Ruling on selling gold on credit with installments
Machine translationRead the Arabic original
Question:
Wholesale traders sell gold on credit, to be paid in installments. For example, a retail gold seller buys for one hundred thousand, or less, or more, and pays it off in installments. Is there sin in this... gold for gold with a difference in craftsmanship?
Answer:
This is not permissible. Selling gold, or any other currency, on credit is not permissible; this is riba. If he sells gold for dollars, or British pounds, or Jordanian dinars, or Iraqi dinars, or anything else, or for Saudi currency on credit, or with separation without possession, this is riba.
The Prophet (peace and blessings be upon him) said:Sahih Muslim 1587c If there is a difference in value, there is no harm in exchanging them, but it must be hand to hand. So selling gold for dollars, or silver, or dinars, or Saudi riyals, hand to hand, is fine. But if it is deferred, or at another time, meaning he says to him: I will give it to you later; that is not valid. It must be hand to hand.
Likewise, selling gold for gold in greater quantity, new gold for old gold with a difference, this is not permissible, because gold... must be like for like, equal in amount.
When a man bought a necklace at Khaybar, a necklace containing gold and beads, the Prophet (peace and blessings be upon him) disapproved of it and said:Jami` at-Tirmidhi 1255Sahih (Darussalam) Meaning: it is not to be sold until the gold is separated for itself, and the beads for themselves. And what they do, they say, is in exchange for the craftsmanship. This is a mistake. It is obligatory that gold be sold for another currency so that riba does not occur. As for gold for gold, even if this is better and that is worse, it must be like for like.
When some of the Companions bought two sa' of dates for three sa' of dates, the Prophet (peace and blessings be upon him) disapproved of it and said: "Aww" — meaning — the very essence of riba, even though the two sa' are better than the three, because it is good dates. But the Prophet (peace and blessings be upon him) disapproved of it and said: Meaning: good dates.
Wholesale traders sell gold on credit, to be paid in installments. For example, a retail gold seller buys for one hundred thousand, or less, or more, and pays it off in installments. Is there sin in this... gold for gold with a difference in craftsmanship?
Answer:
This is not permissible. Selling gold, or any other currency, on credit is not permissible; this is riba. If he sells gold for dollars, or British pounds, or Jordanian dinars, or Iraqi dinars, or anything else, or for Saudi currency on credit, or with separation without possession, this is riba.
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 hand to hand. If these classes differ, then sell as you wish if payment is made hand to hand.
الذهب بالذهب، والفضة بالفضة، والبر بالبر، والشعير بالشعير، والتمر بالتمر، والملح بالملح، مثلاً بمثل سواء بسواء يدًا بيد، فإذا اختلفت هذه الأصناف؛ فبيعوا كيف شئتم؛ إذا كان يدًا بيدLikewise, selling gold for gold in greater quantity, new gold for old gold with a difference, this is not permissible, because gold... must be like for like, equal in amount.
When a man bought a necklace at Khaybar, a necklace containing gold and beads, the Prophet (peace and blessings be upon him) disapproved of it and said:
Do not sell it until it is separated.
لا تباع حتى تفصلWhen some of the Companions bought two sa' of dates for three sa' of dates, the Prophet (peace and blessings be upon him) disapproved of it and said: "Aww" — meaning — the very essence of riba, even though the two sa' are better than the three, because it is good dates. But the Prophet (peace and blessings be upon him) disapproved of it and said:
The very essence of riba, do not do it. Sell the dates for dirhams, then buy with the dirhams silver.
عين الربا لا تفعل، بع الجمع بالدراهم ثم اشتر بالدراهم جنيبًا
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.