1. Same story, different day...........year ie more of the same fiat floods the world
    Dismiss Notice
  2. There are no markets
    Dismiss Notice
  3. Week of 6/24/2017 Closing prices & Chg Over Last Wk---- Gold $1256.40 Silver $16.64 Oil $43.01 USD $96.94
  4. "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"
    Dismiss Notice

Islamic world and sharia banking will soon have a gold backed currency and financial system

Discussion in 'Coffee Shack (Daily News/Economy)' started by Goldhedge, Apr 30, 2016.



Tags:
  1. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

    Joined:
    Mar 28, 2010
    Messages:
    28,441
    Likes Received:
    32,306
    Trophy Points:
    113
    Occupation:
    Retired
    Location:
    Planet Earth
    Islamic world and sharia banking will soon have a gold backed currency and financial system

    11:00 AMdemand, gold, gold price, gold standard, islam, sharia finance, supplyNo Comments
    We have talked extensively on how China, Russia, and many of the BRICS nations are preparing for a return to the gold standard in both trade and currencies. But a new report out from the Middle East shows that the Islamic world is also forging out protocols to institute the use of physical gold in sharia banking.

    The significance of this new program is that to accommodate Islam's religious mandate for gold backed money, a new and extremely large buying program will have to take place among several Middle Eastern nations, with demand for gold stretching already short supplies to a breaking point, and where prices will skyrocket from this new source of demand.

    [​IMG]

    “Shariah-compliant gold demand may be `hundreds of tons’ … Gold products used in Islamic finance would need to be physically-backed and allocated to the underlying asset, according to a draft of a standard for Shariah gold being developed. “We are almost there” with a final proposal, said Mohd Daud Bakar, a Shariah scholar who is writing the draft for the Accounting and Auditing Organisation for Islamic Financial Institutions, the Bahrain-based industry group that sets Shariah standards in finance.”

    Shariah finance is non-interest based finance. It’s religiously unacceptable to extract interest from others if you are a Muslim – that’s usury, also known as riba. So financial instruments have to be tailored to Islamic communities to ensure that they are not in violation of the Koran. Shariah compliant gold investing will be configured so no precious metals are borrowed, loaned out or earn income. Thus the investor – consumer or institutional – will be confident that the actual gold holding consists of physical precious metals. The bars will be numbered and noted. The only profit to be earned will be based on the value of gold moving up. This will involve physical precious metal purchases, but ETFs can be structured similarly and already have been. The Bloomberg report quoted above indicates the committee formed to develop the Shariah standard is moving fast. It will “meet once more next Sunday and then submit the proposal to AAOIFI’s Shariah Board.” The physical gold backing is the most important aspect and disqualifies COMEX gold futures. However, the Singapore gold contract will qualify as Shariah compliant, according to the Bloomberg analyst. - Dollar Vigilante



    http://www.thedailyeconomist.com/2016/04/islamic-world-and-sharia-banking-will.html
     
  2. solarion

    solarion Gold Member Gold Chaser

    Joined:
    Nov 25, 2013
    Messages:
    3,618
    Likes Received:
    5,472
    Trophy Points:
    113
    I wonder which nations will be acquiring and storing the gold to back this currency. Sure hope they're drone proofed and NATO proofed.
     
  3. Aurumag

    Aurumag Dimly lit. Highly reflective Midas Member Site Supporter

    Joined:
    Mar 31, 2010
    Messages:
    7,201
    Likes Received:
    7,056
    Trophy Points:
    113
    Occupation:
    Lightwave Jockey
    Location:
    State of Jefferson
    Malus, solarion and Ishkabibble like this.
  4. Ishkabibble

    Ishkabibble Gold Member Gold Chaser

    Joined:
    Nov 4, 2011
    Messages:
    2,822
    Likes Received:
    4,170
    Trophy Points:
    113
    solarion likes this.
  5. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

    Joined:
    Mar 31, 2010
    Messages:
    131,896
    Likes Received:
    38,216
    Trophy Points:
    113
  6. Malus

    Malus Gold Chaser Platinum Bling

    Joined:
    Mar 31, 2010
    Messages:
    3,385
    Likes Received:
    2,802
    Trophy Points:
    113
    Occupation:
    irrelevant
    Location:
    In a world gone mad....
    Thats a sweet piece. I'd get one.....
     
  7. solarion

    solarion Gold Member Gold Chaser

    Joined:
    Nov 25, 2013
    Messages:
    3,618
    Likes Received:
    5,472
    Trophy Points:
    113
    Could do without all the goofy hieroglyphics on it, but the color is pretty sweet!

    It'd be funny if it translated to "Muammar's revenge".
     
  8. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

    Joined:
    Jan 7, 2011
    Messages:
    11,241
    Likes Received:
    8,844
    Trophy Points:
    113
    Location:
    Florida
    I want to open a Christmas Club account in one of their banks.
     

Share This Page