Tuesday, September 16, 2008

Association of Islamic Banking Institution Malaysia

Islamic Gold Dinar
The Islamic gold dinar (sometimes referred as Islamic dinar or Gold dinar) is a bullion gold coin made from 4.25 grams of 22-carat (k) gold with historical Islamic significance. Gold dinar may also refer to various historic gold coins denominated in dinars.

The Islamic gold dinar conversion rate to other currencies is based on gold spot price. International gold spot price is published in troy ounce of 24k gold, while gold dinar is 22k gold measured in grams. Because one kilogram is about 32.15 troy ounce, the International gold spot price is about 7.98 times of gold dinar conversion rate. weight of coin (grams) × purity of coin × troy ounces per kilogram = fraction of spot price per coin



For example, if today gold spot price is €438.90 per ounce, then one islamic gold dinar is about €55 (438.90 divided by 7.98). The current gold dinar was a theoretical coin in the Islamic world until September of 2006.

=(31.1034768/1)/((4.25/1)*(22/24)) = 7.98

€438.90 per ounce/7.98 = €54.97 Per one Gold Dinar (4.25 Grams & 22k Gold)

In USD =(31.1034768/1)/((4.25/1)*(22/24)) = 7.98

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