Monday, 20 April 2009

Gold Dinar : The Heaven's Currency Part 1


Book : Gold Dinar
Writer : M.Luthfi Hamidi
Publisher : Senayan publishing
Focus on : Chapter 4 The Heaven's Currency

" Gold is going to be part of the structure of international monetary system for
the 21st century " - Nobel laureate Robert A.Mundell -

The power of gold in history are beyond questions. Although gold functionally stop as a Money in 1914, the position as medium of exchange are still acceptable due to value it have.

Different from the fiat money gold hardly ever experienced inflation since the government cant produce gold coins or paper money(back up by gold) without
restrictions because gold are scarce and limited.

The value of gold rely on market price/current price, gold are independent aset which the value cant be manipulate or change by any political-goverment desicion. The past performance of gold stability as a money have proven that gold only fluctuate 4 times in between 1792 - 1972. After the collapse of bretton woods system the price of gold fluctuate up until now for the reason that gold at this time are classified as commodities.

Gold stability, this quality should be use as a medium of exchange / money rather than as a commodity. Greenspan before he became governor of The Fed said that " gold and economic freedom cant be apart, indeed the gold is the instrument of justice in the laissez faire (free market)".

Despite the fact, more than few 'people' however hesitate about advantages of gold particularly the potential as exchange currency due to the fact that gold also can be expose to manipulation. This is true, but compare to other currency, gold are not easy to manipulate because nobody willing to sell their gold below the market price!.

Study of gold trading market in New York from 1999 - 2003 by Speck varified that only in September 1999 there is apparent gold manipulation when the price of gold dropped as a result of Washington agreement proposed by the Central bank which Speck come to conlusion that the main reason to do that is to weaken the gold as competitor of the dollar, bonds and fiat money in general.

"If you have to choose between trusting to the natural stability of gold and the honesty and intelligence members of the goverment, and with due respect for these gentlemen, i advise you, as long as capitalist system last, to vote gold "
- george bernard shaw -


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2 comments:

Azman said...

buku ni bahasa indinesia ke min?

Ordinary Girl said...

You'd be surprised, the Quran speaks with much authority on the use of Gold and Silver (an valuables) as money.

The Prophet s.a.w was quoted saying the following:

"A time is certainly coming over mankind in which there will be nothing [left] which will be of use save a dinar and a dirham."

Abu Bakr ibn Abi Maryam reported that he heard the Messenger of Allah s.a.w, say: