HUNGER AID AND DEVELOPMENT FOUNDATION: This endeavor is the brainchild of Mr. Jorge Fernández Vidal, who happens to be a fellow member of the Unrecognised States Numismatic Society (http://groups.yahoo.com/group/UnrecognisedStatesNumismaticSociety/ and http://www.usns.info/). He has issued scads of micro-national/fantasy coins, and most of these pieces are described in great detail in numerous pages of my Web-site. Mr. Vidal is also the Managing Director of JFV Coins, and he distributes his coins via his own Web-site (http://www.jfvcoins.com/index_english.html). Previously, Mr. Vidal had focused a great deal of his energy into issuing coins from Antarctica (please refer to my separate listing for the Grand Duchy of Westarctica). It seems as though the continent of Africa has truly become a new predilection for him.
INTERNATIONAL FOUNDATION FOR INDEPENDENCE: Co-founded by Dr. Ralph Borsodi (born in 1886), the IFI was concerned with the development of ethical economic institutions regarding land and money. The distinguished economic theorist and land-based American experimenter began pioneering the anti-urban, grow-your-own campaign as early as 1908. Thus, by the age of 22, Borsodi was personally testing the idea of moving “back to the land”. He had fully embraced the concept of “voluntary simplicity” (as it would now be called) by 1920. Borsodi is chiefly famous for his successful experiments in self-sufficient living during the 1920s and 1930s, and for the books he wrote about these experiments. As an important modern critic and creative thinker, he was interested in ways of living useful to the modern person or family desiring greater self-direction and self-reliance, especially so during the Great Depression (some commentators claim Borsodi’s books inspired “hundreds of thousands of people” to follow his example during that period). Much of his theory related to living in rural surroundings on a modern homestead, and he is said to have influenced thousands of urban-living people to try a modern homesteading life. Known as a practical idealist and a communitarian, Borsodi became a leader of the decentralist, back-to-the-land movement in the U.S. in the 1930s and 1940s (the phrase “back-to-the-land movement” refers to a North American social phenomenon which attained its greatest vigor in the 1960s and ‘70s; the movement entailed a migration of individuals and households from urban or suburban circumstances to rural areas at different times; it was based around the idea of living a self-sufficient life close to nature). One of his works, Living the Good Life, is sometimes credited as being the clarion call of the back-to-the-land movement.
ISLAMIC MINT: This private company, located in Dubai (United Arab Emirates) is the official producer and promoter of the Islamic Dinar and Dirham. They are dedicated to reviving as international currency the coinage described in the Koran — the gold dinar and silver dirham. “The Islamic Mint is the leading institution that propagates the use of the Islamic Dinar and Dirham as the Muslim world-currency. We follow the standards of the World Islamic Trading Organisation. We coordinate the minting activity of all Islamic Mint Offices that locally mint the coins. The dies of all the Islamic Mints maintain a certain standard resembling key characteristics that allow people to recognise the coins.” Their official Web-sites (http://www.islamicmint.com/ and http://www.islamicmint.com.my/) offer a good overview of the traditional uses of bullion as a medium of exchange in the Muslim world.
The HADEF Project “is a local Non-Governmental Organisation (NGO) based in Ga in the Wa West District of the Upper West Region of Ghana. Established in 2007, the overall goal of HADEF is to reduce poverty among the rural folk by promoting the socio-economic development of rural communities in the impoverished Wa West district.” At the page devoted to the HADEF Project (http://www.jfvcoins.com/Proyecto%20HADREP/ngo.html), Mr. Vidal offers an explanation for why he has “decided to embark in this numismatic project. I suppose that I share with any other coin collector a certain passion for history and geography. I imagine politics would have to be included as well, since there would be neither without it. One could say that coins are, to some extent, a physical representation of the history, geography and politics of any region or country. Having said that, it is genuinely believed that the more unusual the coin, the more fascinating the story and hence, the more intrigued I am. Without giving much detail, JFV Coins is dedicated to producing and distributing unusual coins. It is not solely because we believe that it is an interesting and generally unknown area, but because we truly are fascinated by them. In a time where commemorative coins of the most varied events, are part of our collections (coins issued by the Central Bank of almost any state) and where the concept of what is a ‘coin’ has changed dramatically; we believe that it is the time when other nations should have the right to commemorate their history and their existence. I am fond of history and I am particularly intrigued to the history of the Black continent, Africa. It has a dark and unknown yet magical history. A history marked by the Conference of Berlin (1885) where the Europeans decided to divide the African continent between the foreign powers, creating imaginary countries and changing the course of history. It is not my intention to discuss the impact of these changes yet anyone who has had the opportunity to travel to Africa has probably noticed that even though they all share the same flag and territory, these diverse nations, kingdoms and tribes have not lost their own identity, power and influence. The European mistake could not destroy these tribes and the constitutions of most of the African countries still recognize the importance of these nations (for those who are interested in this subject, the chapter 22 — Chieftancy — of the 1992 Constitution of the Republic of Ghana is a clear example of the legal and political power of the tribal leaders).” Mr. Vidal asks, if so many tiny territories and dependencies all around the world are issuing their own coins (either for profit or as a way to express their national identities), then “what prevents Sovereign African tribes from issuing their own coins? Yet it is not just about coins. There is something else. It is a tribute to a history marked by difficulties and challenges. In JFV Coins, we believe that this is a genuine effort to help those who are in need through something that we truly love: coins. That is why all the profits from these projects will be donated to the NGO HADEF, to be used for future developments in each of these tribes.”
Based on my personal communications with Mr. Vidal, the HADEF Project “was founded by me and my associate in Africa…It's aim is to reduce the rural poverty and build sustainable development, through livelihood interventions, food security, support for quality education, and so on.” The NGO “is tied to the Ghanaian issues that I am currently working with. I've decided to set up my NGO and the bulk of my projects in Ghana because of the political conditions, the significant number of tribes and kingdoms, and the opportunities for economic development.” The NGO will be financed by Mr. Vidal’s personal resources and by “the profits obtained through the sale of coins from African Kingdoms and Tribes of the area. These Kingdoms-Tribes are recognised as sovereign entities by the constitution in Ghana, and due to the particular political conditions in West Africa, they still have a significant power and relevance in the Ghanaian live.” The number of Kingdoms/Tribes for which he produces coins will depend on the number of contracts he can secure. “I don´t really know if the coins will be popular or not as it will be difficult to promote them but I think it is a great project that can make an impact in the lives of so many people.” The HADEF Project was originally to have been called the HADREP (Hunger Aid & Development Programme) Project.
In an e-mail (5/11/08) to the USNS, Mr. Vidal provided more information about the HADEF coins. “The Kings or Chiefs of these Kingdoms and Tribes have duly authorized all my tribal coin productions.” He provided the group “with the scan of the contract JFV Coins signed with the chiefs of the Eduola, Ewaala and Naajeri Tribes (the first coins that I produced for the HADEF project). These agreements allow JFV Coins to produce their coins.” All 3 contracts are dated November 18th, 2007. He pointed out to us that these (and other) Tribes wield real authority in their country of origin. “In the absence of any democratic structure or any sort of Western-style government, they act as sovereign territories.” He urged us to take a look at Chapter 22 (it focuses on the institution of Chieftaincy) of the Constitution of the Republic of Ghana (1992). He reminded us that “I am not trying to argue that my productions are any sort of legal coinage or anything like that…Another important thing to mention is the purpose of these coins. I enjoy producing coins, and certainly I do not do if for the money.” Producing privately-minted coinage “is not a very profitable venture. It takes years just to break even. So it is not a commercial business. I produce these coins to raise funds to be used in local projects in these communities. I have also created my own NGO, which is currently operating in Ghana.” He also provided the group with a scan of “the official registration documents I received a couple of weeks ago”: a Certificate of Incorporation dated March 13th, 2008, and a Certificate to Commence Business dated March 14th, 2008. “We have been working in several projects since last year, including a 20-acre farm in the Upper West Region of Ghana and several micro-credit projects in different areas. Fortunately, things are going better than expected with the NGO. I have not raised enough money from the sale of these coins to finance the periodic donations I make and I am using my personal money to keep the NGO working. And we are talking about a few thousand Euro a month. I still hope the coins will sell well enough to permit further issues from other tribes.” He also offered to send the group “pictures of the farm, and the people we work with”, as well as other documents “which show that the donations and activities of our NGO are real.” The following is a brief summary of the tribes/kingdoms for which coins have already been produced:
Eduola Tribe (of Nyetigu): “The Eduola occupy a vast stretch of land around the south-eastern corridor of the Upper West region, sharing boundary with the Northern region. The great warrior known only as Takyi is believed to have migrated from somewhere near present day Accra (Ghana’s capital city) on his conquest agenda, settled at Nyetigu and later his progeny split to Kanyini in the Jirapa/Lambussie district of the upper west region. From Nyetigu, they expanded their horizon to share boundary with Wechiau at present day Ga to the west, Naaha to the north, and Northern region to the east and south.” For the Eduola, Mr. Vidal has produced a 2008 1 Edo piece, honoring Chief Yakubu Galibeu.
Ewaala Tribe (of Ga): “The present day Ga is predominantly ewaala who are believe to have migrated from Dorimon near Wa to the western corridor along the banks of the black Volta. The three ewaala clans: Sandaayiri, Kwameyiri and Donwieyiri wield royal power in Ga. These clans are superceded by a unified leadership, the Yirininkpong, who is equally accepted by the entire people of Ga. The Yirininkpong thus is the most elderly (not necessarily in age) in lineage among the three royal gates and for that matter the elder of the village.” This is a 2008 1 Ewai piece, honoring Chief Naa Sumani Ibin Banda.
Naajeri Tribe (of Polee): “Naajeri is one of the three royal gates in the Wa traditional and chieftaincy system. With their traditional and administrative capital at Yaru, the people of Naajeri are spiritually dominant among their co-equals. They have produced one of the greatest leaders in the Waala tradition: Wa-naa Sidiki Bomi. Polee is a humble village with total population of about 1,500 residents. The rugged terrain of Polee makes one easily suspect of mineral deposits, though this has not yet been confirmed. The community is located between Wa Municipality and Wa West district, a few kilometres away from the Wa-Kumasi trunk road to the west.” This is a 2008 1 Eche piece, honoring Chief Salia Kperisinaa Dramani.
Mr. Vidal has also produced coins for the Mwalba Tribe (a 2 Mwal piece, dated 2008), the Emuola Tribe (a 2 Dier piece, dated 2008), the Manyaala Tribe (a 2 Ebo piece, dated 2008), the Pokoyirdeme Tribe (a 1 Miwor piece, dated 2008), and the Mantina Tribe (a 1 Iya piece, dated 2008).
Information about each of these tribes can be viewed at:
http://www.jfvcoins.com/Proyecto%20HADREP/tribes_kingdoms.html
Images of the HADEF coins can be viewed at:
http://www.jfvcoins.com/Proyecto%20HADREP/coins_HADREP.html
Apart from the HADEF pieces enumerated above, he has also produced several non-HADEF (non-Ghanaian) pieces. At the end of January 2008, Mr. Vidal informed me “that the first coins of my ‘African Project’ have been released…I am extremely happy because I've been working on this particular business for a long time and it's a relief to see that it's moving forward. As I'm sure I've mentioned in one of my previous emails, these coins are a way to raise funds to local charities”. I was initially confused about which coins would pertain to his “African Project” and which ones would pertain to his “HADEF Project”. Mr. Vidal then explained how he differentiates between the two ventures: “I've been in over 10 West African countries during the last 15 months and I've managed to secure several agreements with kingdoms and tribes from Senegal, Guinea-Bissau and The Gambia among others. The purpose of the issues is the same: promote the tribes/kingdom and raise funds for local charities. But with the issues outside Ghana I will donate the proceeds to local NGOs instead of managing them ‘personally’ through HADEF, that's why these Senegalese issues are not included in the HADEF website. I thought it would be misleading to include them there.” Mr. Vidal’s numerous “African Project” (non-HADEF) issues include coins from:
Chisumulu Island and Likoma Island: Chisumulu Island (4,000 inhabitants) is the smaller of two inhabited islands located in Lake Malawi (also known as Lake Nyasa). Likoma (9,000 inhabitants) is the larger of the two. “Both these islands lie just a few kilometres from Mozambique, and are entirely surrounded by Mozambican territorial waters, but belong to Malawi. They are therefore exclaves of Malawi. This came about because the islands were colonised by Anglican missionaries spreading east from Malawi, rather than by the Portuguese who colonised Mozambique.” For both of these islands, Mr. Vidal produced a 5 Kwacha piece, dated 2007. Images of these can be viewed at: http://www.jfvcoins.com./Productos/world_coins=OtherCoins.html.
Royaume de Kabrousse: “The Kingdom of Kabrousse is located [in Senegal] near the border with Guinea-Bissau in a small village of the same name. Although it currently has just 6,000 inhabitants, Kabrousse was one of the most powerful kingdoms of the area until recent times. It is the birth-place of the Diola Queen Aline Sitoé Diatta, a famous heroine of the Senegalese resistance to French Colonialism.” These coins — a 1 Cauri piece and a ½ Cauri piece, both dated 2008 — are “dedicated to her.” Images of these coins can be viewed at: http://www.jfvcoins.com./Productos/micronations_english=catDK.html.
L'île de Syppo: “The island of Syppo is located in Siné Saloum Delta in the south of Senegal. Syppo is a small ancient kingdom ruled by Madame Toure. Right now the Kingdom consists of a small village that receives a significant number of tourists every year.” The 2 Cauri piece, dated 2008, “is the first issue of this tiny Kingdom.” Images of these coins can be viewed at: http://www.jfvcoins.com./Productos/micronations_english=catOS.html.
Mr. Vidal has also produced coins for the Haal Tribe (a 10 Deng piece, dated 2008; http://www.jfvcoins.com/Productos/micronations_english=catDK.html), the Kanjaga Tribe (a 5 Kebu piece, dated 2008; http://www.jfvcoins.com/Productos/micronations_english=catDK.html), and the Ncham Tribe (a 3 Peuhl piece, dated 2008; http://www.jfvcoins.com/Productos/micronations_english=catLN.html).
We cannot forget, of course, the lovely pieces Mr. Vidal issued for the Kingdom of Biffeche (please view my separate listing for this coin-issuing entity).
Borsodi spent decades analyzing the ills of modern society and imagining remedies for the problems. He was an early thinker delving into the problem of modern industrial society plundering non-renewable resources, suggesting that our societies should explore the use of renewable resources. His followers felt he usually was working at solving problems at least 20 years before most analysts realized the problem existed (it is said, for example, that he predicted the inflation of the 1970s some thirty years before it came). He was a largely self-taught social philosopher, though a Master's from St. John's College and a Doctorate from the University of New Hampshire were later conferred upon him. His lifelong work, which was influential in spurring a “rural renaissance”, was devoted to the establishment of Eupsychian sub-cultures, and he authored a slew of books and research papers on this topic (the neologism Eupsychia — invented by the psychologist Abraham Maslow — means “the Good Society”, the “society of good people”, or “society of good souls”). In 1934, he founded the School of Living, whose goal was to empower people to achieve more fulfilling, self-sufficient lives and to promulgate the private ownership of land and its resources.
A great source of information about Borsodi’s monetary philosophy is an article by Rick Perry found in Mother Earth News (Issue No. 27, May/June 1974) entitled The Borsodi Constant: An Inflation-Free Currency (http://www.motherearthnews.com/Nature_and_Environment/1974_May_June/The_Borsodi_Constant__an_Inflation_Free_Currency). The article, written at a “time of runaway prices”, gives us an understanding of Borsodi’s “long-term interest in inflation, its causes and cures. To be downright blunt about it, Borsodi does not believe that a steadily shrinking dollar (or yen or mark or franc or whatever) is quite the ‘accident’ that politicians usually make it out to be. Quite the contrary. In his view, governments cynically and stupidly debase the purchasing power of their currencies on purpose by printing too much paper money. Why? Because modern politicians and the economists who advise them are — in the main — rather weak-willed animals who lack either the power or the fortitude to run a country on a strictly pay-as-we-go basis. ‘It wasn't always this way,’ Borsodi points out. ‘During most of the last century, the majority of economists preferred gold and silver or currencies that were solidly backed — unit for unit — by such real wealth. The prevailing doctrine among those economists was that the worst possible kind of money was “printing press” money…currency backed by nothing except the word of the government which issued it. They called this fiat money. They didn't have much regard for it. All right. Along came John Maynard Keynes. He was a very influential economist in England from about 1915 to 1946 and he invented the idea that we can insure prosperity by “controlled inflation”. Keynes' theory, you see, is that a government can steadily expand a country's economy, even during periods of what would otherwise be a recession or depression, by pumping a little “extra” money — a little printing press currency — into circulation. Now Keynes knew that this would dilute the purchasing power of every unit of money already in circulation. If you have more units of money trying to buy the same amount of goods and services, you know, prices inevitably go up. You have inflation. Keynes was willing to accept this debasement of currency, however, because he thought that a government could inflate its currency just a little bit and just once. Then, as the Good Times began to roll in that country once more, the government could stop pumping the extra units of money into the nation's economy. Well that was a nice thought, but politicians don't seem to work that way. Planned inflation is just like planned drug taking. It doesn't work. You always need a bigger “fix” the next time around. Politicians have never stopped inflating a country's currency once they've begun. Quite the contrary. They just keep on giving a nation's money supply a bigger and bigger shot in the arm until the whole situation runs away with itself. And that's what's happening on a global scale right now.’” In Borsodi’s view, Keynes was “the architect of the inflation with which the world is faced”.
The article goes on to explain that “Borsodi traces the planet's current financial problems to the International Monetary Conference held in Bretton Woods, New Hampshire in July of 1944. Keynes' inflationary philosophy was adopted on an international scale at that meeting and, as a result, is universally accepted by heads of state and their advisors today. Dr. Borsodi, on the other hand, was not impressed by the idea then and he remains unimpressed by it now. ‘I like what I call “rational systems of money”. I liked them in 1944 and I still like them today. Fiat money is not rational and Keynes' philosophy of economic growth can lead only to fiat currency.’ The Bretton Woods conference disturbed Dr. Borsodi so deeply that he soon wrote a small paperback in which [he] prophesied what are substantially the economic problems that we're experiencing right now. The booklet, published in 1948 by The School of Living, was titled Inflation is Coming and What to Do About It. Despite the fact that the publication sold nearly half a million copies, however, few individuals in positions of power seem to have read it or to have heeded Borsodi's warnings. And so we find nearly every nation in the world frantically trying to run up…an increasingly rapid down escalator of debased currency. It costs more and more every day, in other words, just to stay even than it did the day before. During the 28 years from 1945 to 1973, the value of the United States dollar depreciated by a good two-thirds…and a 1974 dollar has shrunk an additional 10%. And there's no end to the madness in sight. ‘If we continue this foolishness,’ says Borsodi, ‘we're eventually going to witness a debacle followed by a depression worse than that of the 1930's.’”
In the aftermath of the Bretton Woods conference (which resulted in the formation of the International Monetary Fund and the World Bank), Borsodi resorted to writing and traveling to Mexico and India; he studied and lectured for four years at the University of Ahmedabad. He became a friend of Vinoba Bhave, who was a close colleague of Gandhi. At one point during this friendship, Borsodi recognized the similarity between the Gramdan (Village Gift) movement in India and the intentional communities/homestead projects he created or directly inspired (such as Dogwoods in Suffern, NY; Liberty in Dayton, OH; Bryn Gweled in Southampton, PA; Lane's End in Brookville, OH; Tanguy in Glen Mills, PA). He then proposed a plan which would promote collective proprietorship of plots and would support Vinoba Bhave and other Gramdan workers who walked from village to village in rural India appealing to landowners to give part of their holdings to community organizations to be leased to landless laborers for them to cultivate crops. Borsodi enlisted a friend named Robert Swann in his plan to create a loan fund for farmers in small rustic communities throughout India.
In 1967, the two men (who would become tireless promoters of local currencies and fathers of the Community Land Trust movement) established two non-profit quasi-public, cooperative corporations registered in Luxembourg (a country “which does not interfere with currency movements”). Their mission was to teach and help establish the trusteeship of arable tracts, and Borsodi hoped that they would continue the development of his cherished ideas having to do with land reform in underdeveloped nations. One of these was the International Independence Institute, which he conceived as the training and educational arm of the project. The other was the IFI, whose function was to operate as the banking arm for the Institute. It was to handle the money raised from First World countries. Money raised by the Foundation would be used to train field workers and to lend commodities like seeds and fertilizers to individual planters in India and other Third World sites. In his own words, “The Foundation will operate on the principle that every large tract of land which it makes available to farmers and villagers in the underdeveloped nations should be organized into an enclave for economic rent.” Except for a small amount Borsodi put in of his own money, this Foundation never became fully operational. I have also read that the name of the overall entity created by Borsodi and Swann was the Independence Foundation, Inc. (a land trust that functioned as an economic, banking, and credit institution). Borsodi intended it as a new and ethical way of making low-cost, cooperatively shared credit available to people who wanted to build homesteads in the community. This institution made it possible to provide people access to land without their having to pay outright for property in the beginning.
Now, we’ve finally reached the fascinating topic of Borsodi’s brief and brilliant foray into numismatics. In 1972, Borsodi decided that instead of writing another book about inflation, he would conduct a series of experiments to demonstrate the feasibility of creating an “inflation-proof monetary system”. For years, he had been concerned about chronic inflation resulting from a steady debasement of the U.S. dollar. Clearly, the dollar’s purchasing power was steadily diminishing. Borsodi did not see any light at the end of the tunnel. He found it especially disturbing when it had been formally and officially devalued in respect to gold by 8.57% in 1971. This was the straw that broke the camel’s back. As a result, he envisioned an “honest money system” which would hold its value and which could be introduced into societies left impoverished by modernization. As we have seen, Borsodi was driven by his palpable distrust of the fiat dinero we all use nowadays, and he believed that without money reform, no social reform would be possible. So with the help of Swann and a few associates, he worked with two banks in his hometown of Exeter, New Hampshire to launch a complex commodity-backed currency.
Borsodi succinctly recounts how this process unfolded in one of his books: Inflation and the Coming Keynesian Catastrophe: The Story of the Exeter Experiment With Constants. Because he wanted to “rivet attention on the importance of replacing the present unstable and inconstant dollar with a stable and constant one”, he called his substitute for the dollar just that: the “Constant”. The scrip, which was to become a forerunner of today's local currencies, “could be purchased with U.S. dollars at the local bank, and would be accepted as payment for goods at local stores.” Borsodi believed that his “currency would not devalue like U.S. dollars because it could always be redeemed for the same amount of commodities, or it could be redeemed at the local bank for U.S. dollars at an exchange rate based on the current price for the index of commodities. [This] ‘commodity basket’ as he called the currency, would continue to have the same value, even as the dollar went down in value. Hence, it would take an increasing number of dollars to exchange for the same number of constants. To ensure there would be enough dollars in the bank, he placed some of his own money with his friend at the bank to cover any demand.” In order to give the readers of his book “some ‘feel’ for what took place,” Borsodi believed the best way was “to include one of the best of many stories which appeared in various magazines and newspapers both here and in England.” Therefore, he reprinted, word for word, “a feature story written by Mel Most, the Financial Editor of The Bergen Sunday Record, of Hackensack, New Jersey. It occupied a full page in its issue of February 4, 1973. Mel Most took a particular interest in the matter because I used to live in his neighborhood and he knew something about me.”
Most’s article begins: “Would you believe — a new, worldwide, inflation-proof money? Pensions, insurance benefits, and annuities paid in the dollar value of the day they were signed for? Imports and exports that arrive with prices unaffected by shifts in exchange rates after they were ordered? Wages that adjust by themselves to the rising cost of living? Ask Dr. Ralph Borsodi, an author-economist who shook up Rockland County with his social experiments when he was a mere 50 and is doing the same to Exeter, N.H. at 86. He’s been quietly testing a currency designed to keep pace with prices — suddenly spotlighted by recent headlines: President Nixon’s lifting most wage-price controls; a 20-year record, one month jump in wholesale prices; the cost of food expected to go up 50 per cent higher than forecast for the first half of this year. For seven months, Borsodi has had Exeter shoppers, merchants, banks, and schools paying and receiving with monetary units he calls ‘Constants’ used like dollars. Thousands of dollars of bank money orders and personal checks for Constants have circulated like money, been used for buying and selling, and have been cashed by tellers. The big difference is that regular money buys less and less as time passes, while the Constant is pegged in value to the government’s cost-of-living index. That means one Constant should always buy the same amount of goods on the average. For example, people who bought Constants from Borsodi’s organization at say, $2.18 a 10-Constant note, were surprised later when the bank gave them $2.19 for it. That was because the cost of living index had risen by a half-percent or so in the meantime. The experiment worked so well in the sleepy New England town of 8,892 inhabitants that the University of New Hampshire Press in Durham is printing a first issue of 275,000 Constants in currency form. Now worth about 22 cents a Constant, the bills will go into circulation next month — with coins to follow — in denominations of C1, C5, C10, C25, and C100. The Constant is designated by ‘C’ crossed with an ‘equal’ sign. ‘We need something more stable than all the paper currencies today which are really nothing but overdrafts,’ Borsodi said. ‘The Constant will be pegged to the price of commodities.’ Backing it, he said, are enough capital reserves — $100,000 — to cover an unheard of, sudden 10-point rise in the cost of living index. The interest alone has undoubtedly been enough to pay for the test runs, although it won’t provide the permanent basis of operation. Backing the project, too, has been a lot of confidence — the indispensable ingredient that make currencies rise and fall in value. Even the staid, wealthy Philips Exeter Academy prep school paid in Constants for thousands of dollars of printing and supplies. Joining his following among businessmen, volunteers come halfway across the country from Borsodi’s other disciples — the youth. Youths rebelling against the urban-suburban rat race have rediscovered his book on homesteading in Rockland County, Flight from the City, republished almost 30 years after it spurred a back-to-the-land movement in the Suffern area during the Depression. Borsodi left Rockland County in the early 1950’s. Another book written by Borsodi during his 33 years of homespun living in Rockland warned that ‘Inflation is Coming’ and led to the Constant. ‘Inflation is the meanest of all tragedies,’ he said. ‘It strikes the old who have counted on their savings.’ Borsodi, an energetic, wiry man, walks every morning to his office at Independent Arbitrage International, his non-profit organization which issues and redeems the Constant. He almost always goes home for lunch with Mrs. Borsodi, whose picture is prominent on his desk…Up to now, the Constant has been backed by the $100,000 reserve, which is on deposit at banks in Exeter, Boston and London. The plan is funded by users themselves, since they pay or deposit money with the organization to get their Constants. First National Bank of Boston and two Exeter banks confirmed that Independent Arbitrage International (IAI) was a substantial depositor and was considered responsible. Besides Borsodi as chairman, its advisory committee includes bankers, brokers, editors, attorneys and economists. In a new phase, the organization has incorporated in Luxembourg — where there are no restrictions on movement of money — to form an international banking institution which will be completely free of any government’s needs. ‘The difficulty with the International Monetary Fund is that they use it to finance the government’s deficits. We’ll be doing a banking job instead,’ Borsodi said. In place of capital based on payments and reserves, he plans to base the Constant on goods — and instead of being pegged to the government price index, it will be pegged to the world price of those goods. Here’s how the idea works. Suppose a farmer puts aside a $1,000 profit on his summer harvest to pay for cattle feed next winter. By the time the winter comes, the feed may cost $1,100 and he is short $100. Instead, if he got title to the feed right away, he’d have it in the winter at no extra cost, no matter what the price then is. In fact, he would sell his title for $100 more than he paid for it.” IAI “proposes to make each Constant a title for a tiny share, not just in a single commodity such as feed, but in the 30 top commodities in world trade. What these commodities sell for ultimately affects most world prices, and as their price average went up, so would the value of the Constant based on it. IAI doesn’t intend to store any goods, or to speculate in commodities futures on the markets. Commodities arbitrage (rhymes with ‘garage’) is a form of simultaneous trading in different places. It serves buyers and sellers as an international clearinghouse and saves on shipping goods back and forth, if they can be supplied locally. ‘We’re interested only in spot (immediate) commodities — no storage expense, no speculation,’ Borsodi said. ‘You make money, you have an income from it.’ Now the Constant will be backed by actual commodity values in arbitrage, adjusted monthly to a price index based on world trading prices in the 30 commodities since the mid-1960’s. Prof. William R. Hosek, IAI economist at the Whitemore School of Business Administration at the University of New Hampshire, has just completed computer work on a sort of ‘Dow Jones’ index of the 30 commodities price averages. Gold and silver prices, which used to be the sole basis of most of the world’s currencies, come back merely as two of the nine most traded metals, including aluminum, copper, iron, lead, nickel, tin and zinc. The index also includes the world’s 13 main food staples — barley, cocoa, coffee, copra (dried coconut meat), corn, cottonseed, oats, peanuts, rice, rye, soybeans, sugar and wheat. Its other commodities are cement, cotton, hides, jute, petroleum, rubber, sulphur and wool. Hosek is enthusiastic about [the] prospects. ‘The idea of the scrip is to have a currency that doesn’t depreciate as prices go up,’ he said. ‘It’s a test to see whether or not it would be acceptable and whether the people would hold and use the stuff. It clears through the bank like a check written in dollars.’ Asked if a savings account wouldn’t appreciate as much just on bank interest, Hosek shook his head: ‘You can’t use a savings account for carrying out transactions. You use a checking account. A checking account in dollars today, with just enough in it to buy a TV set, won’t buy a TV set three months from now.’”
The author added that “some bankers are less than enthusiastic about the new issue of scrip, although they participated in the earlier system of using Constants as a money-of-account.” One merchant also provided a memorable comment: “Maybe people will call it a funny money scheme, but the question is whose money is funny — his or ours?” The Exeter Banking Company was one of the institutions that participated in the initial tests, but it declined to “be involved in the scrip issue”. Its Vice-President, Edwin R. Baker, recounted “how Borsodi’s two-state tests worked. The first was a check device, with amounts printed in Constants — 10, 50, or 100. They circulated in town in thousands of dollars worth. Nobody questioned them. When they were cashed against the IAI account, the check was endorsed and we filled in the dollar amount, around $2.18 for $10, to start with. ‘Sometimes people filled in their own and made mistakes. With 50’s, the mathematics can get a little hairy.’ Borsodi then tested individual checking accounts in Constants, which are continuing. ‘Each person maintains an account in his own name with IAI,’ Baker explained. ‘Dr. Borsodi takes care of the individual accounts. As far as the bank is concerned, we treat them all as one account with many signatories. There are close to 50, mostly local, but we’ve also got some scattered around — New Jersey, Maryland, even one in Alaska. It worked perfectly all right because the system for clearing checks has been part of our financial system for many years.’ The problems with the scrip will be that there is no individual endorser, Baker said. He also wondered how the capital gains would be taxed as it went up in dollar value — presumably like a bearer bond, to be taxed when the gain is realized. The biggest legal headache for a small bank, he said, was whether the scrip could circulate as currency. ‘Technically, they’re promissory notes.’ However, no objection was seen by Deputy Chief Counsel Westbrook Murphy at the Office of the United States Controller of the Currency, when reached in Washington: ‘They can circulate clamshells or pine cones if they want to, as long as people accept them. There’s plenty of Canadian money circulating in Northern New Hampshire. The law only provides that you have a right to demand payment in US currency as legal tender if you want to.’ Murphy did dig up an old law, intended to protect the coinage, which makes it a misdemeanor to issue anything intended to circulate in place of money, for less than $1. That would affect only the 1-Constant denomination if carried out. But it would also prevent, for example a New York newsstand dealer from accepting or making change in subway tokens, and other common practices. Borsodi is taking no chances. ‘We’re assuming that once this thing gets started,’ he said, ‘this is going to frighten the Treasury and the Federal Reserve System. It’s going to reflect upon the fact that we Americans are issuing a currency that’s being inflated.’”
Borsodi was convinced “that people were interested in a currency which did not devalue.” He felt “that there must be hundreds of thousands of worried victims of inflation, and perhaps millions who are ready to abandon the dollar the moment an alternative like the constant becomes available.” His convictions drew much attention from the media. The Constant received publicity in several New England dailies and numerous popular national publications/magazines such as Time, Business Week, and Forbes. The first Constants were issued on June 21, 1972; the last one “was issued in the summer of 1973, when I was convinced that the feasibility and acceptability of the idea of such an alternative currency had been proved, and I felt, because of my age, unable to transform what was an experiment into an international bank of issue.” For almost two years, the notes circulated widely on an experimental basis in local shops, restaurants, and schools. Even the town itself accepted them as payment for traffic/parking fines. At their peak, the equivalent of about $160,000 in Constants were disseminated throughout southern New Hampshire and elsewhere, both in the form of paper currency and as checking account balances at several area banks. They proved, as Borsodi had hoped, that people would be willing to use a currency beside the familiar greenback. They were discontinued only because of the decline of his physical well-being (his doctor recommended that he give up the venture). In order for the program to have continued, “it would have been necessary to purchase significant quantities of the 30 commodities which were included in the basket. An initial start was made by purchasing a quantity of silver, but this was later sold to cover the cost of returning dollars for Constants, when Borsodi had to give up the experiment partly due to his [advancing] age and [failing] health.” Curiously, very few people ever cashed in their Constants for dollars at the bank, probably keeping them as souvenirs of the “Exeter Experiment”. Dr. Borsodi passed away on October 26, 1977.
The article written by Rick Perry (see this listing’s third paragraph) is also very enlightening in regards to Borsodi’s experimental moolah. The author tells us that whilst Borsodi contemplated/formulated an inflation-free currency, he “began discussing his idea with the officers of all the banks in town. He also wrote to the head of the Federal Reserve System and talked for hours with Federal Reserve representatives in Boston. Borsodi was very open about what he intended to do and he took the stand that, while the United States Constitution forbids the counterfeiting of this nation's currency, it in no way limits the minting or circulation of a completely alternative medium of exchange. Although no one particularly agreed with Dr. Borsodi, no one disagreed with him either. He now says, ‘I think they probably said to themselves something like, “Oh well, let the old man go ahead. He can't do anything much up there in Exeter.” I think this is the attitude they probably took toward the whole affair.’ And go ahead he did. Borsodi figured that if it was a good idea to back a currency with gold and silver, it'd be an even better idea to back it with a whole market basket of commodities. That is, if certificates were printed and distributed with the guarantee that they'd always be 100% redeemable in fixed amounts of, say, 30 of the world's most widely used resources…those certificates would automatically increase in value as the value of the resources increased (in terms of constantly degraded national currencies). Whereas a dollar will now buy less than one-third as much gold or wheat or silver or iron or tin or cotton or copra as it bought in 1945…such a certificate (which is issued with the guarantee that it will always be exchangeable for a fixed amount of all these goods) will, by definition, perpetually buy the same amount of gold or wheat or silver or iron or tin or cotton or copra. Year after year after year after year. By issuing a certificate firmly based on real wealth, in other words — instead of politicians' empty promises — Borsodi thought he could create a medium of exchange that would be inflation-proof…or ‘constant’. And he decided to call his new currency just that…the constant. Does the idea work? Well, Borsodi presented his thoughts to a number of people who — over a period of about three years — have ‘deposited’ a total of approximately $100,000 in something called the Arbitrage International ‘bank’. (Deposits and withdrawals can be made by an individual at any time just as if he or she were dealing with a real bank, and all monies are fully protected by the Federal Deposit Insurance Corporation.) The funds, in turn, have been used to buy and sell Borsodi's 30 basic commodities on the world market. Result: The pioneers in the experiment have seen their constants rise in value (in relation to the dollar) a whopping 17% in just three years. Or, to put it the other way around, a constant bought in 1970 can still be traded for exactly one constant's worth of goods…while a dollar will now buy only 85% of what it would purchase three years ago.” We are fortunate that soon thereafter, Borsodi was able to take his innovative theories “one giant step further” by applying the principles of the “Constant” to the minting of a coin he called the “globe”. It came in two varieties (both silver), which were once available from IAI. These pieces, purportedly produced by England's Birmingham Mint, bear the name “International Foundation for Independence”. On their reverse, they feature the slogan “Humanitas-Libertas-Natura”. Perry continues: “As Keith Dewey — a young man who has helped Dr. Borsodi found his alternative currency — says, ‘We can't call them coins because that's against the law and we refuse to call them medallions so we call them globes. They're the missing link between absolute barter and trading. They have no labels on them. No dollar sign or cent sign, and no constant sign. All it says on a globe is that the piece of metal contains either one-half ounce or a full ounce of .999 fine silver. A globe, in other words, is a very convenient barterable item. You can't keep wheat in your pocket and you can't keep a fish in your pocket but you most certainly can keep a globe — which has a real worth of its own — in your pocket. And that real worth, by the way, remains constant. No matter what a dollar bill will buy on any particular day, a globe will always purchase exactly its weight in silver — and a corresponding amount of any other commodity — because a globe is silver.’ (Interestingly enough, the globe has been worth more than its weight in silver from the first day the first globe was minted. On top of its real worth, many people see a certain collector's value in the ‘coin’…and other individuals have been pleased to purchase globes at a premium price in order to help Borsodi finance his new currency. When silver was selling for $3.25 an ounce, for example, the going rate for a one-ounce globe was $7.00. Now that silver is priced at more than $6.00 an ounce, the same ‘coin’ sells for $10.00. And, of course — in the finest tradition of barter — the half-ounce or ounce chunks of metal are also worth exactly what wants, needs or desires make them worth on any given day…)” Perry suggests that “Dr. Borsodi seems to have accomplished exactly what he set out to do.” But “where does he go from here?” We learn that even though Borsodi did not personally take this phase of his plan to its final completion, he made arrangements so that his successors could carry on with the work. “Now that the initial test of his idea is over, Borsodi (who is nearing 90) has handed most of the responsibility for his alternative currency over to younger men…who are in the process of scrapping the prototype setup and establishing a truly international alternative medium of exchange. A limited partnership has been formed and is now conducting experiments to determine the ideal ‘commodity index’ to use for backing the constant. Until the final selection is made, constants are temporarily no longer being issued. (Globes, however, are still available at a price of $10.00 for an ounce piece and $5.00 for a half-ounce strike from Arbitrage International, Exeter, New Hampshire.) The people currently working on Borsodi's concept hope to be able to set up a public corporation by fall. At that time, debentures will be issued by the corporation for funds received. That is: You will be able to pay dollars or any other national currency for Arbitrage International debentures. Your money will then be invested in commodities or guaranteed contracts for commodities…and the goods will be used to give a stable value to the certificates (the debentures) you hold. Owners of constants will be able to redeem their holdings in their own national currency at any time. Holders of constants will also be able to exchange those holdings for commodity contracts on which they can then take delivery, or which they can sell on the open market for some other national currency. This activity will be coordinated out of a bank which will be established in Luxembourg (Arbitrage International already maintains both a Luxembourg and a London office, in addition to its temporary headquarters in Exeter, New Hampshire.) If all goes well, it is hoped that the Luxembourg bank will eventually prove a boon to developing nations by granting self-liquidating, interest-free loans to such commodity-exporting (exploited) countries. This will raise the standard of living in the poorer areas of the planet and encourage international trade. And it will do one thing more: Give little people the world over a safe port against the tidal wave of inflation that threatens to engulf us all.”
