By Claudia Carpenter Bloomberg News Monday, December 5, 2016
Gold is acceptable for the first time as an investment in Islamic finance after the group that sets standards for the industry adopted Shariah-compliant rules for trading the metal.
The rules, approved Nov. 19, allow gold to be used in the $1.88-trillion Islamic finance business, the Accounting and Auditing Organization for Islamic Financial Institutions said Monday in a statement. The organization developed the standards with help from the producer-funded World Gold Council, which has said the new rules could spur demand for "hundreds of tons" of gold.
"We fully expect to announce imminently that GLD does qualify," Natalie Dempster, a managing director of the World Gold Council, said at the conference. Physical gold bars and coins may also qualify, she said. The rules require that a bank selling gold has to offer same-day settlement or has to demonstrate it can provide the exact gold being sold within one day, Dempster said. The standard also applies to silver, according to Hamed Hassan Merah, secretary general of the Islamic finance group. ...
... For the remainder of the report:
https://www.bloomberg.com/news/articles/2016-...dard-approve... * * *
