Selling Gold in Installments Declared Haram

Is selling gold in installments allowed in Islam? According to prominent scholar Sheikh Abdullah Al-Manea and other Islamic jurists, the answer is no. This practice is considered haram due to its link to riba (usury), which is strictly forbidden in Shariah.

The ruling focuses on the immediate exchange of gold and payment. Delaying either part of the transaction falls under riba annasee’ah, a form of interest that Islam prohibits.

Why Gold Installment Sales Are Prohibited?

Immediate Exchange Avoids Riba.

In Islam, gold transactions require both the item and payment to be exchanged on the spot. Selling gold with delayed payments (installments) or delayed delivery creates an imbalance. This imbalance is seen as riba annasee’ah—charging extra for waiting, which is unfair and exploitative.

For example, if you sell gold today but accept payment over months, the buyer effectively pays more due to the delay. Shariah demands fairness: hand over the gold and receive full payment instantly to prevent hidden interest.

Evidence

• Sheikh Abdullah Al-Manea: Member of Saudi Arabia’s Council of Senior Scholars, states installment sales of gold are haram.
• Council of Senior Scholars: Supports the ruling, linking delayed payments to riba.
• Classic Jurists: Historically ruled gold must be exchanged immediately—no credit or installments.

Sheikh Al-Manea’s statement clarifies that gold cannot be sold with delayed payments, as this mirrors interest-based lending. The Council of Senior Scholars reinforces this, citing Quranic bans on riba. Earlier jurists, like those in the Hanafi and Maliki schools, also mandated instant payment and delivery to ensure fairness.

Bottom Line

Selling gold in installments is haram because it introduces riba into transactions. Islam requires immediate exchange of gold and payment to ensure fairness and avoid exploitation.

Muslims must follow this ruling to stay compliant with Shariah. Always prioritize instant payments and consult scholars for complex deals.

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