Before calling something a Shari‘ah-compliant commodity investment, ask: Did the fund really own the commodity? Did it obtain possession? Was the commodity halal? Was the price known? Was the resale a real sale rather than a paper transfer?
If these questions are answered clearly, the structure becomes much easier for a non-specialist to evaluate.
Opening interactive controls...
Commodity Funds: Real Trade, Not Paper Commodity Exposure
Before calling something a Shari‘ah-compliant commodity investment, ask: Did the fund really own the commodity? Did it obtain possession? Was the commodity halal? Was the price known? Was the resale a real sale rather than a paper transfer?
If these questions are answered clearly, the structure becomes much easier for a non-specialist to evaluate.