Gold Rally Might Spike Following Sharia Law Revamp

Business, Financial

Many of the Muslims countries in the world are governed by Sharia law and the law prohibits gold from being used as an investment. A huge number of Muslims can own gold but not speculate on it for future returns. The fact that there is nothing clear in the law made things even more complicated. But things are about to change soon enough.

Representational Image Courtesy newsmax
Representational Image Courtesy newsmax

AAOIFI (Auditing Organization for Islamic Financial Institutions) sets the standards for investment based on Sharia law and it currently drafting a guideline along side WGC (World Gold Council. Once drafted, the new guideline might open the doors for Muslims investors to trade gold as a commodity. Member of AAOIFI, Yusuf DeLorenzo said in a statement, “The hesitation about investing in gold when credible Sharia standards are unavailable is nearly universal in the Islamic world. On the reverse side of the equation, however, gold has historically been the choice of individual Muslims desirous of preserving wealth and value.”

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Soumyajit DasMazumdar
Soumyajit is an SAP technical consultant with a flair for writing. An avid blog reader, he started off with a free WordPress blog and slowly moved to his own personal news and blog site. Apart from writing he loves reading books, playing table tennis and long bike trips. He is currently trying to learn playing guitar and failing miserably.

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