He says, “I am one of the traders who deal in gold, buying and selling. Sometimes we sell gold to another trader who does not have the full liquidity to pay the required amount, which forces us to give him a day or two until the amount becomes available to him. I ask you, your Excellencies, to inform us about this transaction in general: is it permissible or not? I also ask you to inform me whether it is permissible or not if this aforementioned transaction only takes place among us traders, where there is mutual trust and a commercial necessity to carry out this transaction. I ask you to inform me, and I offer you my sincere thanks and appreciation.”
Machine translationRead the Arabic original
The questioner : This letter reached us from a listener from al-Qassim, or a trader from al-Qassim, N.S.F. He says, “I am one of the traders who deal in gold, buying and selling. Sometimes we sell gold to another trader who does not have the full liquidity to pay the required amount, which forces us to give him a day or two until the amount becomes available to him. I ask you, your Excellencies, to inform us about this transaction in general: is it permissible or not? I also ask you to inform me whether it is permissible or not if this aforementioned transaction only takes place among us traders, where there is mutual trust and a commercial necessity to carry out this transaction? I ask you to inform me, and I offer you my sincere thanks and appreciation?”
The Shaykh : It is established in the authentic hadith of 'Ubadah ibn al-Samit (may Allah be pleased with him) that the Prophet (peace and blessings be upon him) saidMishkat al-Masabih 2808 So, selling gold for gold requires two conditions. The first condition is equality in weight, such that one does not exceed the other.
And the second condition is the exchange of possession in the session of the contract by both parties.
The questioner : Yes.
The Shaykh : Such that you deliver to him and he delivers to you without delay. If one of the conditions is not met, the contract is invalid and constitutes riba. It is well known what has come regarding the severe warning against riba in the Qur'an and the Sunnah. Allah the Exalted said regarding those who deal in riba:[Al-Baqarah 2:275] [Al-Baqarah 2:276].
The questioner : Yes.
The Shaykh : And the Prophet (peace and blessings be upon him) cursed five people in regard to riba: the one who eats it, the one who gives it, the scribe, and the two witnesses. He said:.
The questioner : Yes.
The Shaykh : As for selling gold for silver, or for what is a substitute for it, such as paper currency, one condition is required: the exchange of possession in the session of the contract. This means that both the seller and the buyer must take possession of what belongs to them without delay, based on the saying of the Prophet (peace and blessings be upon him):Sahih Muslim 1587c. Accordingly, traders buying and selling gold without the seller receiving the price from the buyer is forbidden, even if he trusts him. In fact, it is obligatory that it be hand-to-hand. It is regrettable that many gold traders who sell jewelry are lax in this matter. Among the strange and wonderful things is that these people who sell and delay receiving the price are actually harming themselves in both the religious and worldly aspects. As for the religious aspect, they are contradicting the command of the Messenger of Allah (peace and blessings be upon him), who said, “hand-to-hand.” As for the worldly aspect, there is no doubt that selling for cash is safer and more secure for the seller, because perhaps you will give him time trusting him, and things may not turn out as they should. He may fall ill and die, and something may be lost from him, and he may delay paying you, among other reasons that necessitate delaying delivery to a time you, the seller, do not accept, or... the complete non-delivery.
The questioner : Yes.
The Shaykh : Therefore, we see that it is an error, and even foolishness, for people to trade in gold without taking possession. You have no blame if you say, “Either you pay, or I will not sell to you.” Is there any blame on you? Many goods today are sold for cash; if a person does not have cash, people do not sell to him. In that case, he is forced to take the price with him before he goes to the person in need to buy from them.
The questioner : Yes.
The Shaykh : Yes.
The questioner : May Allah reward you, O gentlemen. We come to an end here.
The Shaykh : It is established in the authentic hadith of 'Ubadah ibn al-Samit (may Allah be pleased with him) that the Prophet (peace and blessings be upon him) said
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 on the spot. If these classes differ, sell as you wish if payment is made on the spot.
الذهب بالذهب والفضة بالفضة والبر بالبر والشعير بالشعير والتمر بالتمر والملح بالملح مثلا بمثل سواء بسواء فإذا اختلفت هذه الأصناف فبيعوا كيف شئتم إذا كان يدا بيدAnd the second condition is the exchange of possession in the session of the contract by both parties.
The questioner : Yes.
The Shaykh : Such that you deliver to him and he delivers to you without delay. If one of the conditions is not met, the contract is invalid and constitutes riba. It is well known what has come regarding the severe warning against riba in the Qur'an and the Sunnah. Allah the Exalted said regarding those who deal in riba:
But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.
ومن عاد فأولئك أصحاب النار هم فيها خالدونAllah destroys interest and gives increase for charities. And Allah does not like every sinning disbeliever.
يمحق الله الربا ويُربي الصدقات والله لا يحب كل كفار أثيمThe questioner : Yes.
The Shaykh : And the Prophet (peace and blessings be upon him) cursed five people in regard to riba: the one who eats it, the one who gives it, the scribe, and the two witnesses. He said:
They are all the same.
هم سواءThe questioner : Yes.
The Shaykh : As for selling gold for silver, or for what is a substitute for it, such as paper currency, one condition is required: the exchange of possession in the session of the contract. This means that both the seller and the buyer must take possession of what belongs to them without delay, based on the saying of the Prophet (peace and blessings be upon him):
then sell as you wish if payment is made hand to hand
فبيعوا كيف شئتم إذا كان يدا بيدThe questioner : Yes.
The Shaykh : Therefore, we see that it is an error, and even foolishness, for people to trade in gold without taking possession. You have no blame if you say, “Either you pay, or I will not sell to you.” Is there any blame on you? Many goods today are sold for cash; if a person does not have cash, people do not sell to him. In that case, he is forced to take the price with him before he goes to the person in need to buy from them.
The questioner : Yes.
The Shaykh : Yes.
The questioner : May Allah reward you, O gentlemen. We come to an end here.