Ruling on buying gold over the phone and receiving it one or two days later

With regard to
the sale of gold, if it is bought for gold or silver or cash, it is
stipulated that the cash and gold both be present at the time of the meeting
in which the agreement is drawn up. It is not permissible to buy gold in the
manner that you mentioned; rather both the gold and the cash must be present
in the meeting in which the agreement is drawn up, so that the exchange may
be done hand-to-hand, as will be mentioned in the hadith quoted below. This
is what is called an immediate exchange. If this exchange does not take
place, then it comes under the heading of riba an-nasee’ah.

It was narrated
that ‘Ubaadah ibn as-Saamit (may Allah be pleased with him) said: The
Messenger of Allah (blessings and peace of Allah be upon him) said: “Gold
for gold, silver for silver, like for like, same for same, hand to hand. If
any of these thing are different, then sell however you like, so long as it
is hand to hand.”  Narrated by Muslim (2970).

Muslim (1586)
narrated from Maalik ibn Aws ibn al-Hadathaan, that he said: I was going
around saying: Who will exchange dirhams (for my gold)? Talhah ibn
‘Ubaydullah, who was with ‘Umar ibn al-Khattaab, said: Show us your gold,
then come to us later, when our servant comes, and we will give you your
silver. ‘Umar ibn al-Khattaab said: No, by Allah! Either give him his silver
(now) or give him back his gold, for the Messenger of Allah (blessings and
peace of Allah be upon him) said: “Silver for gold is riba, unless it is
exchanged on the spot; wheat for wheat is riba, unless it is exchanged on
the spot; barley for barley is riba, unless it is exchanged on the spot;
dates for dates is riba unless it is exchanged on the spot.”

Paper money
comes under the same ruling as silver in this regard, so it is not
permissible to sell gold for cash except hand-to-hand.

It says in a
statement of the Islamic Fiqh Council belonging to the Organization of the
Islamic Conference:

With regard to
the ruling on paper currency: it has no inherent value, but it is given
value based on universal custom, and it comes under the same shar‘i rulings
as gold and silver with regard to riba, zakaah, salam transactions, and
other rulings.

End quote from

Majallat al-Majma‘,
issue no. 3, vol. 3, p. 1650; issue no. 5, vol. 3, p. 1609

It says in
Fataawa al-Lajnah ad-Daa’imah (13/475):

Sometimes the
shopkeeper buys gold wholesale over the phone, from Makkah or from outside
the Kingdom, when he is in Riyadh, from a goldsmith whom he knows, and the
final product is known to the purchaser, such as whether it is in the form
of bracelets or otherwise, and they agree on the price and he transfers the
money to him through the bank. Is that permissible, or what should he do?

Answer: This
transaction is not permissible either, because the transfer of the two items
– the money and the item purchased – is delayed, and they are both gold, or
one of them is gold and the other is silver or cash, which takes the place
of silver or gold.

This is called
riba an-nasa, and it is haraam. Rather the transaction should take place
when the money becomes available, to be paid according to the price agreed
upon at the time of the contract, and the exchange should be made hand to
hand (on the spot).

Standing
Committee for Academic Research and Issuing Fatwas

‘Abdullah ibn
Ghadyaan, ‘Abd al-‘Azeez ibn ‘Abdillah ibn Baaz. End quote.

It also says
(13/483):

It is not
permissible to sell gold for gold or silver for silver, except like for
like, hand to hand…

If one of the
two items is gold, in the form of jewellery or cash, and the other is
silver, in the form of jewellery or cash, or any other currency, it is
permissible for the two to vary in quantity, but the exchange must be done
before leaving the place where the agreement was made.

Anything other
than that with regard to this matter comes under the heading of riba and is
included in the general meaning of the verse in which Allah, may He be
exalted, says (interpretation of the meaning):

“Those who
consume interest cannot stand [on the Day of Resurrection] except as one
stands who is being beaten by Satan into insanity. That is because they say,
‘Trade is [just] like interest.’ But Allah has permitted trade and has
forbidden interest. So whoever has received an admonition from his Lord and
desists may have what is past, and his affair rests with Allah . But whoever
returns to [dealing in interest or usury] – those are the companions of the
Fire; they will abide eternally therein”

[al-Baqarah
2:275].

Shaykh ‘Abd al-‘Azeez
ibn Baaz, Shaykh ‘Abd ar-Razzaaq ‘Afeefi, Shaykh ‘Abdullah ibn Ghadyaan,
Shaykh ‘Abdullah ibn Qa‘ood.

End quote.

You can call
them to find out the price and make sure that they have the quantity you
want, but the transaction cannot be completed until you go to the shop and
exchange cash for the gold in the meeting in which you conclude the deal.

If the price
changes between the time of your phone call and your going to the shop, what
matters is the price at the time when you are present in the shop, because
that is the time when the deal is concluded.

And Allah knows
best.