Islamic Finances are based on the Shariah Law. For instance, riba or charging interests is forbidden. To determine if a financial product is Shariah compliant banks and institutions have to establish a Shariah Supervisory Board (SBB) to make sure that the activity comply with the
AAOIFI.
Now the big news: recently the AAOIFI in collaboration with the World Gold Council and Amanie Advisors has approved what will become known as the Shariah Gold Standard. This is a guide to include gold-based products in Islamic Finance. Check out the following infographic. The summary is at the end of the post.
Now it will be OK for a muslim who wants to follow Islamic Finances to invest in vaulted gold, gold savings plans, gold certificates, physical gold ETFs and even gold mining shares.
