Fatwa on selling gold online
Question: Is it permissible to sell jewelry online by creating a website that displays jewelry and ornaments, which the customer purchases, and then sending the merchandise via mail?
The answer
Praise be to God, and may God’s prayers and peace be upon the Messenger of God.
Jewelry made of other than gold and silver may be sold online like all other goods and services. As for gold and silver jewelry, there is a difference of opinion as to whether it is considered a commodity or a price. The majority of jurists agree that jewelry is considered a commodity by the same ruling as dinars and dirhams, so it must be exchanged hand to hand. Sheikh al-Islam (may Allah have mercy on him) believes that jewelry is no longer considered a price due to its craftsmanship, so it is considered a commodity. However, he believes that if the buyer’s intention in buying jewelry is to buy it for a price, then it is subject to the rulings of exchange. Given the difficulty of determining the intentions of customers, and to be on the safe side when dealing with the general public online, the opinion of the majority should be taken.
Terms and Conditions for Selling Gold and Silver Online
- Selecting jewelry and completing the usual online purchase steps is a non-binding promise, not a contract.
- The ordering process involves the customer authorizing a shipping company to receive the jewelry on their behalf. The customer is given a shipping number so they can track the company's receipt of the jewelry and the shipping process. It's preferable to have more than one shipping company available for the customer to choose from.
- The price will not be deducted from the customer’s account or restricted to the seller’s account until the jewelry is delivered to the shipping company as his agent. If the company receives the requested jewelry, the customer will be notified of this (by email, mobile message, or by following the shipping stages via the company’s website) and then the price will be deducted or restricted to him. However, before the shipping company receives the jewelry, restricting the price is merely an authorization without it being actually calculated on him.
- If the purchase is made with a credit card and the seller is late in receiving the payment, the sale is not concluded until the payment is received and entered into the seller’s account. Accordingly, the shipping procedures should not actually begin (after the shipping company receives the jewelry) until the payment is entered into the seller’s account, and then the purchase is completed to fulfill the condition of hand-to-hand exchange. If this happens, the customer is notified that the contract has been completed and the shipping procedures have begun.
- If the purchase is made with a debit card, prepaid card, or similar card, in which the seller receives the price immediately, the sale is concluded as soon as the jewelry is delivered to the shipping company.
- If it is proven that the shipping company did not deliver the jewelry to the customer for any reason, the seller must return the price to him and sue the shipping company, because the company is an agent for the seller and the buyer at the same time. To avoid accusations, the seller guarantees the delivery of the jewelry to the customer.
Fatwa Answerer: Dr. Sami bin Ibrahim Al-Suwailem
Researcher in Islamic Economics