Answer
Wa `alaykum as-salamu wa rahmatullahi wa barakatuh.
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
It is a rule in the Islamic Shari`ah that gold cannot be sold in installments or on credit.
Responding to your question, the eminent Muslim scholar, Dr. `Abdel-Fattah Idrees, Professor of Comparative Jurisprudence at Al-Azhar University, states:
Gold cannot be sold in installments or on credit, as the price and the sold object (gold in this case) must be delivered on the spot in the same situation.
Abu Sa`id Al−Khudri narrated that the Prophet (peace and blessings be upon him) said, “Do not sell gold for gold unless equivalent in weight, and do not sell less amount for greater amount or vice versa; and do not sell silver for silver unless equivalent in weight, and do not sell less amount for greater amount or vice versa and do not sell gold or silver that is not present at the moment of exchange for gold or silver that is present.” (Al-Bukhari and Muslim)
It was also narrated by Abu Bakrah that the Prophet (peace and blessings be upon him) said, “Don’t sell gold for gold unless equal in weight, nor silver for silver unless equal in weight, but you could sell gold for silver or silver for gold as you like.” (Al-Bukhari)
From the hadiths mentioned above and many others on the same topic, the jurists concluded that gold cannot be sold either in installments or on credit, rather both the object and the price have to be delivered on the spot.
Almighty Allah knows best.
Editor’s note: This fatwa is from Ask the Scholar’s archive and was originally published at an earlier date.