We request clarification of the meaning of: gold for gold and silver for silver, like for like and hand to hand, with examples?
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The questioner : In the name of Allah, we begin this session with a message from a listener who used the initials E.M. He says: We request clarification of the meaning of with examples. May Allah reward you.
The Shaykh : Praise be to Allah, Lord of the worlds, and I send prayers and peace upon our Prophet Muhammad, the Seal of the Prophets and the Imam of the righteous, and upon his family and his Companions, and those who follow them in excellence until the Day of Judgment. The meaning of the saying of the Prophet (peace and blessings be upon him) is that if a person sells gold for gold, two conditions are necessary. The first condition is that it be like for like, meaning weight for weight.
The second condition is that it be hand to hand, meaning that the exchange of possession must occur before the parties separate. An example of this is a man who sells one mithqal of gold for one mithqal of gold, and they exchange possession before separating from the gathering. This sale is valid because the hadith of the Messenger (peace and blessings be upon him) applies to it; it is like for like and hand to hand.
An example of what is not valid is selling one and a half mithqals of gold for one and a third mithqal of gold. This sale is not valid because it is not like for like; one is one and a half mithqals and the other is one and a third mithqal, so equality is not achieved, and the sale is not valid. This is called riba al-fadl (usury of excess in a like-for-like exchange). Even if he sells one mithqal of gold for one mithqal of gold, but the taking of possession is delayed, such as if he gives him the mithqal of gold but does not take his exchange of gold until after a period, even if it is only an hour, the sale is not valid because it is not hand to hand.
Likewise, we say regarding the saying of the Prophet (peace and blessings be upon him), meaning that if he sells silver for silver, these two conditions are necessary: first, that they be equal in weight, and second, that the taking of possession occur before separation.
An example is selling one mithqal of silver for one mithqal of silver with the exchange of possession in the gathering. The sale here is valid because the hadith applies to it; it is like for like and hand to hand.
An example of what is not valid is selling one and a third mithqal of silver for one and a half mithqal of silver hand to hand. Here, the sale is not valid due to the lack of equality between them. Or, he sells one mithqal of silver for one mithqal of silver with the taking of possession of one of them delayed from the gathering of the contract. Here, the sale is not valid because it is not hand to hand. By this, we know what was mentioned previously: if gold is sold for gold, two things are necessary: equality in weight and the exchange of possession in the gathering of the contract. And if silver is sold for silver, two things are necessary: equality in weight and the exchange of possession in the gathering of the contract. This is the meaning of the hadith, both in its explicit wording and its implied meaning.
The questioner : May Allah bless you.
Gold for gold and silver for silver, like for like and hand to hand
الذهب بالذهب والفضة بالفضة مثلا بمثل يدا بيدThe Shaykh : Praise be to Allah, Lord of the worlds, and I send prayers and peace upon our Prophet Muhammad, the Seal of the Prophets and the Imam of the righteous, and upon his family and his Companions, and those who follow them in excellence until the Day of Judgment. The meaning of the saying of the Prophet (peace and blessings be upon him)
Gold for gold and silver for silver, like for like and hand to hand
الذهب بالذهب والفضة بالفضة مثلا بمثل يدا بيدThe second condition is that it be hand to hand, meaning that the exchange of possession must occur before the parties separate. An example of this is a man who sells one mithqal of gold for one mithqal of gold, and they exchange possession before separating from the gathering. This sale is valid because the hadith of the Messenger (peace and blessings be upon him) applies to it; it is like for like and hand to hand.
An example of what is not valid is selling one and a half mithqals of gold for one and a third mithqal of gold. This sale is not valid because it is not like for like; one is one and a half mithqals and the other is one and a third mithqal, so equality is not achieved, and the sale is not valid. This is called riba al-fadl (usury of excess in a like-for-like exchange). Even if he sells one mithqal of gold for one mithqal of gold, but the taking of possession is delayed, such as if he gives him the mithqal of gold but does not take his exchange of gold until after a period, even if it is only an hour, the sale is not valid because it is not hand to hand.
Likewise, we say regarding the saying of the Prophet (peace and blessings be upon him)
Silver for silver
الفضة بالفضةAn example is selling one mithqal of silver for one mithqal of silver with the exchange of possession in the gathering. The sale here is valid because the hadith applies to it; it is like for like and hand to hand.
An example of what is not valid is selling one and a third mithqal of silver for one and a half mithqal of silver hand to hand. Here, the sale is not valid due to the lack of equality between them. Or, he sells one mithqal of silver for one mithqal of silver with the taking of possession of one of them delayed from the gathering of the contract. Here, the sale is not valid because it is not hand to hand. By this, we know what was mentioned previously: if gold is sold for gold, two things are necessary: equality in weight and the exchange of possession in the gathering of the contract. And if silver is sold for silver, two things are necessary: equality in weight and the exchange of possession in the gathering of the contract. This is the meaning of the hadith, both in its explicit wording and its implied meaning.
The questioner : May Allah bless you.