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Is iShares Physical Gold ETC (SGLN / IGLN) halal?
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Short answer
iShares Physical Gold ETC (LSE tickers SGLN in USD, IGLN in GBP) is backed 100% by allocated gold bars held in vault. Each share represents a specific claim on physical gold. Contemporary scholars generally permit allocated physical gold ETFs and ETCs when purchased outright without margin, since the ownership structure meets qabd (constructive possession).
The reasoning
The ETC is fully allocated — every share corresponds to a specific bar, not a paper claim on a pool. This is materially different from unallocated 'paper gold' products.
Buying on a cash account with T+2 settlement is widely accepted by contemporary Shariah scholars as satisfying the hand-to-hand requirement for exchanging gold (a ribawi commodity).
Conditions
- Buy on a cash account — no margin, no securities lending opt-in.
- Confirm the specific product is the allocated ETC (SGLN/IGLN), not an unallocated tracker.
- Settle T+2 in the standard way; avoid CFD or spread-bet wrappers on the same ticker.
Red flags
- Unallocated gold funds
- Gold ETFs held via CFD or spread-bet
- Margin or short positions on SGLN/IGLN
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