The Egyptian Fatwa House has revealed the ruling on the installment sale of gold and silver jewelry in Islam, especially when sold at a price higher than the original. They confirmed in their fatwa that gold and silver are commodities in the commercial market, which removes the conditions of equivalence, immediate delivery, and hand-to-hand payment in the council. Thus, selling them at a higher price in installments is permissible according to Islamic law.
It is established in fatwa that gold and silver jewelry have become commodities in the commercial market and not currency, thereby eliminating the criteria relating to currency that necessitate equivalence and the conditions for immediate delivery and hand-to-hand payment.
The Egyptian Fatwa House stated regarding the installment sale of gold jewelry at an increased price: "Selling gold and silver jewelry in installments at a higher price than the original is established in fatwa that they have become commodities in the commercial market and not currency, which removes the rationale for currency that necessitates the conditions of equivalency and the conditions for immediate delivery and hand-to-hand payment."
The Fatwa House further clarified: "Selling them in installments for a price, either fully or partially deferred, with a suitable increase in price due to the agreed-upon deferred term at the time of contracting is permissible according to Islamic law; because it is valid to sell at an immediate price and at a deferred price for a known term, and the specified increase in price in consideration of the known term is permissible according to Islamic law."
Earlier, the Gold, Jewelry, and Precious Metals Division of the Egyptian Metal Industries Chamber had issued a statement on Thursday in response to the significant increase in gold prices over recent days.
