Islamic finance authority approves investment in gold
The metal joins equities, real estate, Islamic bonds and insurance
Dubai — Gold is acceptable for the first time as an investment in Islamic finance, after the group that sets standards for the industry adopted Sharia-compliant rules for trading the metal. The rules approved in November allow gold to be used in the $1.88-trillion Islamic finance business, the Accounting and Auditing Organisation for Islamic Financial Institutions said on Monday in a statement. The organisation developed the standards with help from the producer-funded World Gold Council, which has said the new rules could spur demand for "hundreds of tonnes" of gold. "This is a ground-breaking initiative for Islamic investors and for the gold industry at large," Aram Shishmanian, CEO of the World Gold Council, said in the joint statement. "We are delighted that there is now definitive Sharia guidance on the permissability of investing in gold." Gold joins equities, real estate, Islamic bonds (sukuk) and takaful (insurance) as vehicles approved for Islamic finance, according to the ...
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