Selling worked gold for ingots with a payment for the work
Question

                Is it permissible to sell ingots for worked gold with a payment for the work done?.
Praise be to Allah.
    Selling worked gold for ingots with a payment for the work 
    done, such as selling one kilo of worked gold and taking in return more than 
    one kilo of ingots, in return for the work done, or taking one kilo along 
    with some money in return for the work, is haraam and is a form of riba. If 
    gold is sold for gold, it must be like for like, whether the gold has been 
    worked or is in the form of ingots. Hence the fuqaha’ said: ingots, gold 
    that has been worked into jewellery and the like and gold that has been made 
    into coins are all the same, and the fact that it has been worked does not 
    count. If the transaction is not completed hand to hand, this is riba 
    al-nasee’ah, and the transaction then includes two types of riba – riba 
    al-nasee’ah and riba al-fadl. 

    Ibn Qudaamah (may Allaah have mercy on him) said in 
    al-Mughni (4/29): Good quality and poor quality, ingots and coins, good 
    condition and broken may all be sold like for like, and it is haraam for the 
    quantities to differ. This is the view of most of the scholars, including 
    Abu Haneefah and al-Shaafa’i. It was narrated from Maalik that it is 
    permissible to sell coins for a similar value of the same type, but his 
    companions disagreed with that and denied that he said that. End quote. 
In al-Mawsoo’ah 
    al-Fiqhiyyah (22/74) it says: The majority of fuqaha’ are of the view 
    that pure gold or gold nuggets, in good condition or broken, must be sold 
    like for like, and it is haraam for the quantities to differ. Al-Khattaabi 
    said: The Messenger of Allaah  (peace and blessings of Allaah be upon 
    him) forbade selling a mithqaal of pure gold for a mithqaal and more of 
    nuggets that have not been made into coins. He also forbade exchanging 
    different quantities of silver that has been made into coins and that which 
    has not been made into coins. This is the meaning of the words of the 
    Prophet  (peace and blessings of Allaah be upon him): “Gold for gold, 
    nuggets and coins.” End quote. 

    This hadeeth was narrated by Abu Dawood (3349) and classed as 
    saheeh by al-Albaani in Saheeh Abi Dawood. 
Nuggets refers to pieces 
    of gold and silver that have not been given shape or stamped; if they have 
    been stamped then they are coins, which are superior to nuggets. 

    See al-Majmoo’, 10/97; Kashf al-Asraar, 3/320 

    The scholars of the Standing Committee were asked: A 
    goldsmith takes a fee for working with gold, and that is done either by 
    selling gold and taking its price along with his fee, or by exchanging gold 
    for gold and taking the fee for working it along with the profit he makes. 

    They replied: 

    There is nothing wrong with taking the payment for working 
    the gold along with the price of the item sold, so long as it is sold for 
    something of a different nature, such as paper money. But if it is sold for 
    something of the same type, such as gold for gold in addition to the fee, 
    then it is not permissible, because it is narrated in al-Saheehayn 
    from Abu Sa’eed al-Khudri (may Allaah be pleased with him) that the Prophet 
     (peace and blessings of Allaah be upon him) said: “Do not sell gold for 
    gold except like for like, and do not let the quantities differ. Do not sell 
    silver for silver except like for like, and do not let the quantities 
    differ. Do not sell gold or silver that is not present at the moment of 
    exchange for gold or silver that is present.” End quote.  

    Fataawa al-Lajnah al-Daa’imah, 
    13/487 

    Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) was 
    asked about some gold shop owners who go to the gold dealer and give him a 
    kilo of pure gold, and take from him a kilo of gold that contains precious 
    stones such as diamonds, zircons and so on, and they also pay him a fee for 
    working it. 
He replied: This 
    transaction is haraam, because it involves riba, and the riba in this case 
    involves two things, as the questioner mentioned: the first is giving 
    additional gold, as he gives more gold in return for the gem stones etc. 

    The second is adding the fee for working it, because the 
    correct view is that it is not permissible to add the fee for working it, 
    even though this work is the effort of a human being, thus it is something 
    added, which is similar to the added quality which may be the way Allaah 
    created things. The Prophet  (peace and blessings of Allaah be upon him) 
    forbade selling a saa’ of dates for two saa’s of inferior dates. The Muslim 
    must beware of riba and keep away from it, for it is one of the worst of 
    sins. End quote from Fiqh wa Fataawa al-Buyoo’, p. 393. 
    compiled by Ashraf ‘Abd al-Maqsood. 
The Islamically 
    prescribed way of carrying out this transaction is as follows: he should 
    take a kilo of gold for a kilo of gold, hand to hand, like for like, no 
    matter what work has been done, and even if one of them is an ingot on which 
    no work has been done. 

    Or he should sell the ingot for paper money, then buy 
    whatever he wants of worked gold.  

    Or he should buy the unworked gold, and give it to someone 
    who will work it in return for a cash payment. 

    Concerning the last situation, Shaykh Ibn ‘Uthaymeen (may 
    Allaah have mercy on him) said:  

    If the dealer is also a goldsmith, he may say: “Take this 
    gold and work it for me” – however he wants it worked –  “and I will pay you 
    for it when you have finished.” There is nothing wrong with this. End quote 
    from Fiqh wa Fataawa al-Buyoo’, p. 401.