Gold now accepted as an investment in Islamic finance

A new standard approved by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and the World Gold Council (WGC), for the first time, sets specific rules for the use of gold as an investment in the Islamic finance industry. 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.   Until now, there have been no such rules. The new standard allows investment in gold provided that all the relevant Shari’ah rulings are satisfied.