Subject : Ruling on Buying Gold with Uncollected Checks

Fatwa Number : 3215

Date : 08-08-2016

Classified : Transactions & Marketing

Fatwa Type : Search Fatawaa

Question :

What is the ruling of Sharia on buying gold with uncollected checks?

The Answer :

All perfect praise be to Allah, The Lord of the Worlds, and may His peace and blessings be upon our Prophet Mohammad and upon all his family and companions. The Law-Maker forbids selling gold or silver in return for uncollected checks as this is a form of Riba(Usury/interest) since this transaction isn`t done hand in hand in one session(i.e. in the same sale contract). Moreover, money and gold are forms of payment, which is the I`llah(Effective case) of Riba. In conclusion, it is forbidden to sell gold for uncollected checks except if the exchange is from hand to hand in one session. The Prophet(PBUH) said, "The selling of gold for gold is Riba (usury) except if the exchange is from hand to hand and equal in amount," {Agreed upon} ."Hand in hand" means it is forbidden to delay the payment of any. And Allah knows best.

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