Is it permitted to rent gold?

You say that: “A renter does not consume the property he rents, rather give it back after using it. Therefore, the properties which are consumed cannot be rented.” I am in the gold business. I was thinking of renting gold to the goldsmiths but I got confused. Can you tell me if it is permitted or not?

Goldsmiths neither use the gold as an ornament, nor as a tool to make production. They process on it to produce different shapes of gold and sell them. Giving gold to the workshops for these reasons cannot be regarded as “renting”. It is regarded as “lending”, like giving a credit. Lending gold in return for a benefit is a transaction of interest and not permitted.

Please see the answer below for the difference between renting and interest:

http://www.islamandquran.org/fatwas/what-is-the-difference-between-renting-and-interest.html

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Date: Feb 26, 2013