❀ Islamic Ruling on Exchanging Old Gold for New Gold ❀
This ruling is taken from the book “500 Questions and Answers for Women,” based on the fatwas of the Scholars of the Ḥaramayn, translated by Ḥāfiẓ ʿAbdullāh Salīm.
A woman takes her old gold to the gold market and asks a jeweler to estimate its price. Once the jeweler does so, she says: “Give me new gold in exchange for the value of this old gold.”
Is there anything in this process that contradicts Islamic law?
This transaction is not permissible, as it constitutes gold-for-gold exchange (bayʿ al-dhahab bi al-dhahab) without ensuring equality in:
✔ Weight (وزن),
✔ Immediate exchange (یداً بید), and
✔ Exact equivalence (مثل بمثل).
The Prophet ﷺ said:
«الذَّهَبُ بِالذَّهَبِ مِثْلًا بِمِثْلٍ، سَوَاءً بِسَوَاءٍ، وَزْنًا بِوَزْنٍ، يَدًا بِيَدٍ، فَمَنْ زَادَ أَوِ اسْتَزَادَ فَقَدْ أَرْبَى»
[Ṣaḥīḥ Muslim]
"Gold for gold should be equal in weight, like for like, hand to hand (i.e., immediately). Whoever increases or asks for increase has engaged in usury (ribā).”
Since in such transactions the old gold is exchanged for a different quantity or form of new gold, this violates the conditions of equality and immediacy, making the deal usurious (ribā) and thus unlawful.
✔ The woman should sell her old gold for cash at the current market rate.
✔ Then, in a separate and independent transaction, she may use that cash to purchase new gold—either from the same jeweler or someone else.
This separates the two transactions and removes the element of ribā.
It is also permissible to buy gold using cash, silver currency, or commodities (e.g., coffee, cardamom, rice, sugar, fabric, etc.), whether the payment is immediate or deferred.
This is because ribā only applies when the exchange involves the same category of ribawī items (like gold for gold).
وَاللّٰهُ وَلِيُّ التَّوْفِيقِ
(Fatwa by: Shaykh Ibn Bāz رحمه الله)
This ruling is taken from the book “500 Questions and Answers for Women,” based on the fatwas of the Scholars of the Ḥaramayn, translated by Ḥāfiẓ ʿAbdullāh Salīm.
❖ Question:
A woman takes her old gold to the gold market and asks a jeweler to estimate its price. Once the jeweler does so, she says: “Give me new gold in exchange for the value of this old gold.”
Is there anything in this process that contradicts Islamic law?
❖ Answer:
This transaction is not permissible, as it constitutes gold-for-gold exchange (bayʿ al-dhahab bi al-dhahab) without ensuring equality in:
✔ Weight (وزن),
✔ Immediate exchange (یداً بید), and
✔ Exact equivalence (مثل بمثل).
The Prophet ﷺ said:
«الذَّهَبُ بِالذَّهَبِ مِثْلًا بِمِثْلٍ، سَوَاءً بِسَوَاءٍ، وَزْنًا بِوَزْنٍ، يَدًا بِيَدٍ، فَمَنْ زَادَ أَوِ اسْتَزَادَ فَقَدْ أَرْبَى»
[Ṣaḥīḥ Muslim]
"Gold for gold should be equal in weight, like for like, hand to hand (i.e., immediately). Whoever increases or asks for increase has engaged in usury (ribā).”
Since in such transactions the old gold is exchanged for a different quantity or form of new gold, this violates the conditions of equality and immediacy, making the deal usurious (ribā) and thus unlawful.
Permissible Method:
✔ The woman should sell her old gold for cash at the current market rate.
✔ Then, in a separate and independent transaction, she may use that cash to purchase new gold—either from the same jeweler or someone else.
This separates the two transactions and removes the element of ribā.
✔ Additional Permissible Method:
It is also permissible to buy gold using cash, silver currency, or commodities (e.g., coffee, cardamom, rice, sugar, fabric, etc.), whether the payment is immediate or deferred.
This is because ribā only applies when the exchange involves the same category of ribawī items (like gold for gold).
وَاللّٰهُ وَلِيُّ التَّوْفِيقِ
(Fatwa by: Shaykh Ibn Bāz رحمه الله)
