Ruling on trading with gold

13-2-2012 | IslamWeb

Question:

is it haram to purchase gold and sale when the price increases?

---

Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

It is permissible to purchase gold in order to trade with it and sell it when its price increases; indeed, this is included in the Saying of Allaah The Almighty (which means): {But Allaah has permitted trade and has forbidden interest.} [Quran 2:275]

However, it is a condition when buying or selling gold, even with the currencies that are exchanged between the people [today], that giving the product and receiving the money between the seller and buyer should be upon the completion of the contract. This should either occur tangibly (i.e., cash in return for the product] or something that serves and takes the ruling of receiving cash and exchanging hand to hand (like a bank draft or check). The Prophet said: ''…if the (traded product) types differ, then sell as you wish if payment is made hand to hand.” [Muslim]

If monetary currency is exchanged with gold, they are considered as another kind, so this is included in the general meaning of the saying of the Prophet said: ''…if the (traded product) types differ, then sell as you wish if payment is made hand to hand.”

For more benefit, please refer to Fataawa 133410, 96404 and 123193.

Allaah Knows best.