Gold Accepted Into Islamic Standard Finance | The Mesh Report

Gold Accepted Into Islamic Standard Finance

Mike Hammer December 6, 2016 0

This is a really big deal.  The the Accounting and Auditing Organization for Islamic Financial Institutions adopted Shariah-compliant rules for trading gold.  This means Islamic banks can use gold to satisfy asset requirements for audit compliance, opening up a whole new source of demand for gold.  The Gold Enthusiast doesn’t expect to see an immediate price bump from this. It will take some time for banks to fully understand how to satisfy applicable Shariah compliance rules, primarily Zakah.  Zakah is one of the five pillars of Islamic faith, and is a religious obligation based on the size of one’s wealth.  In Western raw economic terms we would call this a wealth tax.  We’ll no doubt be reporting more on this in the future.

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