Can Valid Silver Coin Be Sold Above Face Value?
Shafi'i Fiqh
Answered by Shaykh Muhammad Carr
Question
Is it permissible to sell a silver coin still valid for circulation for more than its face value due to its silver content?
Answer
Selling a coin for more than its face value on account of its silver content is permissible when the transaction involves gold or any other currency.
Where a silver coin is exchanged for another silver coin, however, equivalence in weight is required. These rules apply whether the coin is in circulation or not.
Buying and Selling Silver
Where a silver coin is exchanged for gold or another currency, the amounts may differ, but two conditions are obligatory: (a) the exchange must be immediate; and (b) both items must pass into the respective possession of each party before they part.
Where the exchange is between commodities of the same kind, equivalence in measure is required in addition to the above conditions. [Misri, Umdat al-Salik]
The Prophet (may Allah bless him and give him peace) said: “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, and salt for salt – like for like, equal for equal, and hand-to-hand; if the commodities differ, then you may sell as you wish, provided that the exchange is hand-to-hand.” [Muslim, Tirmidhi]
Trade with Allah-consciousness. In doing so, your worldly engagement is transformed into an act of worship, and what appears to be immersion in the world becomes, almost paradoxically, a form of asceticism.
I pray this is of benefit and Allah guides us all.
Allah knows best
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani
Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door for students. As an imam, he has the unique opportunity to serve his community in daily life.
In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari’ah Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.
