Gold-backed Currency Launches in Dubai

GoldCore's picture

Gold-backed Currency Launches in Dubai 

  • New gold-backed currency OneGram launched
  • Backed by one-gram of gold, uses blockchain technology
  • OneGram is first in wave of new Shariah, tech-savvy gold products
  • 2017 sees big changes for gold thanks to Shariah gold and blockchain
  • Gold investors should prepare for tightening in supply
  • Bitcoin and shariah gold demand suggest change in retail investor thinking

Technology, shariah gold and bitcoin point to changing views

Ramadan Kareem rang out across Dubai and the rest of the Muslim World this weekend as the holiest month in the Islamic calendar began. For 29-30 days over a billion Muslims around the world practice sawm (fasting), charity (zakat) and salat (prayer). This period is a time of spiritual reflection, increased devotion and worship as well as a time to come together with loved ones for both the break fast meal (Iftar) and pre-fast meal (Suhur).

Ramadan is obviously observed in different ways around the Muslim world. Here in Dubai a non-Muslim will experience a place full of both celebration and reflection, with events happening every evening that are there to welcome everybody. The month also sees a number of companies launching Ramadan promotions ranging from bank accounts (free banking for six months, anyone?) to spa treatments (2-for-1 massage?) to huge packs of dates (the first food to break the fast).

As part of the celebrations, a new gold-backed currency has been launched, here in Dubai. It is a new currency known as OneGram (OGC) backed by one gram of gold and can be used for digital payments. There is a fixed number of OGCs and digital transaction fees (minus admin costs) will be reinvested to buy more gold. According to the managers, “the amount of gold backing each OGC will increase with time.”

OneGram has been launched by a private company of the same name. The company claims to offer a proof-of-stake blockchain that is ‘’further anonymized’ than Bitcoin. Reports state that ‘developers employ zero-knowledge dual-key stealth addresses and ring signature protocols toward ‘instant, untraceable, unlinkable, trustless transactions.’

Shariah Gold Standard

In December we witnessed the launch of the Shariah Gold Standard. Announced in Bahrain by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and the World Gold Council, the Standard is the first ever set of guidelines for the 2 billion Muslims looking to invest in gold-based financial products.

As we explained in December:

According to Islamic texts, gold is a ribawi item, which means that it must be sold on weight and measure, and cannot be traded for future value or for speculation. In order for a gold instrument to be Shariah-compliant, the precious metal must be the underlying asset in related transactions.

When the Shariah Gold Standard was launched, one of the world’s leading investors Mark Mobius labelled it as a “godsend” that was both “innovative and revolutionary”. Currently the Islamic Finance market accounts for 1% of the global GDP, and is growing at nearly 20% per year. The new AAOIFI issued guidelines are expected to propel demand for gold as more companies (such as GoldCore) launch Shariah-compliant gold investment products. The combined use of both innovative Shariah gold investment standards and new technology could boost demand by around 500-1000 tonnes per annum.

The launch of OneGram is part of the new wave of gold financial products that we are beginning to see as a result of the Shariah Gold Standard. Muslims have long looked for more gold products to be made available to them in the $2 trillion Islamic financial markets.

A gold-backed cryptocurrency is not just a positive sign for Muslim investors, it is also a positive sign for those who are looking to invest outside of the financial system. Of course, investing in physical gold has long been available for both Muslims and non-Muslims for many years, but this recent announcement says a lot more about the demands for safe-haven investing than previous changes in financial markets have.

A new safe-money standard?

Right now it seems the world is paying attention to a financial and geopolitical situation that is proving to have one too many cracks to fix and fill. But, in the background, there is a growing awareness of how we can protect ourselves when those cracks turn into canyons.

There is something in the air that suggests we might be seeing a turn in the way savers and investors are beginning to view their money. The launch of technologically advanced, shariah compliant gold-products is an early indication of this. But when one also considers the recent performance of bitcoin, then we see that the desire to hold money outside of the financial system with reduced counterparties is growing.

The size of the bitcoin market might be minuscule compared to gold, and gold’s market size minuscule compared to that of the dollar, but times are changing. The increased accessibility to these sound-money, safe-haven assets is a sign that the most powerful financial group in the world - the people on the street - are harnessing ways to gain control of their investment portfolios.

Ultimately we believe bitcoin is a complementary asset to gold, but time will tell. Whilst watching and waiting on bitcoin, gold investors should feel assured that launches of gold-backed products such as OneGram are not only validation of the modern approach to investing in gold, but also validation of their decision to invest in gold.

This is good news for gold investors who have chosen to invest in not only the ultimate form of financial insurance but also one that is finite and physical. As awareness and demand grow, it is not unreasonable to expect to see some tightening in the availability of physical gold, which will have a positive impact on the price.

