Although, the price of gold fluctuates from time to time it is still the most stable and a good hedge against inflation.Gold is probably the safest investment in time of war and financial crisis.
In times of economic crisis or inflation, recession or worst case scenario, a depression, gold always stands out as a stable value so that, even when you might need wheel barrows of dollars to buy a loaf of bread (like in Zimbabwe), a tiny gold coin would be enough for you to buy a wheel barrow full of bread.
In 2010, Indian converted more gold into investment than into jewelery.
The chart below shows the price of gold the past decade.
The Kelantan state government has issued gold dinar and silver dirham as legal tender.Which means you can buy them to use as legal tender in Kelantan only or if you wish keep it as an investment.
The move by Kelantan should not be viewed as an illegal action but more to allow its citizens the opportunity of having a more secured currency, as an investment or as an hedge against inflation and in times of economic crisis.
My grandmother used to hoard gold in the form of jewellery and coins.Your grandmother must have done the same.So, the practice of keeping gold as security for bad times has been around for thousand of years.
It is certainly better than investing in some State government's unit trust that have completely wiped out investors money with some losing their whole lifetime savings to this moronic former Sabah chief minister here.
If your are a CEO of a company or leader of a state who manages the state's finances and something goes wrong you are responsible no matter how much you wish to deny it, be it due to external forces beyond your control or bad decision on your part.
Anyway, which right thinking chief minister would allow a share swap of state owned blue chip shares for crappy junks in shitty companies?
I think Kelantan's gold dinar will not become a bona fide currency even in Kelantan but depending on its par value ( I have no yardstick to assess it at the moment) I believe it will be good investment to buy some for keeps.
Bank Negara should approved the minting, maybe not as currency, but as instrument of investment.
Other states should emulate Kelantan's move to offer its citizens a stable and safe investment alternative.
The World Islamic Mint that issues the gold and silver currency is here.
4 comments:
If the Kelantan Dinar is a good investment, why not. But I thought Bank Negara should come out with a statement on this matter is it legal or illegal tender under Malaysian Law.
As a currency the gold Dirham and Silver Dinar is illegal. Only the ringgit is legal tender in Malaysia. However, the Kelantan state government can mint the Dinar and Dirham as a Kelantan souvenir. Subsequently, what people wish to do with this souvenir can be subjected to non-Bank Negara rules as to their worth in ringgit. In effect the Kelantan government would have created a new currency which is an automatic hedge against inflation. Bank Negara have plenty of rules for the ringgit but if one wishes to get around these rules it is not difficult. For instance, The restrictions to prevent the riffit from being traded outside Malaysia is easily circumvented by the money changers in Malaysia and Singapore. Lastly, better gold and silver than the junk ringgit which have been falling for the past 30 years against the Sing dollar.
bro,
kat mana nak beli dinar mas ni di KL?
ada jual tak?
or can buy thru internet?
let's buy it as a keepsake souvenir based on the price of gold. that alone is great.
forget about the political part. greed is good, greed works.
Correction..Kelantan state gov. didn't issue dinar as legal tender..Just like vinnan said, it is Kelantan souvenir. Regarding 1000 shops which accept dinar/dirham, it is based on mutual acceptance between customer & trader..nobody force those traders to accept dinar/dirham or force ppl of kelantan to pay goods in dinar/dirham..
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