{"_id":"66fd7a15928b902b953d7d44","title":"{\"ops\":[{\"insert\":\"Why are conventional gold ETFs not permissible?\"}]}","question":"{\"ops\":[{\"insert\":\"Why are conventional gold ETFs not permissible?\"}]}","answer":"{\"ops\":[{\"insert\":\"One key principle is that any exchange involving gold, silver, or currency must be on a strictly spot basis, meaning that upon the buyer’s payment, the specific amount of gold must immediately come into the buyer’s physical possession. The Prophet ﷺ said, “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, and salt for salt—like for like, equal for equal, hand to hand. If these types differ, then sell as you wish, provided it is hand to hand” (Sahih Muslim). Unfortunately, Muslim scholars who have examined the gold markets today confirm that these conditions are often not met.\\n\\nAdditionally, conventional ETFs frequently engage in speculative derivatives (e.g., futures, options) to hedge against price fluctuations, and they often hold funds in debt instruments, both of which are considered impermissible under Islamic law.\"}]}","tags":[{"_id":"668da01b0b76658b4c232e51","tag":"Contemporary Life: Interest","count":34}],"createdOn":"2024-10-02T16:51:33.652Z"}