If someone wants to buy digital gold or wants to invest in a commodity mutual fund which invests in gold, for short term or long term, until he makes some good profit, then can he do that? Is it permissible in Islam? Does he have to pay Zakat too for his digital investment?

  • I know of some claimed shariah-compliant commodity funds that invest in gold, however the ruling is going to depend on the implementation. For example some funds would keep a portion of their capital in cash, and this may accrue interest. Obviously you need to pay Zakat as it is a form of wealth. – UmH Mar 8 '20 at 5:41
  • Thank you, brother, for your answer. – Anonymous Mar 8 '20 at 15:26

There is no such thing as digital gold. Perhaps you mean bitcoin and its ilk?

At present, most regulatory agencies explicitly advise against digital tender. Moreover, investments are considered haram when the investment is itself haram, and this will depend on a number of factors. For example, investing directly in fossil fuels, given the scientific consensus on anthropic climate change, is haram. Investing indirectly, say through, a fund that spreads its portfolio through a set of different markets, will be haram when the portfolio is predominantly investing in industries that are haram; say for example, in fossil fuels, or in arms firms that have no ethical compunction in supply mercenary militias, or say, in vulture funds that buy up odious debt and demand repayment.

  • 1
    Well, I might have used the wrong term by saying "digital gold". But actually, I meant that someone would pay money online to buy gold that could be stored on his digital account if he wanted (though there was an option to get its physical delivery). And in many websites, it's advertised as digital gold. So I used that term. For example - 1. motilaloswal.com/technology/stock-market-investor/… 2. paytm.com/digitalgold – Anonymous Mar 7 '20 at 19:58
  • And then in the second option, I said about mutual funds, where there was no option to get physical delivery of purchased gold (as far as I know). For example - nipponindiamf.com/FundsAndPerformance/Pages/… But thank you anyway, brother, for your response. – Anonymous Mar 7 '20 at 19:59
  • @anonymous: Well, I suggest that you rewrite your question to make that clear; after all, if I buy a coffee cup with digital money, I don't call that a digital coffee. – Mozibur Ullah Mar 8 '20 at 9:15
  • Thank you for your suggestion, brother. Next time I will keep that in my mind to clearly explain my question. By the way, my topic was not about the type of currency, it was about the purchased thing. Your example is correct, but it doesn't fit in this context. I have already explained it in my previous two comments. – Anonymous Mar 8 '20 at 15:22

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