The prospect of the precious metals market could set an absolutely new path in December 2016 because of the new "Gold standard" in the Sharia law. The financial and personal lives of Muslims are guided by Sharia law, which doesn't allow to trade gold for the future value, interests or speculation.
The gold as a ribawi item can be sold only on weight and measure and used as a jewelry, but not as a prosperity. However, there has been a need for clarification for how gold bullion can be used for investment purposes by Muslims for a long time. Islamic investors have always had access to the gold market through jewelry and coins, this guidance will vastly increase the number and diversity of investment products available.
The possibility of many potential Muslim investors has been limited because this law and it could be a revolutionary change for the precious metals market if the Sharia gold standard will be developed. This upcoming clarification could open the gold market to millions Muslims under Sharia law and also causes a further spike in gold price.
Historically Islamic financial market has had an important international influence, even the investors have had access to the gold market only through jewelry and coins, this change will let Muslim market become much more powerful. For this reason, it is not a surprise, that, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the World Gold Council have approved a ground-breaking initiative, that will become known as the “Sharia Gold Standard”. The Islamic world will play an increasingly important role for the gold price demand, which has been structured by Western ideas for a long time. Most people don’t realize how rare gold really is, but the fact is there are only 6.4 billion ounces of aboveground gold on the planet, so millions of the potential new buyers can bring a lot of competition to the market game. Muslim investors will be able to take an advantage of the increasing back of range and bring a lot of competition into the investment world.
Due to the global reports in 2015 China was the largest gold buyer (average number of sold gold is 1,000 tons). Since gold has a long history with Muslims — as a currency and store of wealth — it’s expected Muslim investors will quickly embrace gold investment products such as coins, bars and include gold savings plans, gold certificates, certain gold futures and gold mining stocks in their financial goals.
This new law would set a future path for gold products and put a real pressure on metals as they would become more expensive. Due to the general economy situation in the world the most banks have added gold to their reserves since the financial crisis of 2007/2008. But currently there are still two Muslim countries (Turkey and Saudi Arabia) that included in the top 20 of the world’s gold reserve holdings and they will definitely try to get as much value as they can for their fund.
The investment analytics all around the world announce that it’s not unreasonable to expect a good bump up in the gold prices as soon as Wall Street prepares for the annual Federal Reserve meeting. These last weeks are considered to be very intense and changing for industrial metals dynamic. For this reason, we here at Bullion Exchanges believe this is a really great time to add value to your profitable precious metals portfolio and buy old before it will be additionally appealing on the Muslim market. We offer a great selection of Gold products, including the latest 2017 releases at low prices. Also, you can go through our selection of Silver products for being able to diversify your portfolio with the silver bullion and be sure that your collection is secured from all sides and will no longer be under raising prices impact.
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