Gold Consignment under Sharia Economic Law and Its Implementation in Modern Business

Abstract

Gold consignment has emerged as a rapidly growing business model in the trade of precious metals and jewelry, operating through both physical retail outlets and digital platforms. As a ribawi commodity, gold possesses specific legal characteristics that require careful contractual arrangements to ensure compliance with the principles of Islamic economic law. This article aims to analyze the concept of gold consignment from the perspective of Islamic jurisprudence (fiqh muʿāmalāt), identify the most relevant contractual structures, and examine its implementation in modern business practices along with the associated legal challenges. This study employs a qualitative method with a normative-descriptive approach, based on a comprehensive literature review of classical and contemporary fiqh sources, fatwas issued by the National Sharia Council of the Indonesian Council of Ulama (DSN-MUI), as well as regulations related to trade and consumer protection. The analysis focuses on assessing the conformity of gold consignment practices with fundamental principles of Islamic economic law, including justice, trustworthiness, transparency, and the prohibition of ribā and gharar.The findings indicate that gold consignment is, in principle, permissible under Islamic economic law, provided that it is governed by clear, consistent, and non-contradictory contractual arrangements. The most appropriate contractual structure is a combination of wadiʿah (safekeeping) and wakālah bi al-bayʿ (agency to sell), with ujrah as a legitimate service fee. Nevertheless, the implementation of gold consignment in modern business settings continues to face several challenges, such as contractual ambiguity, exposure to gold price volatility, and inadequate consumer protection, particularly in digital transactions. This article contributes a normative conceptual framework for gold consignment contracts that aligns with Islamic economic law and remains adaptive to the dynamics of modern business practices.