How to Transact in Gold and Silver
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Question: From Abdul Aziz ibn Abdullah ibn Baz, to the honorable brother / A. M. S. - May Allah guide him to what pleases Him, Amen.
Peace be upon you, and Allah's mercy and blessings. After that:
Your noble letter, attached herewith, containing your question about: How to transact in gold and silver, has reached me. May Allah guide you to the rope of guidance and success, and increase us and you and all our Muslim brothers in beneficial knowledge and acting upon it; He is indeed Generous and Bountiful.
Answer: The answer to your question has been clarified by the Prophet (peace and blessings be upon him), who said:Mishkat al-Masabih 2809.
There are many hadiths in this meaning, and they are general for all types of currency exchange, and for all conditions of gold and silver; whether they are coins, jewelry, or pieces of gold and silver that are not minted. It is not permissible to sell gold for gold absolutely, except like for like, weight for weight, hand to hand, and likewise for silver.
As for selling gold for silver and silver for gold, there is no harm in that with a difference in amount; because gold is more noble and more expensive than silver. But it must be hand to hand, in the assembly before parting.
As for if one sells gold for another money other than gold and silver - such as food, utensils, clothes, lands, and the like - there is no harm in parting before taking possession by one of them, if the sold item and the price are known and not in the debt.
As for if the sold item is in the debt, it is necessary to take possession of the price in the assembly. And if the sale is deferred, it is necessary that the term be known with taking possession of the price in the assembly, like the sale of Salam; so that the sale does not become a debt for a debt.
May Allah guide everyone. And peace be upon you and the mercy of Allah and His blessings.
The Grand Mufti of the Kingdom
Abdul Aziz ibn Abdullah ibn Baz
Peace be upon you, and Allah's mercy and blessings. After that:
Your noble letter, attached herewith, containing your question about: How to transact in gold and silver, has reached me. May Allah guide you to the rope of guidance and success, and increase us and you and all our Muslim brothers in beneficial knowledge and acting upon it; He is indeed Generous and Bountiful.
Answer: The answer to your question has been clarified by the Prophet (peace and blessings be upon him), who said:
Abu Sa'id al-Khudri reported God’s Messenger 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, payment being made on the spot. If anyone gives more or asks more he has dealt in usury. The receiver and the giver are equally guilty.” Muslim transmitted it.
الذهب بالذهب، والفضة بالفضة، مثلًا بمثل، وزنًا بوزن، يدًا بيد، فمن زاد أو استزاد فقد أربىThere are many hadiths in this meaning, and they are general for all types of currency exchange, and for all conditions of gold and silver; whether they are coins, jewelry, or pieces of gold and silver that are not minted. It is not permissible to sell gold for gold absolutely, except like for like, weight for weight, hand to hand, and likewise for silver.
As for selling gold for silver and silver for gold, there is no harm in that with a difference in amount; because gold is more noble and more expensive than silver. But it must be hand to hand, in the assembly before parting.
As for if one sells gold for another money other than gold and silver - such as food, utensils, clothes, lands, and the like - there is no harm in parting before taking possession by one of them, if the sold item and the price are known and not in the debt.
As for if the sold item is in the debt, it is necessary to take possession of the price in the assembly. And if the sale is deferred, it is necessary that the term be known with taking possession of the price in the assembly, like the sale of Salam; so that the sale does not become a debt for a debt.
May Allah guide everyone. And peace be upon you and the mercy of Allah and His blessings.
The Grand Mufti of the Kingdom
Abdul Aziz ibn Abdullah ibn Baz
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.