 

News and Commentary

North Korea warns of ‘bigger gift package’ for U.S. after latest test (Reuters)

 
 
 
 

7RealRisksBlogBanner

Avoid Digital & ETF Gold – Key Gold Storage Must Haves

Gold Prices (LBMA AM)

29 May: USD 1,265.00, GBP 983.41 & EUR 1,127.87 per ounce
26 May: USD 1,265.00, GBP 983.41 & EUR 1,127.87 per ounce
25 May: USD 1,257.10, GBP 969.48 & EUR 1,119.57 per ounce
24 May: USD 1,251.35, GBP 963.29 & EUR 1,119.58 per ounce
23 May: USD 1,259.90, GBP 969.62 & EUR 1,119.17 per ounce
22 May: USD 1,255.25, GBP 967.17 & EUR 1,123.07 per ounce
19 May: USD 1,251.85, GBP 962.17 & EUR 1,122.03 per ounce

Silver Prices (LBMA)

29 May: USD 17.29, GBP 13.45 & EUR 15.41 per ounce
26 May: USD 17.29, GBP 13.45 & EUR 15.41 per ounce
25 May: USD 17.15, GBP 13.23 & EUR 15.29 per ounce
24 May: USD 17.03, GBP 13.14 & EUR 15.22 per ounce
23 May: USD 17.14, GBP 13.22 & EUR 15.25 per ounce
22 May: USD 16.95, GBP 13.04 & EUR 15.10 per ounce
19 May: USD 16.77, GBP 12.90 & EUR 15.02 per ounce


Recent Market Updates

- Bitcoin volatility and why it’s good for gold
- Should I Invest My Fortune in Gold? Inaugural Lecture by Dr Brian Lucey
- Gold and Silver Bullion Now Treated As Money In Arizona
- Manchester Attack Sees Asian Stocks Fall, Gold Firm
- James Rickards: Gold’s “Decisive Turn Around” – “Next Stop Is $1,300 Or Higher”
- Gold and Silver Bullion Coins See Sales “Explosion” In UK On “Wave Of Political Turmoil”
- Gold Investment Is the Ultimate Guide for Tech Investors In 500 Words
- Gold Spikes On Heavy Volume On Trump, U.S. Political “Mess”
- Cyber Wars Could Crash Markets and Threat To Humanity – Rickards and Buffett
- Cyber Attacks Show Vulnerability of Digital Systems and Digital Currencies
- History of Gold – Interesting Facts and Changes Over 50 Years
- U.S. Gold Exports To China and India Surge In 2017
- The Dream of the Central Banker

Access Award Winning Daily and Weekly Updates Here

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
GoldenDonuts's picture

Queue up the apocolyse now music as the uncle Sam Petro dollar soldiers for the spread of democracy lay waste to the place.

Goldennutz's picture

Shariah, tech-savvy gold products?

 

Now all gold bugs will be branded as Tear-ists.

 

U.S. Gobbermint sez--Get gold out of the hands of the Tear-ists!

 

It's fer yer own good!!

 

 

gmak's picture

Doesn't matter how much demand you create, the supply of paper gold which sets the price is endless. Vampire Squids 1 - Real Money 0.

Sudden Debt's picture

Thank god our devine leader keep telling us paper beats rock and scisors...

thunderchief's picture

I would never trust anything 'gold backed' in Dubai, UAE.  If someone wants gold or silver they do have a gold souk,  which is quite real and fare. 

But Dubai is full of scams and bubbles.   They are a Middle East version of the west, realestate ponzi scams being front and center.  

My advice is stay out of that region unless you can talk things over in Arabic in a UAE Kangaroo court.  You better be a UAE card carrying local Kangaroo. 

If not you are fucked!

northern vigor's picture

Here you go folks...here is a new piece of paper saying you have 1 gm of gold...and we'll keep the real stuff for you, wink,wink.

A real gold backed currency should have the gram of gold woven right into the fabric of the currency. But that will never happen.

Dwarsligger's picture

Except of course when you are sick of the petrodollar. Blockchain is set to revolutionize our world, mark my words. Especially when linked to a religion. The Asians now have their ZenGold.

ZenGold: Dgital ID and gold on the blockchain
http://globalcitizennews.blogspot.nl/2017/05/new-digital-id-and-gold-on-...

And the Europeans have their namesake:
The Woman in the Window: a hidden message on the new Euro note
http://globalcitizennews.blogspot.nl/2017/04/the-woman-in-window-hidden-...

Religion goes a long way to dupe the masses.

