Is It Permissible to Buy Gold Jewelry Remotely Using a Pre-Deposited Amana Balance?
Shafi'i Fiqh
Answered by Shaykh Muhammad Carr
Question
Is it permissible to have gold jewelry manufactured abroad, maintain a cash amana with the factory, and conduct spot transactions by phone in which the factory completes the items, calculates the gold price and associated charges, immediately deducts the amount from my amana, issues an invoice, and sets the paid items aside?
Answer
In the Name of Allah, the Most Merciful and Compassionate.
Thank you for your question. May Allah reward you for ensuring that your income is permissible.
The arrangement above largely meets the requirements of Islamic Law for purchasing gold and is therefore considered valid and permissible.
Appointing an Agent (Wakala)
You should appoint a third party – that is, someone other than the seller – as your agent to hand over the funds on your behalf, according to the view commonly followed in the Shafi’i School. Appointing the seller to represent you as the buyer results in one person representing both contracting parties, which is generally impermissible. However, if appointing a third party is not feasible or causes undue hardship, you may follow the view of Ibn Rif’a without hesitation. Ibn Rif’a holds that it is permissible for one person to represent both contracting parties when the possibility of suspicion or aspersions is eliminated [Dimyati, al-I‘ana]
The Conditions for Buying Gold
The Prophet (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]
Thus, if gold is exchanged for a currency, their amounts may differ, but the following conditions are obligatory: (a) that the exchange be immediate; (b) that the properties exchanged must be in the respective possession of the buyer and seller before they part company. [Misri, ‘Umdat Al-Salik]
In your case, the above is facilitated by the agency agreement (wakala).
And Allah knows best.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani
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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 to 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‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.
