It was only a couple weeks ago when the Auditing Organization for Islamic Financial Institutions
(AAOIFI) began implementation of new edicts regarding gold ownership under Sharia financial law for the world's 1.6 billion Muslims. And in this short amount of time several markets around the globe are already creating new gold based products to help bring in Islamic investors.
New standards for the use of precious metals in Islamic finance are encouraging the development of financial products based on gold and silver, from futures contracts to a mobile app.
Toronto-based Bullion Management Group (BMG), which manages $348 million in assets, launched a silver fund in October and expects its bullion funds will adhere to the new AAOIFI guidance, Nick Barisheff, BMG's founder and chief executive, said.
On Monday, the Singapore Exchange (SGX) said it had certified as sharia-compliant its gold futures contracts, which were originally launched in 2014 and are aimed at the wholesale market.
Meanwhile, Malaysia-based HelloGold has launched a sharia-compliant online platform using a mobile app, targeting customers through agreements with technology and financial services firms, chief executive Robin Lee said.
"We expect to sell about 10,000 ounces of sharia-compliant gold by the end of next year," Lee said. He also said that the firm planned to enter Indonesia, the Philippines and Thailand next year and China by 2019. - Reuters