For some reasons, gold can be considered as good investment. Investors usually invest in gold to hedge against inflation, and due to its scarcity, it is expected to keep its value. Gold, along with other investment, such as stocks and sukuk, can help diversify an investor’s portfolio. Is online gold trading halal in Islam? Trading gold is permissible (halal) in Islam, and it can be traded both online and offline. However, the transaction must meet two requirements:
- It should be on a cash basis. The price must be paid to the seller immediately.
- The exchange of gold should be made on the spot. The seller must immediately deliver the gold to the buyer or the authorised person to accept it on his behalf.
In trading gold online, the internet company works as a wakeel (agent) to trade on the buyer’s behalf. This means that buyer gives the authority to the online company to trade on his behalf. In this case, the buyer pays the fee to the agent (wakalah or agency fee). The agent must receive the gold and either send it to the buyer or hold it as a trust. The agent cannot make any transaction without consent from the buyer.
As gold is one of the Ribawi items, the investors should carefully select the Shariah-compliant way of investment. There are several ways to invest in gold online in the halal way:
Gold Backed ETFs (Exchange Traded Funds)
Gold-backed ETFs allow investors to monitor the price of gold in general, allowing them to benefit from the characteristics and security of holding physical gold without having to worry about storage and insurance. These gold-backed funds aim to combine the convenience and flexibility of stock-market trading with the advantages of owning actual gold. Investors can buy shares of gold-backed ETFs like stocks on a stock market, keep them in a securities custody account, and sell them at a reasonable cost when they choose.
Note: Muslim investors should check the Shariah-compliance of a specific ETF before investing.
Internet Investment Gold
Through Internet Investment Gold (IIG), investors can buy physical gold online and have it stored professionally on behalf of investors. Over the last decade, the landscape of such products has changed dramatically, with the major providers now holding billions of dollars in gold on behalf of investors.
Gold Mining Stock
The stock of gold mining firms is available for purchase by investors. The stock prices of gold mining companies may have a relationship with the price of gold. However, not only the value of gold but the company’s expected future earnings are also one of the factors in determining the stock’s growth and return. Other factors that affect the gold mining stock such as effective management, production costs, reserves, mine exploration and project development, and other activities. Investment in gold mining firms is usually used as a complementary investment.
Note: Muslim investors should check the Shariah-compliance of a specific stock before investing.
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FAQs
Trading gold is permissible (halal) in Islam, and it can be traded both online and offline.
Is it halal to trade gold online? ›
Over the years, there has been an increasing trend in gold investment, particularly among new investors. Gold trading is permissible (halal) in Islam. But, before trading the gold, every Muslim should know that gold is one of the Ribawi items. It means Muslims cannot trade it for future profit or speculation.
Is Musaffa halal? ›
Musaffa is proud to be your foremost Halal investment partner. We prioritize your journey with us and strive to provide you with the best experience possible.
Can Muslims trade xauusd? ›
XAUUSD trading involves exchanging one currency for another, which goes against the teachings of Islam. The speculative nature of forex markets and the potential for excessive risk-taking make it haram.
Is online trading halal in Islam? ›
That is called physical forex trading and is allowed in Islam. However, it is different from online forex trading. In online trading, the trader owns and does not withdraw the money. This is not allowed because it contains gharar (uncertainty) since we do not hold real money just like in physical forex trading.
Can you trade gold online? ›
Online trading platforms have made it easier for investors to engage in gold trading. Here's how you can get started: Choose a reliable trading platform: Look for trustworthy platforms regulated by the Securities and Exchange Board of India (SEBI).
Can we trade gold online? ›
Gold trading is a method of speculating on the price of gold online via spot prices, futures, options, shares and exchange traded funds (ETFs). Trading via CFDs means you don't have to take ownership or delivery of the commodity.
Is the Musaffa app legit? ›
Musaffa is a Halal (Shariah-compliant) Stock Trading, Investment, and Islamic Finance Education platform.
Which trading is halal in Islam? ›
On the other hand, forex trading is deemed halal in Islam when transactions are conducted on a spot basis with immediate settlement, avoiding interest, ensuring actual ownership, and utilizing swap-free accounts to comply with Islamic finance principles.
Which platform is halal for trading? ›
Musaffa: Halal Stock & ETF screening and investing app.
The nisab is the minimum amount of wealth a Muslim must possess before they become eligible to pay Zakat. This amount is often referred to as the nisab threshold. Gold and silver are the two values used to calculate the nisab threshold. The nisab is the value of 87.48 grams of gold or 612.36 grams of silver.
Is goldbees halal? ›
But being Sharia-compliant these are forbidden. The only other alternative Halal Investment idea is gold bees.
Is trading gold considered forex? ›
In forex trading, gold is a popular commodity that traders can speculate on as part of their currency trading activities. It is typically traded against major currencies, such as the US Dollar (XAU/USD) and the Euro (XAU/EUR), among others.
Is dropshipping haram? ›
Some scholars argue that dropshipping can be considered halal as long as the seller adheres to the principles of honesty, transparency, and fairness. Others express concerns about the potential for deceptive practices and lack of ownership, which could render it haram.
Can I do trading in Islam? ›
Buying stocks of companies which are classified as Shariah compliant is permissible from an Islamic perspective. There is widespread consensus among Shariah scholars for the same. Hence, trading in Shariah compliant stocks is considered as a halal source of income.
Can Muslims invest in trading? ›
Buying stocks is not haram in general. As long as the company's shares are per Shariah principles, Muslims can invest in that stock. When you are a stock owner, you own a small percentage of the business. However, it is essential that you need to make sure the company in question is aligned with Shariah rules.
Which company is halal for trading? ›
List of Halal Stocks in India by Market Capitalization
| Company Name | Ticker | Shariah-Compliance Status |
|---|
| Hindustan Zinc Ltd | HINDZINC.NS | Halal |
| Pidilite Industries Ltd | PIDILITIND.NS | Halal |
| Britannia Industries Ltd | BRITANNIA.NS | Halal |
| Godrej Consumer Products Ltd | GODREJCP.NS | Halal |
11 more rowsOf course, if it's gold, it's forbidden as gold. But other than that, it's all. the scholars have put it between discouraged. or forbidden. Any jewelry except a ring, because the Quran is talked about all jewelry.
Can I buy and sell digital gold? ›
The minimum amount of investment in digital gold is Rs 1 and can be purchased only from MMTC-PAMP, SafeGold, and Augmont Gold or their agents and brokers. All the digital platforms that sell digital gold have tied up with one of these companies. They allow you to buy, sell, or exchange digital gold with physical gold.
Is it fine to buy gold online? ›
Absolutely! Buying gold jewellery online is perfectly safe, thanks to online jewellers like CaratLane, who are setting impressive benchmarks. They provide a wide variety of designs and assure their customers of authenticity, utmost transparency, and high standards of trust.
