Sharia compliant first started out with their banking business (Sharia Compliant Funds)making money on the unlimited transactions and their credit policies based on the Shariah law and the principles of the Muslim religion. Tne next thing they were looking for was the Sharia compliant hotel chain which already became one of the most validated hotel chains in the world. Right now they are about to start their own gold investment and gold storage service – the Sharia compliant gold invest.
Why Sharia Compliant Considers Gold as an Investment Opportunity?
There is a growing number of people that think about gold as an investment and there is lots of businesses like the Sharia Compliant which also want to make money investing in gold. It is not that strange when you consider the fact that gold has a good history of holding its value. That makes it a good hedge against inflation and a great choice for diversifying any portfolio.
Having physical gold is not a bad idea unless you wish to trade it regularly. Owning physical gold is a lot easier than it seems, while its costs are almost as low as other alternatives like ETFs.
When buying gold in bullion bars, you should turn to a well-known dealer that sells large amounts of gold at low prices. If you are interested in buying a smaller amount of gold, however, the Sharia Compliant gold investment service is one of the better places to go to. The online dealer has a variety of precious metals on offer. Shopping for gold online is very convenient as they are shipping their products worldwide.
The most common golden products are the one-ounce coins. They have the most market liquidity and the smallest bid/ask spreads. Most common ones are the U.S Eagles, South African Krugerrands, and Canadian Maples.
If you prefer bigger quantities, the next stage is the one-kilogram bar also known as kilobar. Those kind of bars are popular mostly in Europe and Asia. The 100 oz. or 2,8 kg bar is the most common delivery size of Comex futures contracts. When dealing with larger quantities, the usual format is the 400 oz. or 11,2 kg, which is around the size of a regular brick. This type of bullion is usually what you see in the movies or online pictures of a safe, filled with gold.
For buying and selling larger volumes of gold, you can turn to a dealer like Scotia Mocatta. One of the biggest bullion dealers in North America is operating under the Bank of Nova Scotia. The Bid/ask spreads on larger quantities are pretty small, they could be as low as $1.50 an ounce. Before you make any investment you should always check today’s gold rates and prices
Storing your gold in a place under the custody of a bank or a financial institution is not a good idea. A case of bank bankruptcy or government confiscation could lead to you losing your assets. Comex depositories are also included on that list. Furthermore, do not ask your gold dealer to store your gold for you. The best option for storing gold would be an independent depository. A good independent depository will have all of their holdings insured while allowing you to audit your assets on a one day notice. Keeping your gold at home is also one of the options, as long as you can keep a good level of secrecy and security around your assets.
Transport of your gold is less of a problem than you might think. Any dealer or depository should be an expert on this field. Most likely, they will just send you the gold through a courier delivery service. The package should be insured, probably under the company’s umbrella policy. If they are sending you larger amounts, they could be doing that with an armored vehicle transport.
There is also a possibility of a hybrid ownership of gold. That means a physical ownership of bullion with some of the advantages that come with an online brokerage service. Those solutions are not as safe as having your gold at home or at an independent depository. However, opting for such ownership gives you more independence from the traditional financial systems. Furthermore, the hybrid ownership comes with a lower price than owning physical gold directly. If you are looking for such an option, you can turn to GoldMoney or BullionVault.
To give you some quick insight into those institutions: Goldmoney was established by James Turk and the BullionVault has received quite some investments from the Rothschild family.
People are usually more at ease with the most abstract types of assets. It is kind of ironic that most people, working with investments feel more comfortable with owning ETFs than having a physical coin in their pocket. When you are an owner of an ETF you only hold an equity in a trust that doesn’t have any obligation towards anyone. In that sense, buying some gold coins will help you understand how abstract and intangible most of the investments really are.