The Ruling on Trading in Gold
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Question: What is the ruling on one who trades in gold; that is, buys gold when its price drops and sells it when its price rises?
Answer: There is no harm in selling gold for gold, provided it is like for like, weight for weight, equal in amount, hand to hand, whether the gold is new or old, or one is new and the other old.
Likewise, there is no harm in selling gold for silver or for paper currency, provided it is hand to hand; based on the saying of the Prophet (peace and blessings be upon him):Mishkat al-Masabih 2808.
Muslim narrated it in his Sahih; and based on his (peace and blessings be upon him) saying in the hadith of Abu Sa'id al-Khudri (may Allah be pleased with him) :Sunan an-Nasa'i 4570Sahih (Darussalam). It is agreed upon that it is authentic.
These two authentic hadiths indicate that there is no difference between buying gold with gold for personal use, or with the intention of profit after its price changes, provided the buying and selling are done in the manner mentioned in the two hadiths. And success is from Allah.
Answer: There is no harm in selling gold for gold, provided it is like for like, weight for weight, equal in amount, hand to hand, whether the gold is new or old, or one is new and the other old.
Likewise, there is no harm in selling gold for silver or for paper currency, provided it is hand to hand; based on the saying of the Prophet (peace and blessings be upon him):
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، والتمر بالتمر، والشعير بالشعير، والملح بالملح، مثلًا بمثل، سواءً بسواء، وزنًا بوزن، يدًا بيد، فإذا اختلفت هذه الأصناف فبيعوا كيف شئتم إذا كان يدًا بيدMuslim narrated it in his Sahih; and based on his (peace and blessings be upon him) saying in the hadith of Abu Sa'id al-Khudri (may Allah be pleased with him) :
Do not sell gold for gold except like for like and do not differentiate. Do not sell silver for silver except like for like, and do not sell it in return for something to be paid later.
لا تبيعوا الذهب بالذهب إلا مثلًا بمثل، ولا تُشِفُّوا بعضها على بعض، ولا تبيعوا منها غائبًا بناجزThese two authentic hadiths indicate that there is no difference between buying gold with gold for personal use, or with the intention of profit after its price changes, provided the buying and selling are done in the manner mentioned in the two hadiths. And success is from Allah.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.