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Salam For Precious Metals
Is a Salam for gold and precious stones permissible?
Salam transactions are typically for fungible items. According to AAOIFI Shariah Standard No. 10 “Salam and Parallel Salam,” section 3/2/4: “It is not permissible for al-Muslam ?hi to be an amount of currency or gold or silver, if the capital of the Salam contract was paid in the form of currency or gold or silver.” This is because the rulings pertaining to the exchange of currency, gold, and silver stipulate that amounts be exchanged at spot, and Salam entails deferment.

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