Short answer
Not by swapping weights that differ. Gold for gold must be equal in weight and hand to hand, whatever the quality or design, so trading 10 grams of old jewellery for 8 grams of new is riba. The halal way is two separate deals: sell the old gold for money, take the money, then buy the new piece with it.
Gold exchanged for gold must be equal in weight and handed over in the same sitting; differences in purity, workmanship or design do not justify any difference in weight. The jeweller may buy the old gold for cash and then sell the new gold for cash in a separate transaction.
The four schools agree on this.
Explanation
This comes up every time someone trades in old jewellery at a jeweller's. The shop weighs your old gold, deducts something for impurity or wear, and gives you a lighter new piece, or a new piece plus a charge. When gold goes directly for gold, that is the riba the Prophet ﷺ described: gold for gold must be like for like, hand to hand, and whoever gives more or asks for more has dealt in riba.
Bilal once traded two measures of poor dates for one measure of good dates to serve the Prophet ﷺ, who said, "Oh, the very essence of riba! Do not do it. If you want to buy, sell the dates in a separate sale, then buy with the price." The same solution works for gold:
- Sell your old gold to the jeweller for cash at the price you agree, and receive the money.
- Then buy the new piece for cash at its price, which can include the making charge.
- Each step is settled on the spot, and the second sale must not be a condition of the first.
Other points:
- The making or labour charge is fine as part of the cash price of new jewellery. It is not fine as extra on top of a gold-for-gold swap.
- When you buy gold with money, take the gold on the spot, and paying at the same time is the safer course; see Is investing in gold halal?
- Silver for silver follows the same rules. Gold for silver may differ in weight but must be hand to hand.
The four schools agree on the rule. For zakat on your jewellery, see Zakat on jewellery you wear.
The evidence
Quran, Surah Al-Baqara 2:275
ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَٰنُ مِنَ ٱلْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ ۗ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ ۚ فَمَن جَآءَهُۥ مَوْعِظَةٌۭ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِ ۖ وَمَنْ عَادَ فَأُو۟لَٰٓئِكَ أَصْحَٰبُ ٱلنَّارِ ۖ هُمْ فِيهَا خَٰلِدُونَ ﴿٢٧٥﴾
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.
Two honest sales are trade; an unequal gold swap is riba.
Sahih al-Bukhari 2177
Sahih... لا تبيعوا الذهب بالذهب إلا مثلا بمثل ...
"Do not sell gold for gold except like for like."
Gold exchanged for gold must be equal in weight.
Sahih al-Bukhari 2312
Sahih... أوه عين الربا ...
"Oh, the very essence of riba."
The Prophet ﷺ taught to sell for money first and then buy, instead of an unequal swap.
Sahih Muslim 1584
Sahih... فمن زاد أو استزاد فقد أربى ...
"Whoever gives more or asks for more has dealt in riba."
Any excess in a same-kind exchange is riba.
Where the ruling is recorded
- al-Hidaya, Kitab al-Sarf. Gold for gold must be equal and hand to hand; quality and workmanship do not count.
- Radd al-Muhtar (Ibn Abidin), Kitab al-Buyu', Bab al-Sarf. The same ruling, with the way out through two separate sales.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.