Author Topic: About the phenomenon "Islamic Gold Dinar and Silver Dirham"  (Read 2200 times)

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Offline Shahanshah

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About the phenomenon "Islamic Gold Dinar and Silver Dirham"
« on: December 05, 2011, 06:17:46 PM »
Recently (or not so recently) there is this social phenomenon,calling for the revival of a Quranic coinage...

It started with some mosques, and by the YouTube videos I have seen, people can bring money to the mosque(?) and get their coins struck instantaneously.

And then the Malaysians followed, but it smells just like another "gold bullion" program. (as ringgit did not go thru disastrous collapse like rupiah did)

Disregarding religion, it's financially sane for someone to turn back to gold and silver if fiat money in his country is inflating too much, this happens all around the globe.

So can we post more info about this "dinar and dirham revival?"

Offline andyg

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Re: About the phenomenon "Islamic Gold Dinar and Silver Dirham"
« Reply #1 on: December 05, 2011, 07:08:29 PM »
This has been going on across the world since 2008 - just look at the gold prices.
Investors have been investing in gold, buying up supplies - this then creates a shortage pushing the price up further - so investors think that it is a good investment and buy even more.
Eventually someone will realise that gold doesn't have an awful lot of use other than looking shiny.
always willing to trade modern UK coins for modern coins from elsewhere....

Offline Figleaf

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Re: About the phenomenon "Islamic Gold Dinar and Silver Dirham"
« Reply #2 on: December 06, 2011, 12:04:01 AM »
We have had a disruptive discussion on this forum on whether these thingies were coins. To sum it up, in Malaysia, they are produced by a tourist trinket making company. The Malaysian states mentioned on the little yellow slices do not have the right to issue their own money.

My impression is that the "phenomenon" is almost exclusively a press hype that dies painfully slow as journalists copy each other's stories.

Something different is people buying gold as a hedge against inflation. The reasoning is that gold will keep its value even in the worst of times. However, gold is unproductive and it doesn't give a return. While you can make a profit (or loss) by buying gold, it is a risky asset to hold. If you want to protect your capital against inflation with much less risk, buy linkers. If you cannot, buy REITs. Both are liquid, give a return and offer a degree of protection against inflation. If you cannot, buy a home. It can go down in value also and it is illiquid, but at least it will give you shelter in bad times, it gives you a return and it should give you some protection against inflation.

Rising metal prices make people melt coins. Most will have little numismatic value, but accidents happen. I prefer normality.

An unidentified coin is a piece of metal. An identified coin is a piece of history.