Ruling on Buying Gold with Uncollected Checks

Answered according to Shafi'i Fiqh by Darul Iftaa Jordan
What is the ruling of Sharia on buying gold with uncollected checks?

All perfect praise be to Allah, The Lord of the Worlds, and may His peace and blessings be upon our Prophet Mohammad and upon all his family and companions. The Law-Maker forbids selling gold or silver in return for uncollected checks as this is a form of Riba(Usury/interest) since this transaction isn`t done hand in hand in one session(i.e. in the same sale contract). Moreover, money and gold are forms of payment, which is the I`llah(Effective case) of Riba. In conclusion, it is forbidden to sell gold for uncollected checks except if the exchange is from hand to hand in one session. The Prophet(PBUH) said, "The selling of gold for gold is Riba (usury) except if the exchange is from hand to hand and equal in amount," {Agreed upon} ."Hand in hand" means it is forbidden to delay the payment of any. And Allah knows best.

This answer was collected from the official government Iftaa Department of Jordan.

Find more answers indexed from: Darul Iftaa Jordan
Read more answers with similar topics: