Gold investment application through mudarabah instruments in Malaysia: Analysis of gold dinar as capital

Abstract

Two common ways to invest gold in Malaysia, either physical gold investment or by way of opening gold saving account. Investing in physical gold can be done by means of buying and selling instrument. Meanwhile gold investment account can be done by means of buying and selling as well as mudarabah. Due to gold which is capital in mudarabah in E Qirad is in the form of dinar, while dinar is no longer considered as a currency, but dinar is a commodity. Therefore, the question arises whether dinar is valid either based on currency or commodity (carud). This study aims to determine the above mentioned position, and to study the profit of investing in E Qirad gold.