Question
Assalamualaikum warahmatullahi wabarakatuh
I’m interested in buying the Royal Canadian Mint gold stock (TSE: MNT) which is backed by physical gold in Ottawa, Canada, but they charge a service fee “accrued daily at an annual rate of 0.35%.” In light of this, is it halal for me to purchase this stock?
This website provides more details: https://www.reserves.mint.ca/Tsx_Gold/about/.
JazakAllah khair.
Answer
Most financial platforms, indices and ETFs charge a service fee for using their financial instruments. This particular ETR’s information document states:
The Mint will charge a Service Fee in respect of its management, storage and custodial services. The Service Fee will be calculated and accrued daily at an annual rate of 0.35% of the Per ETR Entitlement to Gold on each day of all outstanding ETRs and paid monthly in arrears on the 15th -2- day of each month (or if not a business day, on the next succeeding business day).
The fee is charged for a valid service and therefore, this would be permitted.[1]
[1] See Mufti Taqi Uthmani’s view on service charges and fees in: Contemporary Fatawa, 131-2.
Answered by:
Maulana Ikramul Hoque Miah
Checked & Approved by:
Mufti Abdul Rahman Mangera
Mufti Zubair Patel