Fatwa ID: 09377
Answered by Mufti Sakib Shadman
Question:
السلام عليكم ورحمة الله وبركاته
Any Fatāwā regarding selling gold online or via electronic future transfers?
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
When exchanging gold for the same or a different commodity, the exchange must be hand‑to‑hand. When selling on the futures market, the gold is not immediately exchanged; rather, the delivery of the commodity is deferred, resulting in Ar‑Riba An‑Nasī’ah (interest due to delayed delivery of one of the counter‑values) [3]. Often, no actual gold is exchanged, and you are simply paying for the right/obligation to purchase gold in the future at a fixed price, as is the case with options/future trading. This speculative transaction results in Ar‑Riba An‑Nasī’ah, due to the deferred transfer of ownership of the gold. Finally, in many cases the gold being traded does not exist in the ownership of the seller; rather, he merely owns a right or contract to sell gold. Accordingly, it is impermissible to sell an item which is not currently in one’s possession. [4] For all these reasons, exchanging gold via electronic futures transfers is absolutely haram.
Secondly, selling gold online will be permissible if the gold is exchanged simultaneously and instantly, and there is an actual transfer of legal ownership of the gold, i.e., allocated gold stored in your name, with legal ownership transferred to you. [2]
If the gold broker only provides the following, it will not be permissible to purchase this commodity because of the lack of transfer of ownership and the absence of gaining possession (qabd) of the item:
- Notional gold
- Paper gold
- CFD (contract for difference)
- A “gold account” without actual allocation
In conclusion, exchanging gold is only permissible if the gold is exchanged hand‑to‑hand and if there is an actual transfer of ownership. [1] You do not have to physically touch or take physical possession of the gold; rather, a specific quantity of gold must be transferred under your name.
Only Allah ﷻ knows best.
Written by Mufti Sakib Shadman
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
References:
[1]
فَإِنَّ الْأَجَلَ فِي أَحَدِ الْعِوَضَيْنِ فَضْلٌ حُكْمِيٌّ بِلَا عِوَضٍ، وَلَمَّا كَانَ الْأَجَلُ يُقْصَدُ لَهُ زِيَادَةُ الْعِوَضِ كَمَا مَرَّ فِي الْمُرَابَحَةِ صَحَّ وَصْفُهُ بِكَوْنِهِ فَضْلَ مَالٍ حُكْمًا تَأَمَّلْ
Radd Al-Muhtaar, Halabi ed., Daar Al-Fikr, 1966. Vol.5 p.168.
[2]
وَالتَّقَابُضُ) بِالْبَرَاجِمِ لَا بِالتَّخْلِيَةِ (قَبْلَ الِافْتِرَاقِ) وَهُوَ شَرْطُ بَقَائِهِ صَحِيحًا عَلَى الصَّحِيحِ
Radd Al-Muhtaar, Halabi ed., Daar Al-Fikr, 1966. Vol.5 p.258.
[3]
قَوْلُهُ مُتَسَاوِيًا) أَمَّا إذَا وُجِدَ التَّفَاضُلُ مَعَ النَّسَاءِ فَالْحُرْمَةُ لِلْفَضْلِ أَفَادَهُ ابْنُ كَمَالٍ ط (قَوْلُهُ وَأَحَدُهُمَا نَسَاءٌ) أَيْ ذُو نَسَاءٍ وَالْجُمْلَةُ حَالِيَّةٌ قَالَ ط: فَلَوْ كَانَ كُلٌّ نَسِيئَةً يَحْرُمُ أَيْضًا لِأَنَّهُ بَيْعُ الْكَالِئِ بِالْكَالِئِ ابْنُ كَمَالٍ أَيْ النَّسِيئَةِ بِالنَّسِيئَةِ كَمَالٌ
ثُمَّ اعْلَمْ أَنَّ ذِكْرَ النَّسَاءِ لِلِاحْتِرَازِ عَنْ التَّأْجِيلِ، لِأَنَّ الْقَبْضَ فِي الْمَجْلِسِ لَا يُشْتَرَطُ إلَّا فِي الصَّرْفِ وَهُوَ بَيْعُ الْأَثْمَانِ بَعْضِهَا بِبَعْضٍ أَمَّا مَا عَدَاهُ فَإِنَّمَا يُشْتَرَطُ فِيهِ التَّعْيِينُ دُونَ التَّقَابُضِ
Radd Al-Muhtaar, Halabi ed., Daar Al-Fikr, 1966. Vol.5 p.172.
[4]
وَبَيْعُ مَا لَيْسَ فِي مِلْكِهِ) لِبُطْلَانِ بَيْعِ الْمَعْدُومِ
Radd Al-Muhtaar, Halabi ed., Daar Al-Fikr, 1966. Vol.5 p.58.