wheat, barley by barley, dates by dates, and salt by salt, like for like and equal for equal, payment being made on the spot. If these classes differ, sell as you wish if payment is made on the spot.
الذهب بالذهب، والفضة بالفضة، والبر بالبر، والتمر بالتمر، والشعير بالشعير، والملح بالملح، مثلاً بمثل، سواءً بسواء، فإذا اختلفت هذه الأصناف فبيعوا كيف شئتم إذا كان يداً بيدThe questioner : May Allah reward you. This listener, Muhammad, A, A, says, O esteemed Shaykh.