Selling gold at a lower price than its market value
Fatwa No: 165053

  • Fatwa Date:9-10-2011 - Thul-Qi'dah 12, 1432
  • Rating:

Question

my wife want to sell a gold chain i gifted to her before we go on holiday so that i can give my mum some money before we go. the money shop that we are selling at is offering to pay as much less than the value of the gold as they are offering 180 pound and the market value if you buy new is 300 pounds is it permissable to sell to them

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

It is permissible to sell this chain at the price that you mentioned or at a greater or lesser price on the condition that the sale is hand to hand in one session [in the same sale contract]. The fact that the market price of the chain is £ 300 does not have any effect on its sale price.

It might be that the reason why its price drops is that jewelers do not pay for the price of manufacturing when purchasing the gold; rather, they buy it as raw gold, unlike when they sell it as they charge for the price of manufacturing.

In any case, there is nothing wrong about what you mentioned provided that the sale is hand to hand. For more benefit, please refer to Fatwa 82096.

Allaah Knows best.

Related Fatwa