Is investment in gold halal or haram?

Investing in gold is halal if done according to Shariah principles, whether one buys bars, uses Sharia-compliant ETFs, or selects halal gold stocks, because gold itself isn't haram. Trading in gold is halal when payment and possession occur immediately, and gold-backed stocks or ETFs are Shariah-compliant as long as the underlying transactions meet Islamic finance rules.

Is buying gold as investment halal?

Gold itself is not deemed haram. However, the process of trading it or investing in it determines whether it's Sharia-compliant or not. Trading in gold is halal only if it complies with Sharia principles.

The trade follows the spot rule set by AAOIFI: payment and full allocation of gold to the buyer must happen instantly. Physical gold bars with immediate delivery and constructive possession are Shariah-compliant.

Buying gold on instalments defers both payment and possession, so it violates the spot condition and is haram. Any gold purchased through SafeGold after 14th October 2025 is not certified as Shariah-compliant because the buyer does not receive allocated metal at the moment of sale, and the gold remains a trust held by the bank.

Gold is a ribawi item, meaning it must be free from riba, gharar and speculative intent. Approved gold ETFs backed by fully allocated physical ounces meet this test and are judged Shariah-compliant, whereas futures, margin trades, CFDs and spread betting involve either deferred settlement or excessive uncertainty and are therefore haram.

Investment in gold is halal when the metal is fully paid for and fully owned by the investor on the spot, and any arrangement that postpones price, delivery or ownership is Shariah non-compliant.

I think buying a personal precious-metal bar is permitted, because an elementary transaction of money for a physical resource is halal. The difference is the purpose behind the buying: it must be for true possession and rich conserve, not for speculative commerce that looks like betting. I hold a strong belief that contemporary financial tools like metal futures contracts are prohibited, and theologians forbid them because they unbind the venture from true ownership of the resource. Trading in metal-commodities frequently includes selling what one does not have, and this can contribute to undue uncertainty and worry. Therefore, I see dealing in metal futures or options with intense caution, whereas acquiring a tangible bar for protecting one's money against economic uncertainty is, in my discernment, a judicious and Islamically vocalized way.

Thomas Goldfreburg

Investor at Goldfreed

Is digital gold investment halal?

Digital gold is halal when it is physically backed, payment made immediately at the time of the contract, and possession taken either physically or constructively. When these conditions are met, the contract is halal. Gold must be fully allocated to the buyer, with no uncertainty over who owns what, and delivery of gold through digital accounts is accepted as a valid form of delivery by the National Council of Malaysia's Fatwa Committee. Digital gold is haram if it does not meet the requirements of Shariah law, involves speculative practices, or lacks physical backing. Therefore, digital gold that involves speculative practices, CFDs, spread betting or other derivatives is haram, and any gold purchased through SafeGold after 14 October 2025 is not Shariah-compliant because Islamicly does not certify such purchases.

Among the available platforms, Quantum Metal Sdn. Bhd. (QMSB) is one of the digital gold investment platforms that claim to comply with Shariah principles, offering products free from haram activities like gambling or the sale of prohibited goods, and it uses blockchain technology to provide quick access and virtual storage of gold. Islamicly offers digital gold backed by physical gold, provides Shariah compliance screening, and supplies a zakat calculator, reminding investors that total gold holdings exceeding the nisab for a full lunar year require zakat at 2.5 % of the total value. Investors must therefore verify that the chosen app offers immediate payment, immediate constructive or physical possession, and transparent ownership, and they demand clear certification and receipts to confirm halal status before committing funds.

I think digital precious metal assets can be deemed halal when the organization is Shariah-compliant and the digital noble metal I buy means true allotted precious metal. The vital element is the fundamental deal: I buy total ownership of that particular resource, and my ownership must be transparent. This construction prevents interest-based loaning, because interest-based loaning of financial goods is prohibited. The organization is clear, so the venture looks like a true selling and precludes the equivocal. Yet investment includes opinion on precious metal values, and it includes factors of uncertainty, so I would require to perform careful appropriate painstaking review before concluding.

Thomas Goldfreburg

Investor at Goldfreed