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Sahih Muslim 1590a (Book 22, Hadith 112) #11189
Buying Gold & Silver

SUMMARY: The Prophet Muhammad (peace be upon him) forbade the sale of gold for gold and silver for silver except when it is equal in value, and commanded people to buy silver for gold or vice versa as desired. Payment must be made on the spot.

Abd al-Rabman b. Abia Bakra reported on the authority of his father that Allah's Messenger forbade the sale of gold for gold, and silver for silver except equal for equal, and commanded us to buy silver for gold as we desired and buy gold for silver as we desired. A person asked him (about the nature of payment), whereupon he said: It is to be made on the spot. This is what I heard (from Allah's Messenger (may peace be upon him ).
حَدَّثَنَا أَبُو الرَّبِيعِ الْعَتَكِيُّ، حَدَّثَنَا عَبَّادُ بْنُ الْعَوَّامِ، أَخْبَرَنَا يَحْيَى بْنُ أَبِي إِسْحَاقَ، حَدَّثَنَا عَبْدُ الرَّحْمَنِ بْنُ أَبِي بَكْرَةَ، عَنْ أَبِيهِ، قَالَ نَهَى رَسُولُ اللَّهِ عَنِ الْفِضَّةِ بِالْفِضَّةِ وَالذَّهَبِ بِالذَّهَبِ إِلاَّ سَوَاءً بِسَوَاءٍ وَأَمَرَنَا أَنْ نَشْتَرِيَ الْفِضَّةَ بِالذَّهَبِ كَيْفَ شِئْنَا وَنَشْتَرِيَ الذَّهَبَ بِالْفِضَّةِ كَيْفَ شِئْنَا ‏.‏ قَالَ فَسَأَلَهُ رَجُلٌ فَقَالَ يَدًا بِيَدٍ فَقَالَ هَكَذَا سَمِعْتُ

TOPICS
trade  *  gold  *  silver  *  exchange  *  payment  *  tijarah  *  thahab  *  fiddah  *  istisqa  *  alhassan

QUICK LESSONS:
Be fair in your trades by exchanging items equally valuable; buy either gold or silver as desired; pay immediately after a transaction has been completed.

EXPLANATIONS:
This hadith teaches us about the importance of fairness in trade. The Prophet Muhammad ﷺ forbade trading gold with gold or silver with silver unless it was equal in value, meaning that one should not take advantage of someone else by trading something worth more than what they are receiving. He also commanded people to buy either gold or silver as desired, meaning that one can choose which item they would like to purchase depending on their needs and preferences. Lastly, he stated that payment must be made on the spot, meaning that payment should not be delayed but rather paid immediately after a transaction has been completed. These teachings emphasize fairness and honesty in trade which is an important part of Islamic values and ethics.

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