Commodity
Is Physical gold halal?
Permissible
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Short answer
Gold is a ribawi commodity and must be exchanged hand-to-hand for money. Physical bullion bought and delivered, or held in an allocated vault account in your name, satisfies the requirement.
The reasoning
The classical rule from the hadith of ribawi exchange requires gold-for-money trades to settle in the same sitting. Modern T+1 or T+2 settlement of allocated physical purchases is widely accepted by contemporary scholars as meeting this condition.
The key word is allocated. The bars must be specific to you, not a pooled obligation of the dealer or bank.
Conditions
- Cash payment, no financing.
- Allocated holdings — specific bars, not a paper claim.
- Settle promptly; avoid forward dating.
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