This Standard will provide guidance from the Shari’ah perspective on the usage of gold in financial and investment transactions for Islamic financial institutions and participants
The Royal Mint has become the first mint worldwide to achieve compliance with the Shari’ah Standard on Gold for retail sales of its gold and silver bullion coins and bars, enabling it to serve an even wider audience of investors via trading site www.royalmintbullion.com. The move is part of the organization’s strategy to be seen as the ‘complete bullion solution’ – offering a comprehensive range of bullion products that are suitable for a variety of investors.
Chris Howard, Director of Bullion for The Royal Mint said:
“The recent introduction worldwide of the Shari’ah Standard on Gold has enabled The Royal Mint to take the next logical step in the expansion of its ‘complete bullion solution’. Shari’ah compliance allows us to make Royal Mint bullion accessible to a wider variety of investors at a time when Islamic investment is experiencing rapid growth in the UK and worldwide.”
Royal Mint bullion has been endorsed as Shari’ah-compliant by Shari’ah advisory organization Amanie Advisors, in accordance with the Shari’ah Standard on Gold. This standard is set by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and has been developed in co-operation with the London-based World Gold Council (WGC).
In order to achieve the endorsement, The Royal Mint has undergone scrutiny of the ways in which it markets and charges for its bullion. There has been no need for any change to The Royal Mint’s bullion product range in order to accommodate the new Shari’ah-compliant status, however, which applies to Royal Mint gold and silver bullion coins and bars, as well as Signature Gold™ – the simple and cost-effective service that enables investors to own fractions of a 400oz gold bar based on value rather than weight.
“The growth in Islamic investment globally and the clarification of how gold and silver can be included within it could drive upwards of $20bn of investment in gold over the coming years. This is a great time for The Royal Mint to be playing its part in attracting Islamic investment to the UK, by securing Shari’ah-compliant status for its bullion products” said Chris Howard.
Shari’ah-compliant gold and silver bullion is now available on The Royal Mint’s trading website www.royalmintbullion.com. The site gives customers the opportunity of buying, storing and selling The Royal Mint’s bullion coins and bars quickly and securely, 24 hours a day, 365 days a year. The Vault™, The Royal Mint’s on-site storage facility has been welcomed by investors looking for a highly secure storage option.
In order to achieve compliance with the Shari’ah Standard on Gold for its bullion products, The Royal Mint has been working with the Shari’ah Supervisory Board of Amanie Advisors. The Shari’ah Standard on Gold was set by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and developed in cooperation with the London-based World Gold Council (WGC).
The Shari’ah Standard on Gold sets out guidelines on the marketing of gold and silver in financial and investment transactions for Islamic financial institutions and investors.
Amanie Advisors is a Shari’ah advisory firm specializing in Islamic finance solutions covering a wide range of services including Shari’ah advisory and consultancy, training and research & development for institutional and corporate clientele focusing on Islamic financial services.
According to the World Gold Council’s website……..
“The Standard deals with the Shari’ah rulings for gold in its various forms and categories, the Shari’ah parameters for gold transactions and the rulings for gold-based financial products in institutions.
The Standard will, for the first time, set specific rules for the use of gold as an investment in the Islamic finance industry. Until now, there have been no such rules. The new Standard shows that investment in gold is permissible provided that all the relevant Shari’ah rulings are satisfied, including those relating to taking possession of gold and the proper calculation of zakat (see below).”
Zakat (Arabic: زكاة) is a form of alms-giving treated in Islam as a religious obligation or tax. Zakat is the compulsory giving of a set proportion of one’s wealth to charity. It is customarily 2.5% of a Muslim’s total savings and wealth above a minimum amount known as nisab, but Islamic scholars differ on how much nisab is and other aspects of zakat. The collected amount is paid first to zakat collectors.
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