By Jeff Berwick, The Dollar Vigilante
You won’t find any mainstream articles on the Jubilee Year’s secret timeline for financial ruin. Hell, you won’t even find alternative media articles on it – except here at TDV. But that doesn’t mean people aren’t aware of what’s going on. In this case, the top money men in the Middle East are racing to get gold approved as a Shariah compliant asset.
You can bet the smart Middle Eastern money is getting ready to hit the yellow metal hard. The demand may contribute to the gold market’s already significant buoyancy this year – as Middle Eastern buyers jump into considerable tonnage as soon as possible.
Middle Eastern sheiks are well aware of what’s “going down” in this year of destruction. They actually have a front row seat to it. And, they are surely eager to realign financial vehicles around gold and potentially silver.
Yes, they know the reality of 2016: What’s going to be left standing when the Jubilee dust clears? Precious metals, child. Precious metals.
“Shariah-compliant gold demand may be `hundreds of tons’ … Gold products used in Islamic finance would need to be physically-backed and allocated to the underlying asset, according to a draft of a standard for Shariah gold being developed. “We are almost there” with a final proposal, said Mohd Daud Bakar, a Shariah scholar who is writing the draft for the Accounting and Auditing Organisation for Islamic Financial Institutions, the Bahrain-based industry group that sets Shariah standards in finance.”
Shariah Finance: What It Is
Shariah finance is non-interest based finance. It’s religiously unacceptable to extract interest from others if you are a Muslim – that’s usury, also known as riba. So financial instruments have to be tailored to Islamic communities to ensure that they are not in violation of the Koran.
Shariah compliant gold investing will be configured so no precious metals are borrowed, loaned out or earn income. Thus the investor – consumer or institutional – will be confident that the actual gold holding consists of physical precious metals. The bars will be numbered and noted. The only profit to be earned will be based on the value of gold moving up. This will involve physical precious metal purchases, but ETFs can be structured similarly and already have been.
The Bloomberg report quoted above indicates the committee formed to develop the Shariah standard is moving fast. It will “meet once more next Sunday and then submit the proposal to AAOIFI’s Shariah Board.” The physical gold backing is the most important aspect and disqualifies COMEX gold futures. However, the Singapore gold contract will qualify as Shariah compliant, according to the Bloomberg analyst.
Bloomberg quotes Natalie Dempster, a managing director of the World Gold Council, as saying: “Hundreds of tons of new demand could be created.” Right now Shariah buyers “can only invest in real estate, Islamic bonds and some stocks.”
The Shariah standard is said to be set for public hearings later this year in Morocco and Dubai and maybe Indonesia or Malaysia.
By then, given what’s going on, gold should be moving briskly against fiat’s defaulting currencies. Even if central banks do manage to prop up fading currencies, precious metals purchases should continue strong. How are banks around the world going to control their vast debts? They can’t. Italian banks are going under right now. Italy itself may soon follow. And Greece too. Sovereign debt is increasingly unmanageable.
It’s all part of the Jubilee plan, and if you haven’t read about, well … you should.
Please Educate Yourself About Jubilee 2016 And Its Destruction
The ONLY place to find out about it is HERE, where I’ve placed our latest viral video. And HERE, where we’ve written a free White Paper on specific actions you can take and more information on the secret elite timeline to thoroughly disassemble the world’s middle-class wealth in 2016. They’re putting everything in place.
Best case for us, they’ll wait a while before triggering general destruction. But that’s what is on their minds. Out of chaos… order. A “new” order. Nothing like having a bunch of psychopaths running the planet, eh?
As we pointed out just yesterday people “get it” whether or not they know about the details of Jubilee. They can see the banks are cratering, that jobs are dying, that price inflation is rising. The reality of the 2016’s terminal dysfunction is hitting them between the eyes. In Asia they line up for blocks to buy gold if they think they can get it at a discount. And in only a few days, China is going to start setting a formal price for gold.
According to reports, top Chinese banks and gold miners, along with the world’s biggest retail jeweler, will comprise an initial 18 members that will support China’s new yuan-denominated gold benchmark. Two foreign banks are going to be involved as well. The new pricing mechanism will begin on April 19th.
There’s push-back from the West – New York and London. That’s where the price of gold and silver has always been rigged – er, set. But China is threatening to push foreign banks out of domestic markets if they don’t honor the new prices, at least in Asia.
Meanwhile, major mining stocks – as we noted yesterday – are up an incredible 100% in the last three months. And gold jumped 16.4% in the first three months of 2016, its strongest quarterly showing since the third quarter of 1986.
The statements, views, and opinions expressed in this article are solely those of the author and do not necessarily represent those of EMerging Equity.