Contemporary forward gold transactions and their harmonization with views of ibn Taymiyyah and ibn Qayyim al-Jawziyyah: Comex New York gold futures as case study / Moctar Moussa Djibrilla
Despite the abolition of the gold monetary system, which was used in prior eras of Islamic civilization, along with the domination of forward products in the contemporary gold business sector, the majority of Muslims jurists still emphasize that to defer delivery of product or delay payments is h...
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| Format: | Thesis |
| Published: |
2017
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| Online Access: | http://studentsrepo.um.edu.my/7876/2/All.pdf http://studentsrepo.um.edu.my/7876/6/moctar.pdf http://studentsrepo.um.edu.my/7876/ |
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| Summary: | Despite the abolition of the gold monetary system, which was used in prior eras of
Islamic civilization, along with the domination of forward products in the
contemporary gold business sector, the majority of Muslims jurists still emphasize
that to defer delivery of product or delay payments is highly prohibited in gold
transactions. This study argues that in the contemporary world, where gold does not
play any role as currency, there are credible views based on solid Islamic legal
sources from Ibn Taymiyyah and Ibn Qayyim that permit deferred delivery and
delayed payment in gold business contracts. However, this is limited to gold matter
that isn’t minted by a monetary authority for currency purposes. Thus, the main
objective of this study is to discuss the modern forward gold contracts and gold
futures and to discover how far these products are in harmony with Ibn Taymiyyah
and Ibn Qayyim’s views that permitted defer delivery and delay payment in noncurrency
gold transactions. In order to achieve the goals of this study the researcher
used the following methods: induction, comparative, and analysis approaches. In
addition, a qualitative approach was used in order to conduct interviews to hear the
views of fatwa issuers and shari’ah experts in the gold business sector. Moreover, the
analysis of secondary data and interview responses indicates that gold and all of its
derivatives (ore, coins, dīnār, jewellery, etc.) have been used by Muslims as one of
the major currencies during the time of the Prophet (PBUH) and his companions
(RDAN). However, it was found the role of gold as currency was confined to the
dinar and Muslim scholars were divided in to different views about gold transactions.
The majority view, known as the Jumhur, prohibited deferred delivery and delayed
payment gold transactions. However, the minority view, held by Ibn Taymiyyah and
Ibn Qayyim, permitted it under certain circumstances. This study adopts the minority
opinion in accordance with valid Islamic sources and contemporary realities. Finally
it was suggested that more research is needed to determine the general prohibitions
that Ibn Taymiyyah and Ibn Qayyim’ views did not allow to be applied in modern
forward gold transactions and gold futures |
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