Question

What is the ruling on buying/selling gold and silver on the internet if it is the case that the person pays for the gold/silver but then receives the gold/silver after a period of time such as 24 hours later?

Answer

All praise is due to Allah.

This type of transaction is not allowed. The reason for this is that one of the conditions when buying/selling gold or silver is that the exchange must occur in the same gathering. This means that the buyer gives the money and the seller gives the gold/silver in the same gathering. It is as the Prophet ﷺ said “…hand to hand”. The completion of this exchange is not allowed to be delayed a day or 2 days.

When buying and selling online, this condition is not fulfilled. An individual will purchase some gold/silver online and the money leaves their account. This part is correct and would be treated as having fulfilled the first part of the exchange; passing over payment from the buyer to the seller. However, what remains is the second part of the exchange which is the buyer acquiring and gaining possession of the gold/silver that they have paid for.  As mentioned, with gold/silver this must be received in the same gathering which is not the case here, thereby nullifying the contract.

A solution to this is to use online platforms as a way to enquire, state your interest, or reserve the gold without actually buying it. A person can say to the company “I want to buy a particular amount of gold/silver and if you come to me with it [or I come to you] then I will buy it in person either via cash or bank transfer”.

All the transactions found online in relation to gold/silver that are being carried out in line with what was mentioned in the question are not correct and it is not allowed for a Muslim to partake in them.

Allah knows best.

And all praise is due to Allah Lord of the Ālamīn.

Transcript of Sheikh Abd al-Haqq Turkmāni’s answer

27 May 2024 | 19 Dhul-Qa’dah 1445