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Resolutions of Iftaa' Board

Resolution No.(78): “Ruling on Selling Gold Jewels for Native Gold of Unequal Weight“

Date Added : 02-11-2015

 

Resolution No.(78) by the Board of Iftaa`, Research and Islamic Studies:

“Ruling on Selling Gold Jewels for  Native Gold of Unequal Weight“

Date: 27/4/1425 AH, corresponding to 16/6/2004 AD.

 

 

Question:

What is the ruling when a goldsmith offers gold jewels of a particular weight as a loan to a dealer of jewels in return for a particular wage, then the latter settles that loan by giving the former an equal amount of Native gold by installments, in addition to the agreed upon wage ?

Answer: All success is due to Allah.

The Board is of the view that it is permissible to sell formed gold for Native gold of unequal weight, considering the extra weight as a compensation for the workmanship, whether the sale was by cash or by installments (1) unless this gold was intended for its price, and this is the view adopted by Ibn Taymyah, Ibn Al-Qayiim, Alhasan, Ibrahim, Al-Sho`abi, Moaweiyah Bin Abi Sufian and Al-Hasan Al-Bassri.

Evidences supporting this view are as follows:

1- Formed  gold(final product)used for women`s ornament is classified, through the allowed workmanship, amongst the permitted manufactured items such as clothes and goods, and as it isn`t intended for its price and is set for trading, there is no harm in selling it for Native gold of an unequal weight.

2- Formed gold has an advantage over Native gold because of the workmanship; therefore, it is permissible to sell it for Native gold of unequal weight, where the difference in weight compensates for the workmanship.

3- Banning such a sale does harm to the interests of craftsmen, because this means that they stop producing golden ornaments as they receive nothing in return for their workmanship in case they sold these for an equal amount of Native gold.

4- Prophetic narrations prohibit selling gold for gold of unequal weight in case it was intended for its price, and this is mentioned in the Hadith narrated by Abu Hurairah: “Gold is to be paid for by gold with equal weight, like for like, and silver is to be paid for by silver with equal weight, like for like. He who made an addition to it or demanded an addition dealt in usury.” {Muslim}.This is because the reason behind prohibiting usury in gold and silver is intending their prices, so once they aren`t intended as such, it becomes permissible to sell gold for gold of equal weight, and the same applies to silver.

The prohibition also applies to using utensils made of gold or silver as well as wearing gold by men since the Prophet (PBUH) forbade such things.

Moreover, the prohibition extends to other items which aren`t made by man such as dates, for good and bad dates are the creation of Allah, so selling dates for dates of unequal weight is forbidden.

This is indicated in the Hadith narrated by Abu Saeid Alkhudari and Abu Hurairah (May Allah Be Pleased with them): “Allah's Messenger (PBUH) appointed somebody as a governor of Khaibar. That governor brought to him an excellent kind of dates (from Khaibar). The Prophet (PBUH) asked: "Are all the dates of Khaibar like this?" He replied: "By Allah, no, O Allah's Messenger (PBUH)! But we barter one Sa of this (type of dates) for two Sas of dates of ours and two Sas of it for three of ours." Allah's Messenger (PBUH) said: "Do not do so (as that is a kind of usury) but sell the mixed dates (of inferior quality) for money, and then buy good dates with that money." {Bukhari}.

Although the Board is of the view that such an act is permissible, it recommends avoiding  it, save when deemed necessary.

Note (1): The transaction mentioned in the above question contradicts the Prophet`s Hadith: “Don't sell gold for gold unless equal in weight “ {Bukhari&Muslim}.

This Hadith mentions gold in general; therefore, the questioner should first sell the formed gold for dinars, then buy the gold that he wants  in order to avoid usury as mentioned in the Hadith of Abu Sa'eed Al-Khudri. And Allah Knows Best.

 

Iftaa` Board
Chairman of the Iftaa` Board, Chief Justice, Izzaldeen Al-Tamimi
Dr. Wasif Al-Bakhri
Dr. Abdulsalam  Al-Abbadi
Dr. Yousef Ghyzaan
Dr. Moh. Abu Yahia
Sheikh Sae`id Hijjawi
Sheikh Abdulkareem Khasawneh

 

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Summarized Fatawaa

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