13thWarrior's picture

Forbidden in Islam to trade receipts yet Arabs can found loop holes

 

(7) Yahya related to me from Malik that he had heard that receipts were given to people in the time of Marwan ibn al-Hakam for the produce of the market at al-Jar. People bought and sold the receipts among themselves before they took delivery of the goods. Zayd Thabit and one of the Companions of the Messenger of Allah, may Allah bless him and grant him peace, went to Marwan ibn al-Hakam and said, "Marwan! Do you make usury halal?" He said, "I seek refuge with Allah! What is that?" He said, "These receipts which people buy and sell before they take delivery of the goods." Marwan therefore sent a guard to follow them and to take them from people's hands and return them to their owners.  (Book #31, Hadith #31.19.44)

Dragon HAwk's picture

Using Block chain to keep track of Gold,  is  sort of Like Germany using Serial Numbers.. how did that work out for them?

JailBanksters's picture

What Garlic is to Vampires, Gold is to Jews

Eddielaidler's picture

So where is the gold and who is holding it? Taqiyya

Jack Oliver's picture

TPTB have to keep the GOLD price down - If it went to $5000 - well - everybody would KNOW we were FUCKED !!

These 'developments' usually don't attract a lot of western media attention !!

rf80412's picture

Everybody actually would be fucked since the vast majority of people own no gold, and would therefore have no money.  And the people who did own gold wouldn't be so foolish as to spend it when they can ride it up to $50,000 an ounce.

The Rapture for libertarians.

Jack Oliver's picture

Owning gold 'personally' would not be necessary - As the 'Gold Standard' is based on the value of your countries GOLD x 10 - Which means that for every tonne of gold a country owns - it can print 10x that amount in currency !

So if you had say - 100 thousand in the bank and your country went BROKE - well - you would still have 10 GRAND (in GOLD)  !!

The current FIAT setup - means you will end up with NOTHING !

Lucky Leprachaun's picture

Expect Dubai to be the recipient of some democracy bombing any time now....

Kokulakai's picture

"Gold backed crypto currency" ?

"Block chain technology" ?

If you don't hold it you don't own it.

MadHatt's picture

Should probably look into this...

I sent a bunch of emails about this, and nothing was ever confirmed.

They started one thread... when questions were asked, they just dropped it and started another

https://bitcointalk.org/index.php?topic=1884084.160

They never anwser questions, and one of the people listed as being on the team was unaware until someone messaged him about it.

https://bitcointalk.org/index.php?topic=1879433.0

 

Something about this is garbage.

MadHatt's picture

....... they dont have any gold is what Im saying here.

Lies.

Like OneCoin.

We have gold... ya. My butt has gold.

Silver Savior's picture

This is huge! Your days are numbered fake dollar!

VWAndy's picture

 Bartering is the only way out of this mess.

Dave Whiteman's picture

the only way to avoid using (((fake money)))

 

how to barter with gas company

UndertheDRADIS's picture

Are the "Infidels" going to have to pay extortion money jizya every year?

VWAndy's picture

 Work thru the steps it would take to get away from fiat as a MOE for yourself. Fiats actual value is a big fat 0. So there can be no fair exchange rate between fiats and gold.

83_vf_1100_c's picture

So GoldCore is on board with the muzzies and Sharia law? The shit companies will do for a dollar. I'd rather cut out the middle man and go with Lucifer Coin or Beelzebub Bucks.

Antifaschistische's picture

a gold "backed" currency, is just a commemorative coin, unless the currency is issued from a country where people actually want to exchange it for goods/services.

VWAndy's picture

  Resetting all the prices needs to happen before gold can be used as MOE. All those bubble assets that we been measuring with rubberbands can and will be used to walk away with any gold coins minted for use as MOE. sorry Barter will have to happen in order to correct the true values/prices.

TePikoElPozo's picture

paper money is not islam

The Gladiator's picture

So much for the "Islamic religion forbids usury" mantra.

 

"Those who devour usury will not stand except as stands one whom the devil by his touch has driven to madness."

TePikoElPozo's picture

christianity forbids usury as well, but don't tell the vatican bank

rf80412's picture

Protestants allowed it from day one.  As usual, the Vatican got around to it a couple hundred years later.

daveO's picture

Who profited during those hundreds of years? Same ones running things now.

East Indian's picture

I fail to understand how gold is linked to the blockchain. Blockchain itself is 100% "trust-free"; and how do you ensure one unit of this cryptocurrency is always exchanged for one gram of gold without a human guarantor? 

 

 

Bitscam.

TVP's picture

"I fail to understand how gold is linked to the blockchain. Blockchain itself is 100% "trust-free"

Non-sensical at best.  It's this kind of ignorance that makes me stay away from Zerohedge more and more.  That and the scores of trackers this bullshit propaganda site employs.  

