Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
Islam has established specific rulings for gold and silver that differ from other commodities and services, as they are the foundational essence of currency (Asl al-Athman). Among these rulings are the requirements of immediate hand-to-hand exchange (Taqabud) and equality in weight (Tamathul) when they are of the same genus. The Messenger of Allah ﷺ said: "Do not sell gold for gold except like for like, and do not increase one over the other; and do not sell silver for silver except like for like, and do not increase one over the other; and do not sell that which is absent [deferred] for that which is present [immediate]." (Narrated by Muslim).
Imam al-Nawawi (may Allah have mercy on him) stated: "The scholars have reached a consensus (Ijma') on the prohibition of selling gold for gold, or gold for silver, with deferred payment." [Sharh al-Nawawi 'ala Muslim, 11/10].
Consequently, selling gold on installments (credit) is prohibited, as it is considered a form of Usury of Delay (Riba al-Nasi’ah). Modern paper currency and gold share the same legal effective cause ('Illah), which is "monetary value" (Thamaniyyah). Therefore, it is impermissible to sell one for the other with a delay. This is based on the Prophet’s ﷺ statement: "Gold for gold is Riba except if it is 'take and give' [immediate]." (Agreed upon). The phrase "take and give" (Ha' wa Ha') means a hand-to-hand transaction where neither of the two counter-values is delayed.
There is no religious objection to borrowing gold (Istiqrad), provided that the same weight and quality are returned. It is also permissible to repay the loan with a different currency or genus at the time of settlement, based on the market price on the day of repayment. However, this is strictly conditional upon the fact that this exchange is not stipulated at the time of the initial contract. If it were stipulated at the start, it would be classified as a "sale" rather than a "loan," thereby making any delay in the exchange of the two counter-values prohibited.
In conclusion, the fundamental rule is that gold must be sold for cash immediately, without any delay in either the delivery of the gold or the payment of the price. And Allah the Exalted knows best.
