What Is Gold Dinar?

The gold dinar is a coin made of 22K (91.7%) gold, in accordance to Islamic law specifications. It has a specific weight of 4.25g and is just under one inch in diameter. If the gold price is $470 per ounce, the value of one dinar is approximately $58.

Both dinars and dirhams (silver coins) were used by the Muslim world as far back as the time of the second Caliph, Umar (AD 632), until the fall of the Ottoman caliphate in 1924.

By trading with the gold dinar instead of currencies pegged to the greenback. It is believes that international trade would increase, as exchange rates would no longer be subject to arbitrage. Companies would also benefit as there would no longer be the need to hedge financial transactions.

There are companies offering investors the opportunity to invest in gold through the dinar, as well as the possibility of a dinar currency.

These companies promote the use of their dinar, called the Islamic Gold Dinar (IGD), for international trade and among individuals, mainly for the payment of zakat and dowries.

Investors can buy or sell IGDs at the prevailing gold price through appointed distributions called wakala.

The gold coin represented by an international unit used by national banks to settled trade among countries. This ‘virtual dinar’ overcomes the obvious physical limitations of transporting gold coins.

IGD Exchange, which uses the Internet to support the sale and purchase of IGDs. Investors can also buy IGDs from this portal at current gold prices; the difference is that they will have a virtual IGD account in which the company records their gold coin holdings. When selling their holdings, investors can chose between receiving ringgit or the physical gold coins.

The supporting infrastructure behind the IGD exchange allows investors to access their dinars from anywhere in the world. If countries start trading with IGDs, the IGD Exchange acts like an online bank account. You can sell your dinars to a wakala in Dubai and come back here to buy them, using your IGD account.

Investors should note that the IGD Exchange and wakala only accept their own minted coins. It does not accept dinars that come from anywhere else, although they are made to the same specifications.