Ruling on buying new gold with the price of old gold
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Question: A woman goes to the gold market with her old gold, presents it to the goldsmith, and says to him: "Estimate its price for me." When he estimates the price for her, she says to him: "Give me new gold for the price of this gold." Is there anything in this that conflicts with the noble Shari'ah of Islam?
Answer: This transaction is not permissible; because it is selling gold for gold without knowing the equivalence. It is authentic from the Messenger of Allah (peace and blessings be upon him) that he said:. Muslim narrated it in his Sahih with wording more extensive than this.
It is also not permissible to sell her gold for other gold with an addition; because that prevents the equivalence required for the validity of the transaction.
The only lawful path in such a case is: that she sell the gold she has for an independent price, which she receives from the owner of the gold she needs to buy from, or from someone else, in an independent transaction that contains no riba.
Among the permissible transactions in such a case is: that she buy the gold item from him with paper or silver currency, hand to hand, or with other wealth besides currency, even if deferred; such as coffee, cardamom, rice, sugar, clothes, and the like; because there is no riba between the gold item and these moneys. And success is from Allah.
Answer: This transaction is not permissible; because it is selling gold for gold without knowing the equivalence. It is authentic from the Messenger of Allah (peace and blessings be upon him) that he said:
Gold for gold, and silver for silver, like for like, equal in amount, weight for weight, hand to hand. So whoever increases or asks for an increase has committed riba.
الذهب بالذهب، والفضة بالفضة، مثلًا بمثل سواءً بسواء، وزنًا بوزن، يدًا بيد، فمن زاد أو استزاد فقد أربىIt is also not permissible to sell her gold for other gold with an addition; because that prevents the equivalence required for the validity of the transaction.
The only lawful path in such a case is: that she sell the gold she has for an independent price, which she receives from the owner of the gold she needs to buy from, or from someone else, in an independent transaction that contains no riba.
Among the permissible transactions in such a case is: that she buy the gold item from him with paper or silver currency, hand to hand, or with other wealth besides currency, even if deferred; such as coffee, cardamom, rice, sugar, clothes, and the like; because there is no riba between the gold item and these moneys. And success is from Allah.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.