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Now Muslims can help bullion banks undermine gold investments with GLD
Gold Standard Approved for Islamic Finance, Opening New Market
By Claudia Carpenter
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.
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Market Analyst Fabrice Taylor Expects K92 Shares to Rise
as Company Commences Gold Production and Gains Cash Flow
Interviewed on Business News Network in Canada, market analyst and financial letter writer Fabrice Taylor said shares of K92 Mining (TSXV:KNT) are likely to rise, even amid declining gold prices, because the company has begun producing gold at its mine in Papua New Guinea:
Taylor cited the company's announcement here:
The SPDR Gold Trust, the biggest exchange-traded fund backed by bullion traded under stock symbol GLD, will probably qualify, and the standard may open new demand to central banks, Mohd Daud Bakar, a Shariah scholar, said at a press conference in Dubai today. Comex gold futures wouldn't qualify because of a physical backing requirement, he said.
"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. ...
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