When doing business, is there a limit on the amount of profit according to Islam?

Q:  l had a question regarding silver bullion we buy & sell and wanted to know how do we determine how much to charge to sell these silver bars, what is a acceptable profit margin as my friends says there is none.

Even if there is no limit on the profit one is allowed, l feel this will have more complications later as how would the brother who bought the product feel once he finds out he paid more £200 more than the market value please could you explain to us what is right and wrong according to Islam?

الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب

A:It is permissible to sell gold and silver at any price agreed between the buyer and the seller provided all the normal conditions of the sale are met. Whilst a person should adopt exemplary business ethics, shariah does not stipulate how much profit a person may earn. That is up to the buyer and seller to agree. Each party should conduct his own due diligence and can only hold himself to blame if he fails to do so. The only exemption to this rule is when there is scarcity and the price being charged is detrimental to society as a whole. In such cases, the government may intervene and set and force the seller to sell at a price that does not harm the interests of society.

Leave a Reply

Your email address will not be published. Required fields are marked *