Q: I have recently heard of a new venture many of our Muslims are going into, it is the trading of gold on the forex market. I wanted to find out if it is permissible and if so then how, as no physical exchange of ownership takes place, and also if you own an item although it can depreciate in value it won't cease to exist as is what happens on this gold market.
A: In order for the transaction to be valid, it is a precondition that one be able to take possession of the sale commodity. If one is unable to take possession of the sale commodity, the transaction will not be valid and will not be permissible. Hence, since it is not possible for you to take possession of the gold, this transaction is not permissible and is against shariah.
And Allah Ta'ala (الله تعالى) knows best.
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