Bai’ al-Sarf

Abu Sa‘id al-Khudri reported Allah’s Messenger (Sall Allah-o-alaihe wa sallam) as saying: “Do not sell gold for gold, except like for like, and do not increase something of it upon something; and don’t sell silver for silver unless like for like, and don’t increase something of it upon something and do not sell for ready money something to be given later.”

Abu Sa‘id al-Khudri (Allah be pleased with him) reported Allah’s Messenger (Sall Allah-o-alaihe wa sallam) as saying: “Do not sell gold for gold and silver for silver except weight for weight and of the same kind and in equal quantity.”

‘Abd al-Rahman b. Abu Bakra reported on the authority of his father that Allah’s Messenger (Sall Allah-o-alaihe wa sallam) forbade the sale of gold for gold, and silver for silver except equal for equal, and com­manded us to buy silver for gold as we desired and buy gold for silver as we desired. A person asked him (about the nature of payment), where­upon he said: “It is to be made on the spot. This is what I heard from Allah’s Messenger (Sall Allah-o-alaihe wa sallam).”     

Fadala b. ‘Ubaid al-Ansari reported: A necklace having gold and gems in it was brought to Allah’s Messenger (Sall Allah-o-alaihe wa sallam) in Khaibar and it was one of the spoils of war and was put to sale. Allah’s Messenger (Sall Allah-o-alaihe wa sallam) said: “The gold used in it should be separated, and then Allah’s Messenger (Sall Allah-o-alaihe wa sallam) further said: ‘(Sell) gold for gold with equal weight’.”

Source: Economic Teachings of Prophet Muhammad (peace be upon him): A Select Anthology of Hadith Literature on Economics, Muhammad Akram Khan. Republished with permission.