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02-18-2009, 12:53 PM
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#1 |
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 Online Gold Trading - Halaal or harram
BismillahirrahmanirRaheem
Asalam Alaikum Dear All I need to know if the following is Halaal and consider a trading or is it Haraam. Please note that i've searched many places and their is no definite answer to this. Here's how it works There are two forms 1. Actual Gold Trading 2. e-Gold or paper Gold E-Gold ===== Price comes from the actual trading of real Gold but no matter how much we own, its just paper money. We cannot get any physical Gold from the bank. Hadiths only allow hand to hand, on the spot trade. Actual Gold ======== Banks offering Actual Gold trading. This means that i buy Gold online, through my bank account. Bank will keep the actual Gold and this Gold is available to me on demand. Bank will act as a keeper. Buying, 'apparently' is without interest/usury. Bank offers spot rates for selling which is slightly higher than its buying price. just like currency. Let say the selling rate today is $963/oz and their buying rate is $962/oz. there is no other fee or anything else involved. I buy at $963. In the evening, the rate may become $970 or $960. It is up to me to sell it back to my bank. Now if I want to get hold of the actual gold, i have to inform my bank. bank will ask me to submit a form in which i tell the bank at which branch i need the actual gold. I'll go there, and get hold of it. My question is IS THIS a Gold Trading or Is it Gambling? I urgently need a reply. if you have access to any knowledable Imam/ Sheikh/ Sufi Master, please help me get this reply. May Allah reward your efforts Best Wishes Asalam Alaikum |
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02-18-2009, 02:26 PM
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#2 |
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Wa alaikum salaam wa rahmatullah,
Buying physical gold through your bank is permissible. It may be kept in their vaults without any issue: http://qa.sunnipath.com/issue_view.a...ID=346&CATE=43 When buying into gold based ETFs (paper gold) one will need to avoid all types of leveraged funds (the ones which promise to pay 200% the daily return for instance), since achieving this amplified return (and loss) means other money is added to what the buyer of the ETF puts in. This additional money will involve payment of interest. and Allah knows best. |
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02-18-2009, 02:43 PM
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#3 |
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JazakAllah khair, that is really good advice as I am also looking into buying gold as well.
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08-30-2011, 02:54 AM
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#4 |
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Assalam-u-Alaikum!
Which Bank is doing so. I also looking for online Islamic gold trading. |
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08-30-2011, 05:37 AM
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#5 |
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Asalamwailkum, Mufti "Instructor" offers excellent advice and i wont add to it.
Purely for information purposes i've written the following below about ETFs The Economist magazine states currently that if everyone was to try to 'cash in' their gold via ETFs, the market would crash because there is not enough gold to back the banks. Basically they dont "actually" have the gold. They have some gold, and they're relying on not everyone claiming their gold at once. http://www.economist.com/node/18864254 A linked problem is the tendency for ETFs to be the main way in which investors seek exposure to some asset classes, notably gold. Once upon a time gold bulls had to pay a hefty markup to buy coins or had to purchase shares in gold-mining companies and hope that the management was competent. But gold ETFs have been hugely popular, seeing inflows of $12 billion in 2009 and $9 billion in 2010. The largest gold ETF holds more bullion than all the world’s central banks except those of America, France, Germany and Italy. The IMF also has more. The surge of interest in gold ETFs has been encouraged by (and may have in turn contributed to) a rise in the bullion price. If investors lose faith, the market may become disorderly as they scramble to take their profits. That's just ONE etf, combined it's more buillion than exists. |
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08-30-2011, 09:45 AM
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#6 |
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I was wondering how paper gold can be permissible since you are only buying the price and no actual gold is available at the fund? This is supposed to be NOT permissible unless the ETF is actually holding gold to back the fund.
Can someone please comment. |
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08-30-2011, 01:12 PM
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#7 |
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With gold there must be Taqaabodh, which means you pay and recieve what you paid for at the same time. Otherwise its haram. As for margin trading, although little study has been done, most consider it haram based mostly on the rule "Kolla Qardhin Jarra Naf'an Fahowa Riba" meaning "every loan, that brings along benefit, is riba".
Ive read some traders argue that sometimes theres cases, where theres three parties, the brokrage firm, a third part offering the extra money, and you. So the one giving the loan is not the broker, and they say that many dont know this etc, but they were professional traders and not scholars at all. Theres also the issue of fees added if you dont sell the same day and keep what you own overnight. I think more research by scholars should be done on this issue. That said, I dont see how gambling can be a part of it. All businesses have some sort of risks, but this doesnt make owning a business, or buying and selling a commodity gambling. So im not sure I understood the question, what exactly do you think may be gambling, that you're asking about? The stock market for instance, isnt gambling, and that, scholars have confirmed. Some also say insurance also is a form of gambling. Some say its Riba. Im not convinced of any of this at all and see no relevant evidence provided. But thats a whole other topic. |
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01-22-2012, 04:21 PM
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#8 |
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Assalamu Alaikum.
Does anyone have some info on VGMC? It's also a gold mining company. I was recently introduced to it and I consider becoming one of it's share holders. You can perform an instant transaction online and the gold you get can be converted into credit which is then transferred to your bank account. |
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