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Islam Became Compatible With Gold

Gold and gold-denominated securities have also been accepted in Islamic finance since the industry has put in place regulations that have made products math-compatible. Gold-linked investment fund yes, gold futures can not be honest.

In the Islamic financial world, gold and gold-based investment forms have been recognized since the gold trading industry has adopted legislation that can meet Islamic religious law, the Sunnis, "says Bloomberg.

The Bahrain-based Islamic Financial Institutions Accounting and Auditing Organization (AAOIFI) reported that the necessary rules were adopted on November 19 by the industry. AAOIFI has helped to develop the necessary rules with the help of an international organization founded by producers, the Golden World Council (WGC). According to the WGC, the introduction of new rules could significantly increase demand for gold for investment, even hundreds of tons a year.

According to the new rules, for example, the world's largest, gold-plated stock-exchange basis, SPDR Gold Trust's papers may qualify as "succesful", said Mohd Daud Bakar, a scholar at Dubai's press conference. Gold futures contracts traded on commodity exchanges are not, as there are no physical gold collateral behind them - he added.

We will immediately announce that the papers of SPDR Gold Trust receive the qualification, "said Natalie Dempster, Executive Director of WGC, on the announcement. Golden coins and gold coins can also obtain the required rating. A bank can trade gold on the basis of the rules, if it is able to count on the buyer or the seller physically within a day's time to buy and sell gold.

The new rules also apply to silver trading, "said Hamed Hassan Merah, Secretary-General of AAOIFI.

According to the AAOIFI statement, gold has joined in with other forms of investment already accepted in Islamic finance. So far these were shares, real estates, bonds (sukuk) or special guarantees (takaful).

Last year, the stock market reached 1.4 percent, after the Malaysian central bank ceased its short-term embankment program.


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