Gold, Silver and Money

Q: I want to know about forex trading in gold usoil or currencies? What are Islamic teachings and what should be avoided? If the broker is paid directly and dollars are given back directly within that time, is it permissible?

Q: Is using paper currency In accordance with sharia and is it permissible?

Hence the world trade currency is not based of any tangible asset such as gold or silver.

The federal reserve prints USD without any backing then using it to provide loans to poor countries in exchange for services and goods. It also gives Central Banks control over the economy and have control on how much is printed to who it is distributed to and is unjustly distributed.

They also use banking methods such as Riba and fractional banking which is haraam and is the backbone of their financial system.

Q: The day when I went to get a new ring, I told them if I can sell, I even asked if I want money I will get. So they wrote the amount of money for me of the old ring. So instead of taking the money from them I gave them more money and took another ring, now does this fall under riba?

Q: I am a collector and I collect banknotes from various countries. A few days ago, I bought a few foreign banknotes online from a website, I paid the amount and a few days later, the banknotes were delivered to me. Was this transaction haram as the purchase was not done hand to hand? And if it was haram, what am I required to do?

Q: Zaid sent a parcel of GBP in cash to Bakr, with the intention of selling it to him for ZAR. Bakr inspected the notes, because some of them were old, and they both agreed on an exchange rate.

After a few days, Zaid subsequently sent his agent to collect ZAR notes from Bakr. Bakr did not give the entire amount. After a week, Bakr made an EFT of the remaining amount in ZAR.

(1) What is the status of the ZAR notes received from Bakr? If the money is haraam, what should be done with the money?

(2) What is the status of the money received via EFT from Bakr? If the money is haraam, what should be done with the money?

Q: I went to a jeweller with some items of old gold jewellery to to get new jewellery. He gave me 2 options:

1. He melts the old jewellery and makes new ones and I pay him for his labour.

2. If there is some piece of jewellery which I like, we can swop the both.

I told him give me some time to decide. In the meantime, he sent me a picture of an item which was also gold which I liked, so I told him to please keep it for me and I will come to his office and we'll make the deal.

When I finally go there, he informs me that in order to keep that item for me, he had to swop my jewellery for it. This was done without first asking me and without my permission. So now my jewellery is gone and he tells me I must take the new item. I asked him regarding the difference in weights of the two as both were gold. His reply was "the difference was very small, don't worry about it".

My problem is that I understand that him doing that straight swop was not permissible according to shariah as gold for gold must be exact and even a "small difference" is not permissible. But now my jewellery is gone and cannot be retrieved, and I'm left with no option but to take this new item. What do I do in this situation? Will I be sinful for taking this item knowing that he got it through a riba transaction? And if I don't take it, I will lose out as he wouldn't pay me for my gold.

Also, with regard to the difference in the weights, I don't even know which was more or less as he wouldn't tell me clearly (although it seems to me that mine was the more).

Q: My father has exchanged money, but it was not simultaneous. So, the transaction was haraam. But what about the money? My father has exchanged 10,000 SEK to different currency. So will the whole 10,000 SEK of my father be haraam? If so, how can we make it halaal?

If I tell my father to return the money to the other party, he is not going to listen me.

Q: FNB offer a service where one can invest in Kruger Rand gold coins through them. They then store it for you at a fee of 0.86%pa.

-If one wants to sell the coin back to them, its done at the click of a button.
-If one wants the physical coin, they can arrange for it to be delivered to you at a cost.
-Prior to requesting the coin, I'm not sure if they keep the physical coin or not.

Please advise if it will be permissible to purchase a coin through them in this manner.

Q: I have R1000 worth of R100 notes. However, these are the old notes and I want to change them for the new R100 notes. The agent said that he will change the old notes for the new notes, but he will charge me R10. Is this permissible?

Q: If one wishes to buy gold coins or gold jewellery, then what are the conditions for the transaction to be valid? Are there any particular masaa’il related to this?