Purchasing gold coins from FNB

Q: May people purchase a gold coin using the FNB Share Builder account. Is this permissible?

A: According to the Islamic principle, it is not permissible to sell a commodity which one does not own. Hence, if FNB bank informs the client that they have sold the gold to him before they purchase it from Rand Refinery Ltd, then this transaction obviously will not be permissible as it opposes the Hadith of Rasulullah (Sallallahu Alayhi Wasallam). Rasulullah (Sallallahu Alayhi Wasallam) said, “Do not sell that which you do not own.” (Sunan Tirmizi #1232). However, if FNB bank acts as an agent on behalf of Rand Refinery Ltd in selling the gold, then the transaction will be permissible.

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


Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)