Q 4: There are
some people who buy gold pounds or bars when the price of gold goes down and they sell them when the price rises.
What is the ruling on this matter? Is Zakah due on this gold if a lunar year passes while it is in one's possession? It should be taken into consideration that over the year, the price of gold is not constant, as it may increase or decrease according to the market.
A: Firstly,
(Part No. 13; Page No. 469) it is permissible to buy gold pounds or bars in return for gold objects so long as both are exchanged at the time of sale, just as it is permissible to buy gold in exchange for cash money. It is permissible to buy gold when its price goes down and to wait to sell it until its price rises as long as one does not buy up too much a quantity that it creates a monopoly or causes harm to people.
Secondly:
Zakah is due on the gold if a year passes while it is in one's possession and if the amount reaches the Nisab (the minimum amount on which Zakah is due).
May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.
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