An article (author unknown) from the February 1, 1974 issue of Forbes provides a succinct summary of the Exeter Experiment: “You think a broadly based commodity-backed currency will never happen? Well, think again. Today, in Exeter, N.H. people are paying for their groceries not in U.S. dollars but in ‘constants’ — a new, privately issued ‘alternate currency’ backed by 30 of the world’s most widely used commodities. Constants are the brainchild of an 87-year-old self-taught economist named Ralph Borsodi.” We learn that “for 20 years [he was] an eminently successful consultant in Manhattan to companies from du Pont to American Woolen” He “became intrigued with the idea of a commodity currency while working with Yale economist Irving Fisher in the Thirties.” The article continues: “Inflation, by definition, is a price rise over a broad range of commodities, Borsodi explains. Therefore, a currency that is 100% redeemable in fixed amounts of 25 to 30 representative commodities will be inflation-proof (or ‘constant’), since that which backs the currency automatically adjusts for worldwide economic fluctuations. These commodities — gold, silver, petroleum, wheat, iron, wool and peanuts — must be statistically weighted to reflect their importance in world production and consumption. And it works. Holders of constants in Exeter have seen the value of their constant deposits rise 17% in relation to the dollar in just three years. Historically, Borsodi continues, governments debase the purchasing power of their currencies through over-issuance, because they lack the power or the will for a real pay-as-you-go policy. Constants are publicly controlled international currency, beyond the reach of government — not a currency designed to replace any national money, but simply an alternate currency. Borsodi proposes that it be issued by a Luxembourg-headquartered bank. The bank, unlike a government, would not be under continuous pressure to debase the currency.” The author then poses the worrisome question: “What about storing all those commodities?” Borsodi provides a simple answer: “The Luxembourg bank would engage in international commodity arbitrage, buying commodity contracts in one national market and selling them in another. As a result, constant holders could at any time redeem their holdings in their own national currency or exchange them for commodity contracts which they could either hold for delivery or sell on the open market in exchange for some other national currency…Borsodi argues that his system would prove a boon to developing nations. His Luxembourg bank would be able to make self-liquidating, interest-free loans to commodity-exporting developing nations, thereby raising standards of living and facilitating world trade. But most important, it would provide anyone with a safe haven against the ravages of inflation.”
I purchased a 1974 “globe” from Ms. Susan Witt, Executive Director of the E. F. Schumacher Society (started by Robert Swann in 1980).
“In the beginning the Muslims used gold and silver by weight and the dinar and dirhams that they used were made by the Persians. The first dated coins that can be assigned to the Muslims are copies of silver dirhams of the Sassanian Yezdigird III, struck during the Khalifate of Uthman”. More importantly, it was Umar ibn al-Khattab, the second Caliph of the Muslim community (634-644; this early Muslim convert from the Banu Adi clan of the Quraysh tribe was a companion/disciple of the Prophet Muhammad, the founder of Islam), who established the known standard relationship between the 2 coins, which was based on their weights: “7 dinars must be equivalent to 10 dirhams.” Then, in the year 695 CE (75 AH) the Caliph Abd al-Malik ibn Marwan (he ruled from 685-705) ordered Al-Hajjaj ibn Yusuf (one of the most able and important of provincial governors and administrators under the Umayyad caliphate) to mint the first silver dirhams (this piece, based on Sassanian design, apparently depicts Caliph Abd al-Malik holding a sword). Thus, the Caliph Abd al-Malik officially promulgated what was known as the coin standard of the Caliph Umar. “In the next year he ordered the dirhams to be minted in all the regions of the Dar al-Islam...He ordered the removal of human figures and animals from the coins and that they be replaced with letters.” These, therefore, do not bear a pictorial depiction of Caliph Abd al-Malik (nor any other representational images); they only have religious inscriptions. Also in 696 CE (77 AH), the first standard gold dinars were minted (only a few samples of these exist today). Gold and silver coins remained official currency of the Muslim community from its first years until the fall of the Osmanli Caliphate (the Imperial House of Osman, also known as the Ottoman Dynasty, ruled the Ottoman Empire from 1299 to 1923). “Since then, dozens of different paper currencies were made in each of the new postcolonial national states created from the dismemberment of Dar al-Islam.” In effect, the Islamic Gold Dinar “was ousted precisely by the persistent infiltration of non-Shari’i [non-Sharia: being outside the dynamic body of Islamic religious law] money instruments into the Muslim societies, by those forces wishing to harness the vast wealth of the Islamic homelands.” Paper currencies, specifically, posed a big problem. “When paper-money was being first introduced, during the last century by the colonial powers the traditional ulema rejected it as being opposed to Islamic Law. According to them paper money was to be treated as fulus or lower category of currency with limited used [sic], basically just as small change.” Paper money is a promise of payment, and Islamic Law does not permit the use of promissory notes (basically “a distorted derivative of a debt to another party”) as a medium of exchange. “History has also demonstrated repeatedly that paper money has been a permanent instrument of default and cheating the Muslims.” Furthermore, zakat (this concept of tithing and alms is one of the Five Pillars of Islam; it obligates Muslims to pay 2.5% of their wealth to eight specified categories of people in society — such as poor people and the destitute — when their annual wealth exceeds a minimum level) cannot be paid with a promise of payment or a debt, called dayn in Arabic. Zakat must be discharged using gold, silver or certain categories of tangible merchandise referred to as 'ain. “From the beginning the zakat was paid with dinars and dirhams. Most significant is that the payment of zakat was never allowed in paper money during all the ottoman period right until the fall of the Khalifate.”
The solution was to be found in precious metals. “From the beginning of Islam until today, the value of the Islamic bimetallic currency has remained surprisingly stable in relation to basic consumable goods”. In 1,400 years, the bimetallic currency has seen zero inflation. Historically, gold and silver “has proved to be the most stable currency the world has ever seen. It has survived, despite all the attempts by governments to transform it into a symbolic currency by imposing a nominal value different from its weight.” Its reliability is unsurpassed. “Gold cannot be inflated by printing more of it; it cannot be devalued by government decree, and unlike paper currency it is an asset which does not depend upon anybody's promise to pay. Portability and anonymity of gold are both important, but the most significant fact is that gold is an asset that is no-one else’s liability. All forms of paper assets: bonds, shares, and even bank deposits, are promises to repay money borrowed. Their value is dependent upon the investor's belief that the promise will be fulfilled. As junk bonds and the Mexican peso have illustrated, a questionable promise soon loses value. Gold is not like this. A piece of gold is independent of the financial system, and its worth is underwritten by 5,000 years of human experience.”
