al-Fatawa al-Dhahabiyya fi Bay wa Shira al-Dhahab
- Author died
- 1421 AH
- Editions
- al-Fatawa al-Dhahabiyya fi Bay wa Shira al-Dhahab
al-Fatawa al-Dhahabiyya fi Bay wa Shira al-Dhahab (The Golden Legal Rulings on Buying and Selling Gold) is a specialized legal compilation containing the juristic responses and fatwas of the Saudi scholar Ibn Uthaymin (d. 1421 AH / 2001 CE) concerning Islamic rulings on commercial transactions involving gold, silver, currencies, and jewelry.
Subject Matter and Scope
The collection compiles questions and practical inquiries posed by gold merchants, jewelers, and consumers regarding the application of Islamic commercial law (fiqh al-mu‘amalat) to gold trade. Its contents focus on the rules of currency exchange (al-sarf) and the avoidance of usurious transactions (riba) in both traditional and contemporary mercantile contexts .
Key Legal Rulings
Gold-for-Gold Transactions
The fatwas emphasize that trading gold for gold requires strict fulfillment of two core conditions: exact equivalence in weight (al-tamathul) and immediate reciprocal exchange in the contract session prior to parting (al-taqabud) .
Based on prophetic traditions, the author rules that exchanging used or scrap gold for newly crafted gold with an added cash margin to cover manufacturing labor (ujrat al-tasni‘) constitutes forbidden usury (riba). To conduct such transactions lawfully, the customer must first sell the old gold independently for paper currency, receive the full payment, and subsequently purchase the new jewelry in a separate contract . Merchants are also prohibited from stipulating that a seller of used gold must purchase new items from them in return, as this constitutes an unlawful legal device (hila) designed to circumvent usury prohibitions .
Sale of Gold for Paper Currency
The work establishes that modern paper banknotes function legally as silver and standard currencies in exchange rules . Consequently, when purchasing gold with paper money, immediate hand-to-hand delivery (yadan bi-yad) of both the gold and the full price is mandatory before the parties separate .
The author prohibits any delayed payment (al-ajal), installment plans (al-taqsit), or leaving an unpaid balance on gold purchases made with money, classifying such deferrals as usury of delay (riba al-nasi'ah) . This requirement applies universally regardless of kinship or familiarity between the merchant and the buyer . However, purchasing gold on credit is permissible if the price is paid in non-usurious commodities that share no currency or weight parity with gold, such as foodstuffs, motor vehicles, or real property .
Modern Payment Methods and Commercial Practices
The collection addresses modern commercial instruments:
- Debit cards and electronic transfers: Purchasing gold using direct point-of-sale debit cards (bitaqat al-sahb al-fawri) is permitted because the instant electronic transfer of funds from the buyer's account directly into the merchant's account fulfills the requirement of immediate mutual possession prior to departure .
- Checks: Paying for gold via standard uncertified checks is deemed invalid because a check represents an order of transfer rather than immediate physical or constructive receipt, unless it is a certified bank check confirmed during the transaction .
- Reservations and consultation: Reserving gold items by paying a partial deposit under a concluded sale is impermissible; however, holding gold as collateral (rahn) while a buyer consults family before entering into a formal contract is permitted, provided no sale agreement is made until the full payment is delivered .
Manufacturing and Gender Regulations
The treatise permits customers to provide raw bullion or gold items to a jeweler solely for manufacturing (siyagha) into jewelry for an agreed-upon labor fee . In contrast, selling gold rings designed specifically for men is forbidden when the merchant knows or suspects the buyer will wear them, citing the Islamic prohibition against men wearing gold and the Quranic command forbidding cooperation in sin .
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