Before you hand over cash for melted gold, check four simple things that decide whether the deal is religiously acceptable — or not.
Determining the sharia ruling on transactions in melted gold depends on the transaction’s conditions and details, and it requires careful review by a qualified religious authority.
Rulings on transactions of melted gold
Generally speaking, within Islam the buying and selling of gold as an investment or as a commercial good is permissible. Melted gold is treated like other forms of gold and therefore falls under the same sharia rules that govern gold trade.
Points to consider:
Source of the gold: The gold offered for sale should have been acquired by lawful and permissible means.
Riba (usury): The transaction must be free from riba — there should be no illicit or usurious increase built into the price.
Fraud / Adulteration: The gold must not be impure, counterfeit, or otherwise deceitful.
Intention: The parties’ intentions should be legitimate and free from malicious or exploitative motives.
Transactions in melted gold
It is recommended that:
To ensure the transaction is permissible, consult a qualified religious authority or a specialist in Islamic jurisprudence.
Avoid buying or selling gold through unreliable or suspicious sources.
Check gold prices in reputable markets before completing the deal.
If you intend to invest in gold, prefer sharia-compliant methods and secure forms of ownership, such as purchasing gold coins or certified bullion bars. Standards and guidance for sharia-compliant gold investments (for example spot trading and clearly allocated ownership) are available from recognized Islamic finance sources.
