Topics: Islamic Finance

Is Investing in Gold Cards a Permissible Business in Islam?

Understanding the Permissibility of Gold Card Investments

Question: We bought 50 grams of gold at today’s rate from a company in the form of a gold card. When we return this 50 grams gold card to the company, they will pay us the amount according to the current rate, whether the gold rate is higher or lower than at the time of purchase. When we want to get our money back, we will give the card and receive the amount according to the current market price. The card is named after gold, but we do not receive gold, only money. It should be noted that the purpose of this gold card is not to buy gold but to save money. For example, if we have deposited 500,000 rupees with the company, they will issue a gold card equivalent to that amount, i.e., the number of grams of gold corresponding to that amount, as mentioned with the 50 grams. Is this type of business permissible?

Answer: The question clearly states that this is not a gold purchase but a way to save money, and earning profit by saving money in this manner is not permissible. This is essentially a usurious transaction because money is being deposited like a loan, and profit is being earned from this money, similar to earning interest on a loan. Even if this transaction is considered as buying and selling gold, it is still not permissible because deferred transactions are not allowed in gold trading; it must be a cash transaction. Here, money is being invested in the gold business through a gold card, which is also not permissible. In summary, this is a usurious transaction, which is prohibited for us. Therefore, Muslims should avoid such business dealings.

 Sheikh Maqbool Ahmed Salafi Hafizahullah

 ❪Jeddah Dawah Center, Hayy Al-Salamah – Saudi Arabia❫

Author: IslamicHelper

IslamicHelper

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