QUESTION:
A brother in Singapore wants to purchase gold as a stable investment. Due to the difficulty of storing such a valuable commodity, the seller offers the option to purchase the gold, while the seller still retains physical possession of the gold. The buyer does not get physical possession of the gold. Rather, he is issued a certificate stating that the buyer is the owner of the purchased amount. This also makes it easier to sell the gold when required, according to the current market price. Is this type of transaction permissible?
ANSWER:
After selling the gold to the buyer, the buyer should appoint someone to take possession of the gold on his behalf, and thereafter hand the gold over to the seller for safekeeping. The gold will be kept as Amaanat for the buyer. However, if the physical gold is not available, and only a certificate is issued then the transaction will not be permitted.
ALLAH TA’ALA ALONE KNOWS BEST!
ANSWERED BY:
Mufti Mohamed Desai
Date: 17 Ramadaan 1445 / 28 March 2024
