Implementation of Al-Wadiah (saving instrument) Contract In Contemporary Gold Transaction

Mohd Sollehudin Shuib, Azizi Abu Bakar, Amirul Faiz Osman, Hydzulkifli Hashim, Aiman bin Fadzil

Abstract


Contemporary gold trading is like other retails and online trading. However, according to Islamic business contract, gold is categorized under a special law of transaction items and it must follows a specific law of Islamic business transaction. This article focuses on how wadiah concepts can be applied in the contemporary gold trading. The legality of the wadiah concepts is utmost important to be verified before its implementation. The aims of this article is to substantiate the concepts of wadiah in contemporary gold trading based on the main sources of Islamic law transactions. The finding shows that the wadiah concept is permissible in Islam. Furthermore, the wadiah also play important role in contemporary gold trading. Hence, wadiah contract can helps to resolve the gold trading issues where the physical assets of gold are distance from the buyer.


Full Text:

PDF

References


A.M. Hafizi, Noreha Halid, Norzalita Abdul Aziz and Hawati Janor. (2016). ‘Gold Investment in Malaysia: Its Operation, Contemporary Applications and Shariah Issues’. Derived from conference.qfis.edu.qa/app/media/7026.

Azman Mohd Noor. (2013). Wakalah Paper, derived from drazman.net/wp-content/uploads/2013/03/wakalah-paper.pdf.

Bank Negara Malaysia. (2015). Wakalah Concept Paper, Kuala Lumpur: BNM, derived from http://www.bnm.gov.my/guidelines/05_shariah/Wakalah.pdf

Bank Negara Malaysia. (2016). Kijang Emas, http://www.bnm.gov.my/index.php?ch=statistic&pg=statistic_kijangemas

Dexiu Zhang. (1998). The Impact of the East Asian Financial Crisis on China's Economy, Information Journal, Vol.1, No.1, July, 1998. Derived from http://www.information-iii.org/abs_e.html#No1-1998

Fengqi Cao. (1999). The Asian Financial Crisis and Chinese Currency, Information Journal, Vol.2, No.3, July 1999, derived from http://www.information-iii.org/abs_e.html#No3-1999

Hafas Furqani (2013), Fatwa in Islamic Finance Bulletin, Kuala Lumpur: ISRA

http://www.kfh.com.my/kfhmb/v2/contentView.do?contentTypeId=3000&displayPage=%2Fver2%2Fcontent%2Fstandard.jsp&channelPath=%2Fver2%2Fv2_Navigation%2FCommercial+Banking%2FInvestments&programName=04_Gold+Account&tabId=1&cntName=01-GoldAccount-i

http://www.maybank2u.com.my/mbb_info/m2u/public/personalDetail04.do?channelId=INV-Investment&cntTypeId=0&cntKey=INV03.02&programId=INV03-Gold&chCatId=/mbb/Personal/INV-Investment

Islamic Finance news. (2016). All that glitters: What impact could gold really have on Islamic finance?’. Derived from http://www.islamicfinancenews.com/glossary/ribawi

KFHMB. (2016). Gold Account-I,

Maybank. (2016). Gold Investment Account Products,

Muhammad Yusuf Saleem. (2015). Islamic Commercial Law’, John Wiley & Sons: NJ USA

Online Dictonary (2016), https://www.google.com/search?q=meaning+of+gold&ie=utf-8&oe=utf-8

Sang-Lyul Ryu and Jayoun Won. (2015). The Global Financial Crises and Intermediation Efficiency in the Korean Banking Sector, Information Journal, Vol.19, No. 6(A), June, 2016. Derived from http://www.information-iii.org/abs_e2.html#No12-2015

Security Comission. (2014). Shariah Parameters on Islamic Exchange-Traded Fund Based on Gold and Silver. Derived from http://www.sc.com.my/wp-content/uploads/eng/html/icm/Shariah_Parameters_7October14.pdf

Sheila Nu NuHtay & Syed Ahmad Salman. (2013). Shari`ah and Ethical Issue in the Practice of Modified Wakalah Model in Family Takaful, International Journal of Business and Social Science, vol. 4 no. 12, September 2013.

Syed Alwi, S.F., Suhaimi, M. & Mohamed Kamil, M. M. (2013). Gold Investment Account in Kuwait Finance House (M) Berhad and Maybank Berhad, Journal of al-Thaqafah, vol. 3 issue 1, KUISAS: Ipoh

Tim Pullen, Karen Benson, and Robert Faff. (2014). A Comparative Analysis of the Investment Characteristics of Alternative Gold Assets, A Journal of Accounting, Finance and Business Studies (ABACUS), Vo. 50, No. 1, 2014

Web Islamic Finance. (2016). http://www.islamic-finance.com/item_sarf_f.htm. Please also refer to Hadith Collection by Imam Muslim (primary sources).

World Gold Council (2011), ‘Liquidity in the Global Gold Market’, WGC: United Kingdom

Issa Qaed Mansour Qaed (2014), The Concept of Wadiah and its application in Islamic Banking, Journal of Research in Humanities and Social Science Volume 2, Issue 11 (2014) pp: 70-74.

Abu Nasr Ismail bin Hammad Al-Farabi. 1987. Al Shahah Taju Al Lughah Al Shahah Al Arabiyah. : BeirutDar El Ilm

International Shari’ah Research Academy for Islamic Finance (2012), Islamic Finacial System; Principle & Oparations. Kuala Lumpur: International Shari’ah Research Academy for Islamic Finance (ISRA)




DOI: http://dx.doi.org/10.18533/job.v1i4.48

Refbacks

  • There are currently no refbacks.


Copyright (c) 2016 Journal of Business

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.