Gold investing FAQ
The questions people ask before they buy their first gram.
Is buying and holding physical gold halal?
Yes. Owning gold is permitted; what Islamic law regulates is how you exchange it. The requirement is that gold and payment are both settled in the same sitting — hand to hand. A cash purchase where you take the gold immediately meets that condition.
What is the difference between 24K and 22K?
24K is 99.9% gold and soft — the form bars and investment coins take. 22K is 91.6% gold, alloyed to be hard enough to wear, which is why most jewellery is 22K. For storing value, 24K means fewer non-gold grams to pay for.
How do I convert the world gold price to a local per-gram price?
Divide the price per troy ounce by 31.1035 to get the price per gram of 24K gold, then multiply by 0.916 for 22K or 0.750 for 18K. Local duty, VAT and making charges are added on top of that.
Why can I not sell gold back at the price I just paid?
Because you bought at the ask and can only sell at the bid. The gap between them — the spread — is the dealer’s margin. With jewellery, the making charge widens that gap further, since buyers pay for metal rather than workmanship.
Do I have to pay zakat on gold jewellery I wear?
Zakat is due on gold once your holding passes the nisab and a lunar year completes, at 2.5%. Whether everyday worn jewellery is included is a question scholars have differed on, and the evidence is set out in our Fatwa Library. Our calculator lets you apply either position and shows the resulting amount.
Is gold a good hedge against inflation?
Over long periods gold has preserved purchasing power well. Over any single year it often has not — in some inflationary years it fell. What moves the price in the short run is real interest rates and expectations, not the inflation number itself.
Is buying gold on instalments allowed?
This is the classic hand-to-hand problem: the gold is delivered while payment is deferred, so the exchange is not settled in one sitting. The detailed ruling, with its evidence, is in the Fatwa Library, and you can put your specific arrangement to a scholar.
Where should I store physical gold?
The three normal options are home storage, a bank locker, and professional allocated custody. Home is free but carries the whole risk; a locker is cheap but the bank does not insure the contents; allocated custody costs a fee but the metal is held in your name and is insured. Match the choice to how much you hold.