Islamicly Shariah Compliant 24K Real Gold refers to gold investments or transactions that adhere to Islamic principles, bought at spot price and stored in secured vaults on your behalf by your agent.
Most Gold savings schemes offered by local jewellers are:
- Not compliant with Shariah principles
- Not an efficient method to accumulate gold.
Key points of a Shariah compliant Gold Savings Scheme:
1. SPOT Price
Gold purchase and sales must happen at the prevailing SPOT price and the sale should be executed immediately
Fixing the price before the sale and possession of GOLD is not permissible in Shariah law.
Traditional Jewellers Gold Savings Scheme:
Gold grammage corresponding to the installment date and amount is recorded.
No sale is conducted. There is no tax invoice issued for such a sale in your name.
This essentially means that the Gold price is fixed before the sale transaction making it non compliant.
Islamicly 24K Real Gold is quoted at the spot prices prevailing in the market. You get a tax collected invoice in your name that the sale of the gold to you is instantly completed. Your tax invoice is evidence of the sale being completed.
2. Ownership and Possession
Gold must be physically delivered to the buyer. Transactions involving gold must ensure that the buyer takes immediate possession (i.e., no speculative buying, and no deferred payment arrangements) to avoid any form of riba (interest).
Traditional Jewellers Gold Savings Scheme:
Since the sale of gold has not taken place, the question of possession does not arise. A Gold transaction where physical possession is not taken by the buyer or his agent is considered non permissible under Shariah law
Islamicly 24K REAL Gold is instantly delivered and possession of the same is taken by the buyers and stored in secured vaults by Brinks. The gold purchased is securely stored in high-security vaults managed by Brink’s, a globally renowned custodian for precious metals.
You can read about BRINKS here: https://in.brinks.com/precious-metals
3. Purity and Authenticity
The gold must be pure and genuine, meaning it meets the proper quality standards and does not contain other substances or be mixed with other materials that are not permissible under Islamic law.
Traditional Jewellers Gold Savings Scheme:
There is always a possibility that the purity of gold does not meet the stated standards, and no benchmarking is available. Islamicly 24K REAL Gold is certified as 24 carat with 99.99% purity.
4. Fractional Buying
With the rising prices of Gold, buyers usually have to accumulate funds to buy GOLD. With Islamicly 24K REAL Gold, you can buy Gold starting at just INR 100!
When buying or investing in Shariah-compliant gold, investors often look for products such as gold bars, coins, or certificates that can be verified to meet these principles. Some financial institutions and gold dealers also offer products like gold-backed Islamic certificates or gold savings accounts that adhere to Shariah laws.
Now that we have an understanding of what exactly is Shariah compliant based Gold, let us understand the different types of Shariah based Gold Investments.
What Are The Types of Shariah Based Gold Investments?
1. Physical Gold (Bars and Coins)
Gold Bars: Investors can purchase physical gold bars of various weights and purity. These bars are stored in secure vaults and are directly owned by the buyer.
Gold Coins: Similar to bars, gold coins are bought for long term investment. These coins must also meet specific purity standards and be verified as legitimate. The physical possession of the coin or bar makes it a tangible investment, which aligns with Shariah principles.
2. Gold-Backed Securities/Certificates
- These are certificates issued by banks or financial institutions that represent ownership of physical gold. The certificates themselves are Shariah-compliant as they are backed by real gold.
- The gold must be stored in a secure vault, and the certificates can be traded on the market. Investors can buy and sell these certificates without actually holding the physical gold but still maintaining Shariah compliance by ensuring the gold is physically stored and owned.
3. Gold ETFs (Exchange-Traded Funds)
- Shariah-Compliant Gold ETFs are funds that allow investors to invest in gold without the hassles of possessing the physical gold. These funds track the price of gold, and the investments are backed by physical gold holdings in a vault.
- The ETF must be structured in a way that avoids any riba (interest) or speculative practices (gharar), meaning it should invest directly in physical gold, and the trading of the ETF should not involve any interest-bearing loans or derivatives.
- Such Gold ETFs must be certified as Shariah compliant for access to Shariah compliant investors
4. Gold-Linked Islamic Investment Funds
- These are mutual funds or investment funds that invest in gold or gold-related assets, such as gold mining companies. These funds are managed in a way that complies with Shariah law and are required to be certified as Shariah compliant.
- The investment fund may be structured to avoid interest (riba) and unethical practices, and it typically invests in tangible assets such as gold and ensures that no speculative activities are involved.
5. Gold Mining Stocks
- Some investors may choose to invest in gold mining companies that are structured in a way that complies with Shariah law. These stocks must be carefully vetted to ensure that the company’s gold trading activities are Shariah compliant and do not involve haram (forbidden) activities.
- Investments in mining companies are typically subject to Shariah screening by a Shariah board, which ensures that they do not engage in activities that conflict with Islamic principles.
6. Gold Backed Islamic Bonds (Sukuk)
- Sukuk are Islamic bonds that can be linked to gold or gold backed assets. The returns on these bonds are derived from gold or gold-related investments, ensuring the Shariah compliance of the transaction.
- The gold-backed Sukuk provides an opportunity for investors to participate in gold-related investments while adhering to the principles of Islamic finance.
How To Start Investing in Shariah Gold?
Here at Islamicly, you can own actual physical gold which is stored securely, complying with Shariah principles. Unlike conventional Digital Gold investment schemes, Islamicly 24K Real gold purchases do not involve interest payments and are physically held, aligning with Shariah guidelines.
- Unlike local Gold Jewellery vendors, with Islamicly 24K Real Gold, you directly buy from the manufacturer and save on Gold Prices, making Charges etc.
- Sell anytime, without going anywhere and receive money directly in your account.
- Accumulate savings in REAL Gold without paying making Charges! Just 99.99% pure 24K Gold and increase your Gold holdings.
- Unlike physical gold, you don’t have to worry about theft or expensive locker fees. Your gold is stored in bank-grade lockers free of cost.
- You can convert your digital gold to physical gold anytime in the form of coins or jewellery through our partners.
- Islamilcy 24K REAL GOLD does not require to invest a large sum of money. You can invest based on your budget, from as low as ₹100
Shariah Compliance Certificate – Islamicly 24K Real Gold
