Fatwa

Online gold trading

Question

Is it permissible to trade in online gold?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

If online gold trading fulfils the following conditions, it is permissible.

1. The transaction occurs on a spot basis where atleast one value/currency is exchanged.
2. The gold being sold is clearly held and owned by the seller.
3. The gold is handed over into your possession or your agent (who is not the same seller/company).
4. The seller or company cannot be a buyer and a seller at the same time i.e. they cannot act on your behalf to purchase gold from themselves, nor sell your gold to themselves.

These are some very basic guidelines. In order to ascertain the validity of a specific platform, we require their terms and conditions or contracts.

And Allah Ta’āla Knows Best

Mufti Bilal Pandor

Concurred by
Mufti Muhammad Patel

Darul Iftaa Mahmudiyyah
Lusaka, Zambia

www.daruliftaazambia.com