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Sunan an-Nasai 4579 (Book 44, Hadith 131) #19112
Exchange of Gold and Silver

SUMMARY: The Prophet Muhammad (PBUH) forbade selling silver for silver or gold for gold unless it was of equal amounts, but allowed exchanging gold for silver and vice versa.

It was narrated from 'Abdur-Rahman bin Abi Bakrah that his father said: "The Messenger of Allah forbade us from selling silver for silver unless it was of equal amounts, or selling gold for gold unless it was of equal amounts. The messenger of Allah said: 'Sell gold for silver however you want, and silver for gold however you want"'.
أَخْبَرَنَا مُحَمَّدُ بْنُ يَحْيَى بْنِ مُحَمَّدِ بْنِ كَثِيرٍ الْحَرَّانِيُّ، قَالَ حَدَّثَنَا أَبُو تَوْبَةَ، قَالَ حَدَّثَنَا مُعَاوِيَةُ بْنُ سَلاَّمٍ، عَنْ يَحْيَى بْنِ أَبِي كَثِيرٍ، عَنْ عَبْدِ الرَّحْمَنِ بْنِ أَبِي بَكْرَةَ، عَنْ أَبِيهِ، قَالَ نَهَانَا رَسُولُ اللَّهِ أَنْ نَبِيعَ الْفِضَّةَ بِالْفِضَّةِ إِلاَّ عَيْنًا بِعَيْنٍ سَوَاءً بِسَوَاءٍ وَلاَ نَبِيعَ الذَّهَبَ بِالذَّهَبِ إِلاَّ عَيْنًا بِعَيْنٍ سَوَاءً بِسَوَاءٍ قَالَ رَسُولُ اللَّهِ ‏ "‏ تَبَايَعُوا الذَّهَبَ بِالْفِضَّةِ كَيْفَ شِئْتُمْ وَالْفِضَّةَ بِالذَّهَبِ كَيْفَ شِئْتُمْ

TOPICS
exchange  *  silver  *  gold  *  amounts  *  tawariq  *  fidda  *  dhahab  *  musawamah

QUICK LESSONS:
Trade fairly with others by offering an equal amount in exchange

EXPLANATIONS:
This hadith is about the exchange of gold and silver. The Prophet Muhammad ﷺ forbade selling silver for silver or gold for gold unless it was of equal amounts, but allowed exchanging one metal with the other. This means that if someone wants to buy a certain amount of either metal, they can pay in either metal as long as the amount is equal. For example, if someone wants to buy 10 grams of gold they can pay 10 grams worth in either gold or silver depending on what they have available. This hadith teaches us that we should be fair when trading goods with each other and not take advantage by offering unequal amounts in exchange.

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