Dear Respected Scholars,
I am thinking of buying/investing in Gold through the following company on the internet and wanted to check whether doing so would be according to Shariah. Below is some information about the company and their web-site address. I would be grateful for your answer.
Jazakallah.
http://www.bullionvault.com/
BullionVault is an internet gold bullion exchange and physical storage provider, founded in 2005 by Paul Tustain. It is owned by Galmarley Ltd and based in London, United Kingdom. Purchased gold is held in personally allocated storage with Via Mat International in either London, New York or Zurich depending on the client’s preference. BullionVault’s commission charges range from 0.8% to 0.02% and its custody charge (or gold storage fee) is 0.12% per annum, with a $4 monthly minimum charge.[
Clients of BullionVault hold their gold in vaults controlled by BullionVault, thereby creating a legal bailment. This is different from most other online gold facilities, which purport to create a digital gold currency.
BullionVault enables users to buy and sell their gold at prices set by them, ensuring an open and competitive 24/7 market. To prevent money laundering BullionVault asks new clients to provide proof of identity and address. Also unlike digital gold currency, they do not allow the direct transfer of gold units between user accounts unless they are sold via the exchange facility. This contrasts with digital gold currency which may act as electronic money. BullionVault also undertakes a daily audit to reconcile every client’s holdings against the latest bar lists and bank statements.
In the name of Allāh, Most Gracious, Most Merciful
Assalāmu ῾alaykum wa Rahmatullāhi Wabarakātuh
Kindly forward us the terms and conditions in the agreement between Bullion Vault (the seller) and the purchaser.
Also clarify:
1) Will the gold of different individuals be stored collectively or in separate vaults?
2) Can you purchase a fraction of a gold bar?
3) Can you take personal possession of the gold purchased or is it conditional that the gold will remain in their custody until sold.
Will the purchaser own the physical gold, or entitled to an allocated amount of gold in the vaults?
And Allāh Ta῾āla Knows Best
Wassalāmu ῾alaykum
Ml. Rayhaan Docrat,
Student Dārul Iftā
Checked and Approved by:
Mufti Ebrahim Desai
Dārul Iftā, Madrasah In῾āmiyyah