Dealing in gold

Q: There is a company that carries out gold trading. 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, this gold is not physical. Rather, it is just the value of the gold that reflects. 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: In order for the transaction to be valid, it is a precondition that one be able to take possession of the sale commodity. If one is unable to take possession of the sale commodity, the transaction will not be permissible. Hence, since it is not possible for you to take possession of the gold, it will not be permissible.

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


Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)