With gold prices holding support levels over $1350, the markets are preparing for two major events are are sure to skyrocket prices between now and October.
Currently, the primary body on Islamic affairs which sets the framework for Sharia Law is in talks with the World Gold Council to change their long-standing restrictions for Muslims to own gold as an investment. Once these restrictions are lifted, the potential of two billion Muslims entering into the gold sphere would have an even greater impact on the price than what we have seen over time in India where gold is a fundament of the nation's culture.
As a result, the World Gold Council is working with The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and Amanie Advisors to develop a Shariah Standard on Gold. This Standard will provide guidance from the Shariah perspective on the usage of gold in financial and investment transactions for Islamic financial institutions and participants. The Standard also aims to increase transparency and harmonisation regarding the use of gold in various market practices.
We want to create a Standard that meets the requirements of all active participants in the market. The Standard will enable organisations to work more efficiently in creating Shariah compliant gold products, it will enhance access to gold in the Islamic world and it will help to address the liquidity management issues currently facing the industry. - Gold.org
The importance of their plans to issue SDR bonds is that it is a major blow to the U.S.'s control over the global reserve currency and to dollar hegemony, and will give nations who are disgruntled with having to purchase dollars simply to transact in the global economy the power to bypass this method and go through China under a new reserve system using the SDR.