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Agency In The Sale Of Gold

What is the Shariah ruling in regard to certain foreign banks that deposit amounts of gold with local money changers engaged to arrange the sale of the gold on behalf of the banks?

The Shariah views the money changer as an agent of the depositing bank and the gold in his safekeeping is considered a trust which cannot be guaranteed by the trustee except in cases of gross neglect or willful destruction. If the agent sells to other than himself, the price must be received from the buyer without delay.

If the agent sells the gold to himself, the bank must be notified so that the deal may be completed between the two parties directly as stipulated by the Shariah. The bank may even deduct the sale price from the agent’s account thereby fulfilling the requirement for direct and immediate exchange. If the agent does not possess an account with the bank, he must arrange to make immediate payment.

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