IslamQA.org Logo

Is it permissible to grade coins or is it gambling?

Answered according to Hanafi Fiqh by Askimam.org

Is it permissible to grade coins or is it gambling?

Answer

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Coin grading is defined as “The process of determining the grade or condition of a coin, one of the key factors in determining its value as a collector’s item. The grading of a coin includes the analysis of several criteria, the most important being the quality, the rarity, the interest factor, and the liquidity factor.”[1]

A grade is defined as “A shorthand devised by numismatists[2] to indicate the appearance of a coin. In other words, if one collector tells another that he has an About Uncirculated-50 Charlotte half eagle; both collectors should have an expectation of what the coin should look like, even if one has never seen it, due to the implications of its grade.”[3]

Every profession has a defined set of rules and codifications. Similarly, it is important that one applies the correct grading system such as the Sheldon Grading System, European Grading System, etc. when analyzing the grade of a coin. This is in conformance with correct and just business ethics and working practice.

If your question is in relation to the above definition of “Coin Grading”, then it would be permissible for one to grade coins like any other skill such as teaching, law, medicine, pharmacy, etc.

Kindly inform us if you are referring to another form of “Coin Grading”.

And Allah Ta’āla Knows Best

Moulana Ismail Desai,
Student Darul Iftaa
Durban, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

 


[1] http://en.wikipedia.org/wiki/Coin_grading, Last accessed at 29/08/2012.

[2] Numismatics is the study or collection of currency, including coins, tokens, paper money, and related objects. While numismatists are often characterized as students or collectors of coins, the discipline also includes the broader study of money and other payment media used to resolve debts and the exchange of goods, http://en.wikipedia.org/wiki/Numismatics, last accessed at 29/08/2012.

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

Find more answers indexed from: Askimam.org
Read more answers with similar topics: