Showing posts with label Gold Coin. Show all posts
Showing posts with label Gold Coin. Show all posts

History of Dinar

Posted by Admin , Labels: , Saturday, February 16, 2013 7:51 AM

In the beginning the Muslims used gold and silver by weight and the dinar and dirhams that they used were made by the Persians.

The first dated coins that can be assigned to the Muslims are copies of silver dirhams of the Sassanian Yezdigird III, struck during the Khalifate of Uthman, radiy'allahu anhu. These coins differ from the original ones in that an Arabic inscription is found in the obverse margins, normally reading "In the Name of Allah". Since then the writing in Arabic of the Name of Allah and parts of Qur'an on the coins became a custom in all mintings made by Muslims.

Under what was known as the coin standard of the Khalif Umar Ibn al-Khattab, the weight of 10 dirhams was equivalent to 7 dinars (mithqals)

In the year 75 (695 CE) the Khalifah Abdalmalik ordered Al-Hajjaj to mint the first dirhams, thus he established officially the standard of Umar Ibn al-Khattab. In the next year he ordered the dirhams to be minted in all the regions of the Dar al-Islam. He ordered that the coins be stamped with the sentence: "Allah is Unique, Allah is Eternal". He ordered the removal of human figures and animals from the coins and that they be replaced with letters.

This command was then carried on throughout all the history of Islam. The dinar and the dirham were both round, and the writing was stamped in concentric circles. Typically on one side it was written the "tahlil" and the "tahmid", that is, "la ilaha ill'Allah" and "alhamdulillah"; and on the other side was written the name of the Amir and the date. Later on it became common to introduce the blessings on the Prophet, salla'llahu alayhi wa sallam, and sometimes, ayats of the Qur'an.

Gold and silver coins remained official currency until the fall of the Khalifate. Since then, dozens of different paper currencies were made in each of the new postcolonial national states created from the dismemberment of Dar al-Islam.

Allah says in the Qur'an: And amongst the People of the Book there are those who, if you were to entrust them with a treasure (qintar), he would return it to you. And amongst them is he who, if you were to entrust him with a dinar would not return it to you, unless you kept standing over him. Qur'an (3,75)

Qadi Abu Bakr Ibn al-Arabi, the greatest authority on Qur'ânic Law wrote in his famous "Ahkam al-Qur'an" about this ayat:

"The benefit that can be taken from this is the prohibition of entrusting the People of the Book with goods".

Qadi Abu Bakr said: "The question concerning entrusting property is legislated by the text of Qur'an." This means that the ayat is a legal judgement of absolute validity and of the greatest importance to the deen.

Entrusting wealth to non-Muslims is not allowed, but furthermore, taking a non-Muslim as a partner outside Dar al-Islam (where we stand over them) is extremely restricted, because they might cheat or might use our wealth in forbidden transactions.

Since paper-money is a promise of payment, can it be permitted to trust the issuers while they hold the payment (our property) outside our jurisdiction? History has also demonstrated repeatedly that paper money has been a permanent instrument of default and cheating the Muslims. In addition, Islamic Law does not permit the use of a promise of payment as a medium of exchange.

Gold and silver are the most stable currency the world has ever seen

From the beginning of Islam until today, the value of the Islamic bimetallic currency has remained surprisingly stable in relation to basic consumable goods:

A chicken at the time of the Prophet, salla'llahu alaihi wa sallam, cost one dirham; today, 1,400 years later, a chicken costs approximately one dirham.

In 1,400 years inflation is zero.

Could we say the same about the dollar or any other paper currency in the last 25 years?

In the long term the bimetallic currency has proved to be the most stable currency the world has ever seen. It has survived, despite all the attempts by governments to transform it into a symbolic currency by imposing a nominal value different from its weight.

Reliability

Gold cannot be inflated by printing more of it; it cannot be devalued by government decree, and unlike paper currency it is an asset which does not depend upon anybody's promise to pay.

Portability and anonymity of gold are both important, but the most significant fact is that gold is an asset that is no-one else´s liability.

All forms of paper assets: bonds, shares, and even bank deposits, are promises to repay money borrowed. Their value is dependent upon the investor's belief that the promise will be fulfilled. As junk bonds and the Mexican peso have illustrated, a questionable promise soon loses value.

Gold is not like this. A piece of gold is independent of the financial system, and its worth is underwritten by 5,000 years of human experience. 

Credit for :  allaahuakbar.net

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The World’s Largest Gold Coin

Posted by Admin , Labels: , , Monday, February 11, 2013 3:28 PM



The Royal Canadian Mint unveiled a welcome addition to any piggy bank, a monster gold coin with a face value of $1 million that it says is the world’s biggest, purest and highest denomination coin.

Weighing in at 100 kilograms (220.5 pounds), the limited edition coin easily dwarfs its closest rival, the 31 kg (68 pound) “Big Phil”, which was made to honour the Vienna Philharmonic Orchestra and has a face value of a mere 100,000 euros (C$150,000).

Originally designed to promote the new one-ounce coins, the colossal 100 kg coins will be produced in a very limited quantity. A U.S. precious metals distributor has ordered three and there is interest in Asia and Europe, the mint said. “We compete for market share with all of these countries and we decided that the time was right to do something to stand out from the crowd once again.”

Source: Reuters

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Islamic Dinar and Dirham

Posted by Admin , Labels: , Tuesday, January 1, 2013 7:52 AM

Many people think that the Iraqi dinar and so forth are the same as the Islamic Dinar. So should I make a very clear explanation that the Iraqi dinar and the like are not the same and not the Islamic Dinar. Iraqi Dinar is the currency of plain paper, while the Islamic Dinar is a 22-carat gold coins 4:25 grams.

Further, for we know the Islamic Dinar is closer, here I take the description of the book Muhaimin Iqbal "Mengembalikan Kemakmuran Islam Dengan Dinar dan Dirham" (Restoring Prosperity With Islamic Dinar and Dirham) explaining details about the Islamic Dinar.

Money in its various forms as a medium of exchange trading has been known for thousands of years ago like in the history of ancient Egypt around 4000 BC - 2000 BC. In a more standard form of gold coins and silver was introduced by Julius Caesar of Rome circa 46 BC. Julius Caesar is also introducing a standard conversion of gold into silver, and vice versa with a ratio of 12: 1 for silver against gold. Standard Julius Caesar is valid in the European world for about 1250 years until the year 1204.

Elsewhere in the Muslim world, gold and silver money, known as Dinar and Dirham is also used since the beginning of Islam both for activities and worship muamalah like zakat and diyat until the end of the Turkish Ottoman Caliphate in 1924.

Standardization of Dinar and Dirham weight of money following the Hadith Prophet Muhammad, "Scales are scales Mecca residents, and the dose is the dose people of Madinah" (Narrated by Abu Daud).

At the time of Caliph Omar bin Khattab about the year 642 AD in conjunction with the first printing in the Ottoman dirham currency, the standard weight of the relationship between gold and silver money that is standardized weight of 7 dinars equal to the weight 10 Dirham.

Weight 1 Dinar is equal to 1 mitsqal or roughly equivalent to the weight of 72 medium-size grains of wheat which cut both ends. From Dinar Dinar-stored in the museum after the scales are weighed accurately with the known fact that the balance weight 1 Dinar Islamic money issued at the time of Caliph Abdul Malik bin Marwan is 4:25 grams, the weight is equal to the weight Byzantine currency called Solidos and eye Greek currency called Drachmas.

On the basis of the formula weight relationship between the dinar and the dirham and the dinar weighing in this museum, it can also be calculated weight of 1 dirham is 7 / 10 x 4.25 gram or equal to 2975 grams.

Until the mid 13th century both in Islamic countries or in non-Islamic country's history shows that gold currencies are relatively standard widely used. This is not surprising because since the beginning of its development-even the Muslims many trade travel to a distant land. Diversity in the European currency later began when the Republic of Florence in Italy in 1252 to print his own money is called the gold Florin, followed by the Republic of Venice with his money, called Ducat.

In the late 13th century it started to spread Islam Europe with the establishment of the reign of Ottoman history and the milestones achieved in 1453 when Muhammad Al Fatih conquered Constantinople, and of unification of the entire power Ottoman Caliphate.

For seven centuries from the 13th century until the early 20th century, Dinar and Dirham is the currency most widely used. Use of Dinar and Dirham covers the whole of Ottoman rule that covers three continents, southern and eastern Europe, northern Africa and parts of Asia.

At the height of glory in the 16th century Ottoman rule and 17 extending from the Strait of Gibraltar in the west (in 1553 reached the Atlantic coast of North Africa) until most of the archipelago in the east, then from some of Austria, Slovakia and Ukraine in the north to Sudan and Yemen in the south. When coupled with previous Islamic heyday from the early prophetic Rasululullah SAW (610) then the whole Dinar and Dirham is the currency used by most modern long (14 century) in human history.

Besides gold and silver, both in Islamic and non Islamic country also known as a coin made of copper or bronze. In Islamic jurisprudence, gold and silver known as the ultimate medium of exchange (thaman haqiqi or thaman khalqi) while the money from copper or bronze is known as the filthy lucre and a medium of exchange based on agreements or thaman istilahi. In terms of nature that has no intrinsic value of its exchange rate, money is closer to the nature of paper money as we know it today.

Dinar and Dirham's been around since before Islam was born, because Dinar (Dinarium) have been used in previous Roman and the dirham has been used in Persia. We know that anything that existed before Islam, but after the decline of Islam is not prohibited or even used by the Prophet Muhammad, then it is a statute (Taqrir) Prophet Muhammad, which means to be part of Islam itself, Dinar and Dirham in this category .

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History of Gold

Posted by Admin , Labels: , Saturday, December 1, 2012 8:41 AM


Gold (Sanskrit jval, Greece χρυσος = chrysos, Latin aurum, an ancient English gold) has been known as a very valuable since the prehistoric era. Egyptian hieroglyphs (2600 BC) said metals and gold have stated several times in the Old Testament (Eng. Old Testament). Exploration of Europe (at the time of European exploration) to the Americas promoted by the various news that stated that gold decoration materials used freely among Native Americans, especially in Central America, Peru, and Colombia.

Gold has long been regarded as the most precious metals, and its value has been used as an expert for many currencies in history. Gold has been used as a symbol of genuineness, high value, sovereignty, and even more so the role of linking these traits.

The main declaration alchemists was to produce gold than other materials, like carbon - possibly through the act of revenge tales with similar material held by the philosopher's stone. Although their efforts have never got results, but experts have raised the interest of alchemy involves elements of the field, which is the principle to the field of chemistry today. Their symbol for gold is a circle with a dot in the middle, which is a symbol of the sun in the field of astrology.

During the period of the 19th, the troop movement caused the discovery of gold-if 'sake only apply when a build-up of gold found, including in California, Colorado, Otago, Australia, Black Hills, and the displacement rollicking Klondike.

Value
As metals other valuable thing, gold is considered by troy weight and if he is compared with other metals rust words used to indicate the quantity of gold present, 24 karat is pure gold. History shows that free gold was used to bolster the currency in gold rating system that was held in which one unit of currency is the same with some heavy amounts of gold. In this system, the kingdom and the central bank tried to guard the gold price by putting the values ​​they want to change with the currency.

For so long gold value placed by the United States at a price of $ 20.67 per troy ounce, but in 1934 this value is set at a price of $ 35.00 per troy ounce. Caused a crisis of gold on a Mac 17, 1968, a scheme for laying the price of two rankings were introduced in which the gold is still more used to manage accounts between nations on the old value of $ 35.00 per troy ounce ($ 1.13 / g) but the price of gold in the market an individual is justified to have fluctuated . In 1975 the two ranking systems is ignored if the gold price is justified to have fluctuated. Since 1968 the price of gold on the open market has been up and down with the breadth, with a record high of $ 850/oz ($ 27.300 / kg) on ​​January 21, 1980, so to record low as $ 252.90/oz (8.131 US$ / kg) on ​​Jun 21, 1999 (Constant London) . The price of gold has risen to $ 500/oz in late 2005, because of shrinkage of the U.S. dollar and inflation due to rising energy costs.

By its usefulness as a savings deposit value, an individual gold ownership is sometimes forbidden. In the United States, an individual gold ownership except as packaging materials or collecting money shilling forbidden from 1933 to 1975.

As a visible resurfacing, gold is sometimes held as a partial rather than a portfolio because of the long-term future of gold has had a long history in determining its value. Gold becomes more attractive in times of low confidence and during hyperinflation because gold is worth perpetuating hollow although if money becomes worthless. Trade contract is based on the presence of gold is now lent by various exchanges around the world.

Gold, in the history of the world economic system, has been known since 40 thousand years before Christ. It was marked the discovery of gold in the form of pieces in Spanish, which was used by paleiothic man. In another of history mentioned that gold was discovered by the ancient Egyptian society (circa) 3000 years BC. Meanwhile, as a currency, gold began to be used in the days of King Lydia (Turkey) since 700 years before Christ. History of the discovery of gold as a means of transaction and the jewelry is then known as the barbarous relic (JM Keynes).

The birth of Islam as a world civilization that brought and distributed the Prophet Muhammad SAW has provided significant changes to the use of gold as currency (dinars) used in economic activity and trade. At the time of the Prophet, set the standard weight of the dinar was measured with 22 carat gold, equivalent to 4.25 grams (diameter 23 millimeters). This standard is then standardized by the World Islamic Trading Organization (WITO), and valid today.

Today, the facts show that there is an imbalance of international trade activity, which occurs due to uneven mastery of world currency, and marked the rampant U.S. dollar. The condition was later compounded by the emergence of the Euro as common currency of European countries. The fact also shows that Muslim countries have very high dependency on both the currency, mainly U.S. dollars. In fact, in current international trade transactions, the U.S. dollar controlled almost 70 percent as a means of world transactions (Azm Zahid, 2003).

With the establishment of the World Trade Organization (WTO) on 1 January 1995 as the implementation of the implementation of the General Agreement on Tariffs and Trade (GATT) and the Uruguay round, then be a consequence of trade liberalization that can not be circumvented. Of course, all countries must be prepared to engage in this global scenario, including developing countries that in fact the majority of Muslims. The big question which then must be answered is how much impact and benefits to be achieved by the Islamic countries in the international market.

The author argues that the idea of ​​the appearance of gold as a tool in international trade transactions is actually an answer to reducing dependence on Muslim countries against the dominance of these two world currencies (U.S. dollars and Euros). In addition, this idea can also be used as a tool to minimize speculation practices, uncertainty, debt, and usury. Especially that had occurred in activity in the money market, where it occurs as a result of the use of paper money (fiat money), so that it becomes a dilemma for Islamic countries. The authors believe, the commitment to use a common currency with the start of trading transactions, will provide many significant benefits.

Mechanism
The use of gold as a tool of international trade transactions can be done through bilateral payment agreements (bilateral payment arrangement) as well as multilateral payments agreement (multilateral payment arrangement). Payment agreement that traded products will go through the stages and mechanisms involving commercial banks, central banks, and custodian of gold (gold storage).

There are four stages in the mechanism through which such transactions. First, the existence of trade agreements between importers and exporters who are in two different countries, with clarity condition of the goods and the amount of goods to be transacted. Of course, in accordance with Islamic law, the contract has to be free from elements gharar, maysir, and riba.

Second, after making a trade agreement, then the importer will issue letters of credit (LC) to make payments through banks that have been designated. Furthermore, the exporter will receive a letter of credit (LC) from the bank. Third, the bank appointed by the importer shall immediately make payment to the central bank by using the local currency, which then accumulate the transaction between the two countries with the gold standard until the clearing.

Fourth, after the clearing is completed, the importer country's central bank will transfer the gold worth of trade transactions between the two countries to the gold custodian who has been appointed, to subsequently handed over to the exporter country's central bank. Exporter country's central bank will now be making payments in local currency to the banks that have been designated by the exporter. Then the banks will turn them over to the exporter.

Above mechanism has obvious advantages compared with using other currencies. The two countries will not experience fluctuations in currency values, which often become barriers to trade transactions. In fact, many facts which indicate that currency fluctuations may result in the destruction of a country's economy. With the same mechanism, the stability of the economy will be more easily achieved, given the relative value of gold is more stable. It is expected, the volume of interstate commerce for Islam to develop. This is where the required role of the OIC and Islamic Development Bank (IDB) in order to formulate a more mature concept of this idea. Political gains will be felt by Islamic countries, because the value of its bargaining power against the West and other forces become increasingly high. Nevertheless, it must be admitted that this mechanism also has weaknesses. The first weakness, the availability of gold is not evenly distributed among Islamic countries, which can cause imbalance and inequality.

The second weakness, the high dependence of the Islamic world against products produced by the countries non-Muslims (read: West), especially on industrial products with high technology. The third weakness, the value of trade transactions is still very little fellow members of the OIC, which causes the significance of gold became less substantive. For that purpose, commitment and sincerity of the leaders of the Islamic world and its government is needed. As the largest Muslim country in the world, it is appropriate that if Indonesia is expected to play a more active, constructive, and productive. Indonesia has an opportunity to encourage the realization of the OIC trade bloc, despite challenges and obstacles are not the least, especially from Western countries through their stooges (IMF and World Bank). 

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