Fadala bin 'Ubaid reported: We were in the company of Allah's Messenger ( may peace be upon him) on the day (of the Victory of) Khaibar, and made transaction with the Jews for the 'uqiya of gold for the dinars or three (gold coins), whereupon Allah's Messenger (ﷺ) said: Do not sell gold for gold but for equal weight
Related hadith on this topic
Explanation & Benefits
Shaykh Umar Farooq Saeedi
Benefits and Issues:
➊ When gold is exchanged for gold, or silver for silver, it is necessary that the weight be equal and the transaction be immediate (hand to hand).
➋ Otherwise, it will constitute usury (riba).
➌ In the case where gold is mixed with another substance, it should be separated.
➍ In mixed items, the correct weight of gold or silver cannot be determined until they are separated.
➎ After separating, the price of everything attached to the gold or silver will also be determined separately, and there will no longer be any possibility of usury (riba).
Source: Sunan Abu Dawood – Commentary by Shaykh Umar Farooq Saeedi, Page: 3353