Can you lend gold with the condition that the borrower will return gold, based on the value on the day of lending? For example, A lends to B two gold lingos worth £10,000 in total. On the day B returns the gold lingos, the value of the gold has changed, Now, to make up for [...]
We can classify the opinions of the scholars into 2 categories: It is not permissible to purchase allocated gold certificates. Even though the ownership of the gold is established through allocation, the mere certificate does not represent possession. This opinion is based on principles established by a group of traditional scholars. Proof: It is mentioned [...]
It is not permissible to buy unallocated gold or unallocated gold certificates. When buying an unallocated certificate, you are not taking a physical or constructive possession of the gold. There is no physical gold that is being allocated to your name (therefore no real ownership). In fact, the seller might not even have enough gold [...]
Can you exchange old gold with new gold? Ibn Abdi Bar reports that there is a scholarly consensus on the fact that gold can only be exchange with gold, if the amount is equal to equal and the gold is exchanged hand in hand. For example: A gives 100 grams of old gold to B [...]
Kafalah (guarantee) is assurance, its original meaning relates to joining and commitment. Technically Muslim jurists differed about the definition of guarantee. The majority of Hanafis defined it as joining the debts or material assets. The second definition of theirs: joining the liability of the warrant or to the liability of the principal for a debt. 1 Guarantees [...]
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