Saturday, June 4, 2011

Gold Dinar assets and saving; a beneficial and profitable investment. (Part 1 of 3)

Assalamualaikum wbt.

What are you going to do with your deposits in the banks? People tend to save money for emergencies, they save money for their children, they save money for retirement and they save money in order to enjoy life to a greater degree. At the same time these people do hope more than just saving and seeing their money sits there unchanged after 25 years of waiting. It is a good thing that the money is not leaked elsewhere, however how are we going to have a maximum return out of the efforts we have invested throughout the years? Does 0.2% to 3.00% dividend seems worth a wait? How about something better, something that could promise you an average of 27% increase every year? Don’t you want your saving to be as good as an investment?  If you do, then acquire gold now. But before we grow fonder of gold let us have a better understanding why we must acquire gold. Acquiring Gold Dinar as a personal asset and savings is beneficial as it is recognized as divine money in Islam, undeniable potential as precious commodity, and promise financial stability and security.

The first reason why it is beneficial is because Gold Dinar is recognized as divine money in Islam. Gold is a commodity that has been extensively traded for centuries and become the medium of exchange. As Islam appears in the best of everything surely gold doesn’t miss the attention. Gold Dinar is considered a valuable merchandise that is accepted as Syariah Money (Mohamad, 2009). During the Rasulullah’s time, it has already been mentioned and commonly used as an exchange just like other commodities such as dates and salt. According to Mohamed, N.M. (2009), it had reached an utopian scale during the Caliphate of Umar Abdul Aziz (99H) and during this time there were no persons who were eligible to receive zakat, which suggest the achievement of such high status welfare and economic well-being. Mohamed, N.M. (2009) also stated that during the time of Caliph Harun al-Rashid (170H) death, the assets of Baitulmal reached RM 180 billion. That is 1300 years ago and compared to the economic level nowadays it is still unimaginably hard for a country to achieve the same level of accomplishment. This reflects to us that gold dinar play a very important role not only as a very effective mechanism in economy but also a beacon of bless from Allah. One of the main component reasons is because during that time people pay zakat using Dinar which in Syariah, it is considered a compliant-method to pay zakat (Vadillo, 2002). With gold circulated in the economy, it flourished and blessed people at that time with divine wealth.

The word ‘Dinar’ is mentioned by Allah in Quran (Shah, Alrazi, & Abdul Hamid, 2004) in surah Aali-Imran, 3:75, (Al-Quranul Karim, 2005);
“Amongst the People of the Scripture (i.e, the Torah) there are those who if entrusted (by fellow Israelite) with a Qintar (a treasure of money such as a heap of gold coins) for safe-keeping, would return it upon demand. Yet amongst them there are those who if entrusted (by a Gentile, i.e. one who was not an Israelite) with a single Dinar (a gold coin) for safe-keeping, would not return it on demand unless the owner were to persist in demanding the return of his property. The reason for this (double standard) is because they argue that the (religious law) placed no obligation on them to be just and fair in their dealings with Gentiles. But they lie against Allah (Most High), and they know full well (that it is a lie).”

In this verse of the Quran Allah Most High has referred to ‘money’ as ‘gold’ coins. It is firmly located in Allah’s creation and possesses value assigned to them by Allah Himself who is the creator of wealth. In another verse Allah also refer gold as wealth, and such wealth could be used as money in the form of gold Dinar. 

“Beautified for men is the love of things they covet; women, children, much of gold and silver (wealth, Dinar and Dirham), branded beautiful horses, cattle and well-tilled land. This is the pleasure of the present world's life; but Allah has the excellent return (Paradise with flowing rivers, etc.) with Him.” (Aali Imran, 3:14), (Al-Quranul Karim, 2005)

Above is the description from Allah of the wealth that human would normally invested in which states the word gold as respect to Dinar. He is the Creator of Wealth and what reasons do we have to rely on if we deny the very advice of the supreme economic advisor, Allah? Acknowledgement in Quran means that Allah put some recommendation, benefit and urge for Muslims to follow it as it is our source of constitution. This includes the way we select our currency and investment. Our action will be the symbol of obedience and adherence to the commands of Allah Taala and Rasulullah p.b.u.h. The extension and realisation of our obedience to Allah and Rasulullah is by ultimately doing what they ask us to do. 

“Abu Bakr ibn Abi Maryam reported that he heard the Messenger of Allah, may Allah bless him and grant him peace, say: "A time is certainly coming over mankind in which there will be nothing [left] which will be of use save a dinar and a dirham."  (The Musnad of Imam Ahmad ibn Hanbal).

Rasulullah had say in his hadith that when the time comes we must save dinar (gold) and dirham (silver). If we are obedient we will surely follow him. After all, we are seeking both the happiness in the world and also in the hereafter; whatever we do in this world can’t only be single viewed only as a worldly profitable investment but also must comprise the spiritual aspect.