The Egyptian Fatwa Department explained that exchanging old gold for new gold, or trading it for crafted jewelry, is permissible under Islamic law, as long as only the difference in value is paid without the need to sell the old gold first. The fatwa noted that crafted gold has ceased to be a medium of financial exchange and is treated like any other commodity, so it does not require strict equality or immediate hand-to-hand transfer as with gold and silver used as currency.

The fatwa referenced the hadith of Abu Sa‘id Al-Khudri, in which the Prophet Muhammad ﷺ said: «Do not sell gold for gold except equal for equal, and do not defer some of it against some», emphasizing that the prohibition of disparity and deferred payment applies when gold and silver are treated as currency.

Al-Azhar clarified that crafted gold and silver are exempt from this ruling and may be traded freely with payment of any difference in value, as they are now treated like other goods where the craftsmanship adds value. This distinction removes the restrictions that apply to gold and silver used as money, highlighting that legal rulings are connected to the underlying reason for the law.