What is the ruling on buying and selling gold?
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Question:
May Allah reward you and bless you. We have received this question from a questioner, N.A.M., who says: “O honorable Shaykh Saleh, what is the ruling on buying and selling gold, specifically through our dealings with the global stock exchange, markets, and the like?”
Answer:
Answer: Dealing in the buying and selling of gold, if gold is sold for gold, or sold for silver, or for paper currency that serves as their equivalent, then if it is sold for its own kind, gold for gold, two conditions are necessary: exchange in the presence of the parties, and equality in quantity by weight. However, if it is sold for a different kind, such as gold for silver, it is forbidden to defer the transaction or to separate before taking possession by both parties, while excess is permissible. The Prophet (peace and blessings be upon him) said: “When these kinds differ, sell as you wish, provided it is hand to hand,” meaning exchange in the presence of the parties. If this is fulfilled, there is no harm in selling gold. But if this is not fulfilled, it is forbidden, being either usury of excess in a like-for-like exchange or usury of deferment. Yes.
May Allah reward you and bless you. We have received this question from a questioner, N.A.M., who says: “O honorable Shaykh Saleh, what is the ruling on buying and selling gold, specifically through our dealings with the global stock exchange, markets, and the like?”
Answer:
Answer: Dealing in the buying and selling of gold, if gold is sold for gold, or sold for silver, or for paper currency that serves as their equivalent, then if it is sold for its own kind, gold for gold, two conditions are necessary: exchange in the presence of the parties, and equality in quantity by weight. However, if it is sold for a different kind, such as gold for silver, it is forbidden to defer the transaction or to separate before taking possession by both parties, while excess is permissible. The Prophet (peace and blessings be upon him) said: “When these kinds differ, sell as you wish, provided it is hand to hand,” meaning exchange in the presence of the parties. If this is fulfilled, there is no harm in selling gold. But if this is not fulfilled, it is forbidden, being either usury of excess in a like-for-like exchange or usury of deferment. Yes.
Source
www.alfawzan.af.org.sa
The Arabic text is copied verbatim from the original source, without any edits.