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

Author

Listed:
  • Mohd Sollehudin Shuib

    (Islamic Business School, College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia.)

  • Azizi A. Bakar

    (Islamic Business School, College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia.)

  • Amirul F. Osman

    (Islamic Business School, College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia.)

  • Hydzulkifli Hashim

    (Islamic Business School, College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia.)

  • Aiman bin Fadzil

    (Islamic Business School, College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia.)

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.

Suggested Citation

  • Mohd Sollehudin Shuib & Azizi A. Bakar & Amirul F. Osman & Hydzulkifli Hashim & Aiman bin Fadzil, 2016. "Implementation of Al-Wadiah (saving instrument) Contract in Contemporary Gold Transaction," Journal of Business, LAR Center Press, vol. 1(4), pages 35-38, September.
    • Handle: RePEc:lrc:larjob:v:1:y:2016:i:4:p:35-38
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    References listed on IDEAS

    as
    1. Tim Pullen & Karen Benson & Robert Faff, 2014. "A Comparative Analysis of the Investment Characteristics of Alternative Gold Assets," Abacus, Accounting Foundation, University of Sydney, vol. 50(1), pages 76-92, March.
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    More about this item

    Keywords

    Gold Transaction; Islamic Law of Contract; Wadiah Contract.;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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