Massive New Gold Customer Base…

At the moment most of the world’s Muslim population don’t, or cannot, invest in gold.  Sharia law considers gold a “Ribawi item” meaning Muslims can’t trade it for future value or for speculation. It can, however, be used as currency or owned as jewellery etc.

The World Gold Council is finalising negotiations with the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI - who set the standards for Islamic financial law) to allow Muslims to trade gold.

According to Casey Research that means, for the first time in 42 years, 1.6 billion people, 32 central banks and 112 billionaires would be free to buy gold from 31 December this year! 

The pent up demand for such a huge number of people with a cultural affinity for gold could well be staggering.

Yusuf DeLorenzo, an AAOIFI member, has said that “The hesitation about investing in gold when credible Shariah standards are unavailable is nearly universal in the Islamic world. On the reverse side of the equation, however, gold has historically been the choice of individual Muslims desirous of preserving wealth and value.”

Speaking of cultural affinity, keep in mind this 1.6 billion gets added to the 2.7 billion Chinese and Indians who already culturally love, value and trust gold beyond all else.

Of course 31 December is hot off the heels of the supposed US Fed rate hike too, the odds of which last night surged to 80%…  We all know what happened in January this year after the last Fed rate hike in December 2015….