In the auspices of this blessed occasion, let me share my thoughts on the aforementioned products to the Public Gold members (staff, dealers and customers) and the readers at large so that all of us can truly understand and appreciate the Shariah compliance of these products to the best extent.
As we all would know, cornerstone condition of a gold involved sale (among others) is that, the exchange of gold and the payment must be on spot basis, i.e. immediately right after the AKAD.
In order to identify and eliminate the element of delay in such transactions, it is extremely important to determine the actual point of AKAD.
For this, let us consider the above real life examples, as Shariah rulling must be derived from an actual case and must be made from the right perspective.
1 - OUTRIGHT PURCHASE:
The key transaction steps are :
- Locking in the price : This is not an AKAD. It is merely promise from the buyer to buy a specific gold item at certain price.
- Payment: This is also not an AKAD. The payment is a form of security deposit and commitment of the buyer to execute the transaction.
- Collection of the physical gold: This is where the AKAD is done. The physical gold and the payment (in the form of a security deposit paid earlier) are be exchanged on spot basis. Effectively ensuring, no element of delay is involved in the transaction.
2 - PURCHASE AGAINST PAYMENT IN INSTALMENTS
The key steps in this type of sale are:
- Locking in the price: This is not an AKAD. It is merely promise from the buyer to buy a specific gold item at certain price.
- Staged payment: This is also not an AKAD and the ownership of gold remains with Public Gold. The payments made are security deposit accumulated over time vis-à-vis commitment of the buyer to execute the transaction in the future.
- Collection of the physical gold: The buyer may collect the physical gold once all the scheduled payments are in order. The AKAD takes place at this stage. Spot exchange of gold and the payment (in the form of a security deposit paid earlier). Effectively taking the element of delay out of the transaction.
3 - BUY BACK:
The key transaction steps here include:
- Locking in the price : This is not an AKAD. It is merely promise from the seller to sell a specific gold item at certain price.
- Surrendering the physical gold : This is also not an AKAD. The gold is a form of security deposit and commitment of the seller to execute the transaction.
- Payment via bank transfer : The AKAD takes place at this stage. The payment is exchanged against the gold (surrendered earlier as a security deposit) on spot basis. Again we observe no element of delay in this transaction as well.
4 - GOLD ACCUMULATION PROGRAM & SILVER ACCUMULATION PROGRAM:
The key transaction steps include:
- The buyer transfers a certain amount of money to a Public Gold account as a jiddiyyah (security deposit).
- Public Gold will record the exact amount of money and grams in the buyer's account (the sale and purchase agreement is currently in effect).
- Buyers have the option of withdrawing their gold or leaving it in the account maintained by Public Gold at no charge.
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I hope this information will clear some doubts you may have with regards to physical gold trading with Public Gold.
I am personally very passionate to see the #ShariahMind on the outcome especially when it involves such contemporary products and services such as #GoldAccumulationProgram#GAP, trade-in, #PGMall #GoldPaymentSystem#GoldCash and others.
Credit to Ustaz #KhairulAnuarBasri
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