When selling gold in exchange for gold, or silver in exchange for silver, if there is a difference in quality, is equality of weight necessary? And what is the Sunnah method of exchanging jewellery?
1. The original Prophetic law: “Gold for gold, and silver for silver, like for like, equal for equal, hand to hand” — gold in exchange for gold and silver in exchange for silver, exactly equal, cash for cash (Sahih Muslim: 1587, Sahih Bukhari: 2175).
The answer — and success is from Allah:
1. The original Prophetic law: “Gold for gold, and silver for silver, like for like, equal for equal, hand to hand” — gold in exchange for gold and silver in exchange for silver, exactly equal, cash for cash (Sahih Muslim: 1587, Sahih Bukhari: 2175). Two conditions are obligatory: (first) the transaction must be entirely cash and hand to hand — credit is haram; (second) the weight on both sides must be exactly equal — not even a ratti's worth of excess or deficiency is permissible.
2. The consideration of quality: In the exchange of gold for gold, quality, beauty, and being old or new have been declared of no consideration by the Shariah. Evidence: Bilal, may Allah be pleased with him, exchanged two sa' of ordinary dates for one sa' of superior dates, whereupon he ﷺ said: “Alas! This is outright riba; never do this — sell your dates in exchange for dirhams, then buy the superior dates with those dirhams” (Sahih Bukhari: 2312).
3. The Sunnah method of exchanging jewellery: Giving old gold and taking new jewellery of lesser weight is outright riba. The solution is in two stages: (Stage one) Sell the old gold to the goldsmith in exchange for cash and receive the full amount; (Stage two) Then, with that same money, buy the new jewellery of your choice for cash — after settling the charge for the design and making. There is neither any suspicion of excess or deficiency of weight, nor the sin of riba.
Translated from the original Urdu fatwa.