Here’s one reason for a gold currency you might have missed: the Sharia commands it.
That’s why Malaysian Muslims are celebrating plans by the state government of Kelantan to introduce an alternate gold currency.
About 1,000 shops and restaurants in the state have said they will accept the new currency, which follows an earlier issue of gold dinars in 2006. The coins comply with traditional Islamic teaching on the use of coins with intrinsic value as a medium of exchange, rather than paper money.
The launch was lauded by the Muamalah Council, a campaigning organisation that seeks the peaceful introduction of an Islamist social and economic system. The council said it was “the main Islamic event of the last 100 years“.
The coins will also serve as a check against inflation for Malaysia’s poor. One gold dinar will go for M$581 ($183) and one gold dirham will cost M$13 ($5).
Guess what this does to the global gold demand. Check out a fantastic presentation on gold prices –>
Business Insider Emails & Alerts
Site highlights each day to your inbox.