Gold investment is currently very popular with most people, especially for those who have capital. Unstable economic conditions encourage them to invest their wealth in gold, because the price is stable and tends to rise. However, does Islam allow its followers to invest in gold? What is the law?
Investment in Islam
How is gold investment in the view of Islam? In the book Sharia Insurance: Life and General: Concept and System/Operational, M. Syakir Sula explains that in general, investment in Islam is divided into two. First, investments that are in accordance with Sharia. Second, investments that are not in accordance or contrary to the Sharia.
Sharia-compliant investments are those that apply the principles of rabbani, halal, and maslahat. The rabbani principle is to believe that everything belongs to Allah Swt, and humans only use His entrustment to be able to fulfil the needs of life in the world while preparing provisions for the hereafter. Meanwhile, the principle of maslahat is the essence of doing business, where all parties involved in the investment get profits or benefits according to their respective portions.
Meanwhile, investments that contradict the Shari’ah are investments that become shubhat and haram. The definition of shubhat investment is the sale of services or goods whose halalness is still in doubt. Meanwhile, investment in the haram category means that it is expressly prohibited by Allah SWT.
Read also: Year-end Zakat must be completed before 2024 ends
Gold Investment Law
According to the fatwa of the National Sharia Council of the Indonesian Ulema Council (DSN-MUI) No 77/DSN-MUI/V/2010, gold investment in Islam is permissible. However, you must pay attention to the terms and conditions that follow. What are the terms and conditions?
Cash
Purchases for gold investment must be made in cash, not on credit or in instalments.
Direct
The sale and purchase of gold must be done directly without delay in the delivery of goods or money. Once the money is given, the goods must be delivered immediately.
Real
The gold being traded must be clear or not fictitious. The measure or scale of gold must also be the same value between what is sold and handed over.
The above explanation is in accordance with the following Hadith:
“If gold is exchanged for gold, silver for silver, fine wheat for fine wheat, sha’ir wheat for sha’ir wheat, dates for dates, salt for salt, then the measure must be the same and it must be in cash. If the objects being exchanged are different, then the measure may be whatever you like, so long as it is in cash.” (Sahih Muslim No. 1587)
Advantages of Gold Investment
Gold has many advantages. Starting from being difficult to destroy to not being affected by monetary crises or political and military conflicts. What are the benefits of investing in gold?
The safest asset
Compared to property or stocks, gold is more sought after because it is considered safe. When the economy is in turmoil, gold will retain its value. The value of gold is also often reversed when there are major changes in the stock market.
Avoid inflation and deflation
When inflation rises high or deflation occurs, most people look to gold to protect their wealth from rising or falling costs of goods and services.
Minimal risk
Because it is protected from inflation and deflation, gold has minimal risk. Its price tends to be stable, even rising from year to year. Gold can also be stored easily for a long period of time.
Liquid and flexible
Gold is liquid or easy to liquidate. Thus, gold provides flexibility for people who invest their wealth in gold. Whenever you need quick cash, you can sell gold easily.
Read also: Zakat on jewellery, what are the rulings?
Zakat on Gold
‘…And those who store up gold and silver and do not spend it in the cause of Allah, then let them know (that they will have) a painful punishment.’ (QS. At-Taubah: 34)
The above verse explains that gold is obligatory for every Muslim who owns it. Allah clearly mentions that those who do not spend their wealth (gold and silver), then they will be afflicted with a painful punishment.
The Prophet Muhammad SAW also explained in a hadith about the obligation to pay zakat on gold and silver.
“Abu Hurairah reported that the Prophet said: ‘Whoever owns gold or silver and does not pay zakaah on it, on the Day of Resurrection a plate will be gilded for him from the fire of Hell, then heated in the fire of Hell Jahannam, then ironed his forehead, ribs and back with the plate. When it cools down, it will be gilded again and ironed for him on a day equal to fifty thousand years. Then he will see the place to which he will return, whether to Paradise or to Hell.” (HR Muslim)
To be clearer about the calculation and attribution of gold zakat, you can read it more fully in the article: How to Calculate Gold Zakat, Terms, and Nisab. You can also pay gold zakat at Dompet Dhuafa through the following page!
