I have some old gold, which I took to the jeweller to have some new bracelets made. He said that he would melt it down and make it into something new, and that he would charge only for the work, i.e., his labour. Note that when old gold is melted down it loses approximately 2-3 grams, so the new bracelets would weigh less than the gold which I gave to him. Please advise me, may Allaah reward you.
Praise be to Allaah.
If the jeweller is going to make your gold into jewellery, as you have asked him to, and then take a fee for his work, there is nothing wrong with that. But if he is going to make the jewellery from gold that is not yours, and he will take your gold as payment in addition to his fee, this is not permissible, because when gold is sold in exchange for gold, the amounts must be equal, and the transaction must be completed in one sitting.
And Allaah is the Source of strength. May Allaah bless our Prophet Muhammad and his family and companions, and grant them peace.