What is the ruling on buying gold on credit?
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The Shaykh : Yes, please go ahead.
The questioner : What is the ruling on buying gold on credit, O Shaykh?
The Shaykh : 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), such as buying gold with a car, for example, or with food, or with clothing, or with an item he has. The important point is that if one buys gold with something in which there is no riba, there is no harm in them separating before the exchange of possession. However, if he buys it with dirhams, it is not permissible to separate until both parties have exchanged possession, based on the saying of the Prophet (peace and blessings be upon him) when he mentioned the categories of wealth in which there is riba:Sahih Muslim 1587c.
The questioner : It was not a cash exchange at the time of purchase!
The Shaykh : It is never permissible.
The questioner : Incomplete.
The Shaykh : This is riba; it is not permissible unless the full amount is delivered.
The questioner : Exchanging gold?
The Shaykh : What?
The questioner : Exchanging gold?
The Shaykh : Likewise, exchanging gold requires two conditions: the first condition is that they be equal in weight, and the second is possession before separation.
And with this, this session ends, for the adhan (call to prayer) has been given for the Zuhr (midday prayer). So, Glory is Yours, O Allah, and praise is Yours; I bear witness that there is no god but You. I seek Your forgiveness and I repent to You.
The questioner : What is the ruling on buying gold on credit, O Shaykh?
The Shaykh : 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), such as buying gold with a car, for example, or with food, or with clothing, or with an item he has. The important point is that if one buys gold with something in which there is no riba, there is no harm in them separating before the exchange of possession. However, if he buys it with dirhams, it is not permissible to separate until both parties have exchanged possession, based on the saying of the Prophet (peace and blessings be upon him) when he mentioned the categories of wealth in which there is riba:
If these classes differ, then sell as you wish if payment is made hand to hand.
إذا اختلفت هذه الأصناف فبيعوا كيف شئتم إذا كان يدًا بيدThe questioner : It was not a cash exchange at the time of purchase!
The Shaykh : It is never permissible.
The questioner : Incomplete.
The Shaykh : This is riba; it is not permissible unless the full amount is delivered.
The questioner : Exchanging gold?
The Shaykh : What?
The questioner : Exchanging gold?
The Shaykh : Likewise, exchanging gold requires two conditions: the first condition is that they be equal in weight, and the second is possession before separation.
And with this, this session ends, for the adhan (call to prayer) has been given for the Zuhr (midday prayer). So, Glory is Yours, O Allah, and praise is Yours; I bear witness that there is no god but You. I seek Your forgiveness and I repent to You.