Rafed English

Fatwas on Buying and Selling Gold, Silver and Money

Q1587: If the buyer and seller are agreed, is it permissible to sell gold bullion on credit, for a price higher than the present market price? And is the profit made from such a deal ḥalāl?
A: Specifying the price, i.e. cash or credit, in the sale contract is the prerogative of both parties of the contract. Accordingly, there is no harm in the deal described in the question. Nor is there any harm in the profit made thereof. However, selling gold for gold, whether differential or on credit is not permissible.

Q1588: What is the ruling in the matter of making gold jewelry? How should one go about dealing in it?
A: There is no harm in making and selling gold jewelry. However, when selling one piece of gold for another, the two pieces should be equal in weight and handed over at the time and place of sale.

Q1589: Is it permissible to buy and sell banknotes on credit for a price that is higher than their nominal value?
A: In case it is concluded with a serious intention and for a rational purpose, for example, they are different in respect of being new brand/worn out, having special signs on them, or of different value; there is no objection to doing so. However, if it is not concluded with a serious intention but only to circumvent the law prohibiting ribā; it is ḥarām and invalid in Islamic law.

Q1590: Some vendors sell coins, used to make telephone calls, for more than their real value. What is the view on such dealings?
A: There is no harm in selling and buying the coins for a price more than their real value for use in making telephone calls and the like.

Q1591: A currency dealer bought old currency for the price of new, not knowing that its value was almost half of that of the current one. This dealer sold the same currency for the same price. Is it obligatory on the person who thinks that they did not treat the buyer fairly to inform him of the "unfairness"? Are such deals valid and, therefore, can one have the right of disposal of the profit made thereof, or could it be a case of money of anonymous owner or that of tainted money?
A: There is no objection to buying old currency in a deal for a price agreed between two parties, even though the price of the old currency is much less than the current one. Thus, the sale is valid, although it may be seen as unfair. This is so because the object offered for sale is real property which has value, albeit cheaper than the current currency. Thinking that he did not treat the buyer fairly, the vendor is not required to inform him. Any profits that may have been made from such dealings should be treated as the rest of his property. Accordingly, the person has the right of disposal over such income unless the person has revoked the sale.

Q1592: What is the ruling in the matter of buying and selling banknotes, not for what they are, i.e. a means of monetary exchange, rather for having a special value? To give an example, one may be interested in acquiring the green backed banknote of one-thousand Toman denomination, which bears the picture of the late Imam Khomeini, for more than its nominal value.
A: There is no harm in that provided that dealing in such banknotes is both serious and for a sensible reason. If this sale is on credit, i.e., just a formality intended to circumvent a ribā-based loan transaction, it is ḥarām and invalid.

Q1593: What is the view on dealing in money exchange, especially foreign currency?
A: There is no objection to it in itself.

Q1594: What is the ruling on buying government bonds? And is it permissible to deal in these bonds?
A: If you mean government bonds offered for sale to the public to raise money, there is no objection to taking part in lending to the government by way of buying these bonds. If the holder of these bonds wishes to sell the same to get his money back, either to another person or to the state for the same value or less, there is no harm in it.

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