Dealing in gold

Q: I have one question regarding earnings. Is it halaal or haram. There is one company doing gold trading. If I open an account I will pay them some amount and they will open a gold account for me. Gold rates are linked with the real gold rates which are current internationally. When I buy gold from my money, I buy a lot of gold and then this gold is not physical in real. The gold purchased is from the money and if I want to sell that gold, I can get my money back (not the gold) to my account. It could be profit or loss.

A: When dealing in gold, the sale has to be a cash sale and possession of the exchange is necessary. From what we have understood, this is not found in your situation. Hence, it will not be permissible.

And Allah Ta'ala (الله تعالى) knows best.


Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)