Jump to content
House Price Crash Forum
Sign in to follow this  
Old Nis

Islamic Dinar & Durham

Recommended Posts

https://www.e-dinar.com/html/1_2.html

According to Islamic Law...

The Islamic Dinar is a specific weight of 22k gold (.917) equivalent to 4.25 grams.

The Islamic Dirham is a specific weight of pure silver equivalent to 3.0 grams.

Umar Ibn al-Khattab established the known standard relationship between them based on their weights: "7 dinars must be equivalent to 10 dirhams."

You can buy the actual thing in Dubai and Malaysia, according to the website.

Now I'm not a Muslim, but as I sat in my air-conditioned dustbin with a calculator, I started working out what this meant for the price of silver. I made some assumptions; 1) that the above relationship came to pass, 2) that gold drives the price of silver and not vice-versa, 3) that no other market forces altered the price.

Pretty strong assumptions, admittedly, but we're only talking theory here. However, using the spot price of gold for 26/6 from Baird's website to be £571.394 per troy oz and taking the above as a mathematical formula, then I reckon the price of silver, on the above relationship, should be

Silver per troy oz = £ 519.413 ex VAT. Per Kg, £ 16700

Hmmmmmm.......

Anyone want to check my arithmetic or comment on this in any way?

Share this post


Link to post
Share on other sites

Sounds like the old Islamic lawyers got their sums wrong!!!

These have been around for a few years, never seen anything real except dodgy puff sites.

Share this post


Link to post
Share on other sites

Umar Ibn al-Khattab was around the year 650 AD though. Long before the great silver finds in the new world and the extraction of silver from base metal mining. Silver was much rarer then, what matters though is how easy it is to get now. Otherwise we are back to a fiat system saying that silver is worth such and such a percentage of gold, when it isn't, only supported by a law. All that would happen is silver would flood into the currency zone and gold would flood out.

Share this post


Link to post
Share on other sites
Umar Ibn al-Khattab was around the year 650 AD though. Long before the great silver finds in the new world and the extraction of silver from base metal mining. Silver was much rarer then, what matters though is how easy it is to get now. Otherwise we are back to a fiat system saying that silver is worth such and such a percentage of gold, when it isn't, only supported by a law. All that would happen is silver would flood into the currency zone and gold would flood out.

That's a very good answer, Thod. I couldn't see how they could fix the price of silver and you have confirmed that it couldn't be "mandated" to be a certain price. I agree that the price of either silver or gold would alter until the same equilibrium occurred as on the open market.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   295 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.