There is no "the blockchain".  A blockchain is a new technology involving a decentralized distributed leger of transactions.  Many blockchains exist and many more have yet to be invented.  The Bitcoin blockchain was the first, and it gets used to move Bitcoin, the currency, digital gold 2.0.  Other blockchains can do other things, but I'm sure I'm already far beyond the average ZHer's comprehension so I'll stop there.

"how do you ensure one unit of this cryptocurrency is always exchanged for one gram of gold without a human guarantor? "

Simple, it's called math.  cryptocurrency can be programmed.  Again, stopping here.  

 

 

East Indian's picture

Blockchain does not need a human guarantor. That is why it is called 100% trust-free. Cryptocurrency can be programmed to produce a key to a vault. What is the guarantee that that vault will contain one gram of gold? 

 

 

You have not explained how a unit of cryptocurrency will get you one gram of gold everytime without a human sitting somewhere exchanging the cryptocurrency for gold. Or a human who has put one gram of gold in a locker, the key to which will be generated by every completed blockchain.

That human is the human guarantor. 

I am too old to describe your view points with adjectives. 

Maestro Maestro's picture

Exactly!

Anybody who buys into these 'backed by this' or 'blockchain this or that' schemes is an ignorant moron duped by the bankers and ALL governments who have proven beyond any reasonable doubt that they are all sadistic, treasonous liars and murderers.

Reject all official schemes.

Fuck all authority extant presently.

Antifaschistische's picture

bunch of pessimists!!!  Allah is the guarantor....DUH!!!

silverer's picture

I can't think of anything that would destroy the present US dollar faster than an honest, physical gold backed currency, be it a crypto currency or paper currency. Would you want to compete with the US dollar the way it was structured in the early 1960's, with silver coins and gold backed paper? I sure wouldn't. It's what made the US an economic powerhouse. Now the US is just an economic printing house.

JTBfromtheWL's picture

I can't believe author is saying btc compliment gold. gold on the blockchain is the future here! Help convince you: http://cryptoinvesting.net/gold-blockchain/ Besides the private gold blockchains of nobodies, there's RMG, royal mint gold. IN partnership with CME group and other big players. They are going to offer to trade 1billion worth of (reedamable!) gold on blockchain intinally. It's starting THIS year!

Dwarsligger's picture

OneGram is not the only one. There's ZenGold too. Huge implications, and it opens the way to a global Digital Financial Identity on the blockchain. In fact, ZenGold will link a digital ID to each transaction. Gold on the blockchain - hordes will be abandoning the petrodollar now, and the changes ahead will be huge and breathtakingly fast.

Check out the world behind this gold + ID + belief system via the link below, because there is a whole murky world in the shadows eyeing up the timing and the opportunities.

Digital ID and Gold on the Blockchain
http://globalcitizennews.blogspot.nl/2017/05/new-digital-id-and-gold-on-...

The Race is on: a New digital Financial Identity for Every Global Citzen
http://globalcitizennews.blogspot.nl/2017/02/the-race-is-on-new-digital-...

silverer's picture

We have somebody here who likes paper. The negative poster must have a job printing currency or something. We understand your attachment to the US dollar, but the dollar was issued by the Federal Reserve in 1913 and its value has since declined to about $0.09. So I believe you think that everyone going broke with US dollars is a good idea? Kind of like the folks in Zimbabwe, who held onto their zim dollars. We can see how well that worked out. I've got one of those 100 trillion dollar bills. It's colorful, I'll say that. When the zim dollar was introduced, one zim dollar traded for $1.47US. The US dollar is headed down the zim road. Just a matter of time.

illuminatus's picture

So that is why gold is down again today

illuminatus's picture

shoula used the sarc tag..but of course you are right.

silverer's picture

Gold is down for a reason. It's called trading naked shorts on COMEX, and settling the contract amounts in dollars instead of taking physical delivery of the metal. That keeps the price down. Silver as well. Just keep your popcorn handy.

thunderchief's picture

Does anyone remember Dubais last gold scam, I think it was Emirates Gold, another paper ponzi scam involving the royal family. 

There is no way in hell I would keep money, especially gold in the UAE.  Singapore,  Hong-Kong Switzerland much safer, and not ruled by dictators! 

archem's picture

looks a bit scammy - but maybe that's just the gaudy arabic graphic design

dogismycopilot's picture

you are referring to gold.ae

http://finance.dailyherald.com/dailyherald/news/read/33772513/

Here is a video of the legal case. watch this and then think about the rule of law you would be dealing with.

https://www.youtube.com/watch?v=wCWdLwviHME