You are here

Comex gold contracts likely no good for Islamic finance plan

Section: Daily Dispatches

Gold Standard in Islamic Finance 'Almost There' for Submission

By Claudia Carpenter
Bloomberg News
Monday, April 10, 2016

Gold products used in Islamic finance would need to be physically-backed and allocated to the underlying asset, according to a draft of a standard for Shariah gold being developed.

"We are almost there" with a final proposal, said Mohd Daud Bakar, a Shariah scholar who is writing the draft for the Accounting and Auditing Organisation for Islamic Financial Institutions, the Bahrain-based industry group that sets Shariah standards in finance.
The committee, formed to develop the gold standard, will meet once more next Sunday and then submit the proposal to AAOIFI’s Shariah Board, he said in an interview in Dubai on Sunday.

A gold standard stands to boost demand for the metal as most Shariah buyers can only invest in real estate, Islamic bonds and some stocks. Because of the physical backing requirement, Comex gold futures wouldn't qualify to be Shariah-compliant while the Singapore gold contract would, according to Matthew Keen, founder of Evidens Consultancy in Dubai.

"Hundreds of tons" of new demand could be created, said Natalie Dempster, a managing director of the World Gold Council. "The standard would fill an important gap in the market." ...

... For the remainder of the report:


Buy precious metals free of value-added tax throughout Europe

Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries.

Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world.

Visit us at

Join GATA here:

Mining Investment Asia
Wednesday-Friday, April 13-15, 2016
Marina Bay Sands, Singapore

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit: