posted by Christopher W. Holton
It is frustrating and amazing to observe the lengths that Western business interests will go to in inviting the enemy threat doctrine into our financial system to make a quick buck.
A case in point would be this latest activity by the World Gold Council to work with Shariah scholars (referred to as “advisors” in the world of high finance) to make it easier to conduct transactions involving the yellow metal in a Shariah-compliant way…
The World Gold Council is seeking to create a global standard to make the metal’s use in Islamic finance more cost effective by eliminating disputes among scholars.
The 18-member council and Amanie Advisors issued a consultation draft in November to Shariah professionals and practitioners. The WGC has also held bilateral meetings with banks and investment funds, who say that such a template will lead to more gold-backed products, Natalie Dempster, its London-based managing director of central banks and public policy, said in a Dec. 24 e-mail interview.
As the $2 trillion Islamic finance industry slows and sukuk sales falter, a new standard could be welcomed as differing perceptions of Shariah-compliance in Asia and the Middle East hinder development. Individual scholars currently vet gold products for conformity and Malaysian law firm Lee Hishammuddin Allen & Gledhill says there’s divided opinion on whether the commodity can be used as an underlying asset for Islamic bonds.