Many people believe that the modern-day version of the gold dinar was the brainchild of Mahathir bin Mohamad, Prime Minister of financially beleaguered, mostly Muslim Malaysia from 1981-2003. He was trained originally as a medical doctor. In his homeland, he is referred to as Tun Dr. Mahathir Mohamad, Datuk Seri Dr. Mahathir Mohamad, and Dato’ Seri Dr. Mahathir Bin Mohamad. The titles Tun, Datuk and Dato’ are ceremonial Orders of Chivalry (honorary and non-hereditary titles) conferred upon distinguished Malaysians by either the Yang diPertuan Agong (Supreme Head of State), Sultans or Governors of the States in Malaysia. The irascible leader strongly believed that Islamic countries, which were left behind in the industrial revolution, must now “move with the tide into the information age without being drowned in the process”. They needed to keep pace with advanced nations and be innovative in introducing indigenous financial products to remain competitive instead of just imitating/adapting products from conventional markets. “Islam is not and has never been synonymous with conservatism. Islam does not call for rejection of technology or modernity,” said Southeast Asia's longest-serving leader. Muslims must discard petty quarrels among themselves and strive to acquire the necessary knowledge to propel Muslim countries on the path towards development and eventually be at par with developed nations. For mutual development to take place, discord among the community must be eliminated. “I believe we'll have to work together to become strong.” He has expressed confidence that if Muslims could join hands, in a few decades they too could be as rich as developed nations in the world and at that stage, no one would dare to oppress Muslims any longer. “As Muslims, we have a duty to protect each other. But we can't do that if we are weak and poor,” he said. A blunt-speaking pragmatist, he laments that “For some time now the Muslims and their countries have become synonymous with backwardness, authoritarian and frequently unstable Governments”. Ever mindful about the dangers of western-formulated globalization and industrialization, it is nevertheless timely for Islamic countries that have spent the last two decades establishing domestic Islamic financial systems to move on to the next stage, which is the establishment of an international one.
Mahathir, in his opening speech at the International Islamic Capital Market Conference held in Kuala Lumpur on March 26-27, 2002, briefly outlined his plan to resurrect the gold dinar. Many more details would be revealed in the coming months. Basically, the gold dinar — modeled in part after the euro — was devised as a means of preventing a repeat of the severe financial crisis which devastated Asia from July of 1997 until 1999 (there were additional factors as well, including the disastrous situation in the Holy Land, the 9/11/01 terrorist attacks, the war in Iraq, the unstable American dollar). As a response to the economic emergency, Malaysia had withdrawn RM 500 and RM 1000 notes from circulation. The Government then imposed currency control, pegging the ringgit to the U.S. dollar. At the same time, any form of intervention by the International Monetary Fund (IMF) was rejected. The 76-year-old premier, who was also Finance Minister, blamed greedy currency traders for Asia's economic downfall during that dreadful time. He reminded the participants/delegates at the conference (they included personnel from the Malaysian banking sector and government regulators) that “With paper currency there is no intrinsic value. The exchange rate is therefore arbitrary and subject to manipulation as we saw during the Asian financial crisis.” In comparison, “The Gold Dinar being made of gold will largely follow the price of gold”, thereby ensuring a stable value for the currency. The gold dinar would have a definite value based on world demand for the metal and any fluctuation would be minimal. Theoretically, the gold dinar would therefore be less prone to currency manipulation. “We have already worked out the mechanics for using the gold dinar and any problem arising can be resolved. The risk of speculation will be reduced to almost nothing. World trade can actually expand because the cost of business will be much reduced as the need to hedge would practically disappear.” Mahathir’s proposal “is to make this Dinar a currency for international trade only.” He stressed that the Gold Dinar would not replace the domestic currency of any country. (I must point out that much of the ensuing information was not present in the Prime Minister’s speech from the two-day conference; it came from subsequent writings/addresses.) “It is not to be used as local currency.” Domestic currencies (such as the ringgit) would continue to be used for everyday transactions in their respective countries (the Deputy Finance Minister confirmed that the ringgit would continue to be pegged to the dollar indefinitely). The Gold Dinar would be used only for external trade among the participating countries. The Gold Dinar would not exist in physical form (there would be no actual gold dinar coin). It would merely be defined in terms of gold. In other words, local gold prices would determine the exchange rate for the local currency against the gold dinar. “The actual settlement for trade can be by way of the transfer of equivalent amount of gold or the payment of an equivalent amount in US dollar, Euro, Yen or any other currency. Where the transfer of gold is used, it will not be a physical transfer of gold from one country to another, but a transfer of beneficial ownership in the gold custodian’s account.” In effect, the gold dinar would simply be an international unit of account for trade settlements between national banks. Being a neutral currency, the gold dinar would be an ideal instrument towards facilitating trade among OIC countries (the Organization of Islamic Conference is an inter-governmental association of 57 Islamic states promoting Muslim solidarity in economic, social, and political affairs). Mahathir recommended that the gold dinar be introduced gradually. It would be imperative to adopt the gradual approach in order to preserve the stability of the existing system. Initially, the Gold Dinar would be used for settlement of trade among countries with whom Malaysia has already signed Bilateral Payment Arrangements (BPAs). Trade balances under each BPA would be settled every three months. By August of 2002, Malaysia had apparently signed BPAs with at least 24 unspecified countries and it was announced that Malaysia would start using the gold dinar in its trade with some Islamic countries by the middle of 2003. Eventually the BPAs would be converted to a Multilateral Payments Arrangement (MPA), with the participation of as many countries as possible. The implementation of a bilateral or restricted multilateral Gold Dinar policy — among certain Islamic nations at first, and potentially expanding to include non-Islamic nations — would provide a much-needed defense against the collapse of the dollar-centered financial system, and it could contribute to a more durable global solution in the near future.
Mahathir went on to host numerous other conventions (often involving representatives from members of the OIC) to explain and to “sell” the concept of the gold dinar as a trade currency. One was the 2002 International Conference on Stable and Just Global Monetary System: Viability of The Islamic Dinar (held in Kuala Lumpur on August 19-20). Another major conference on this subject was the International Seminar on “Gold Dinar in Multilateral Trades” (held in Kuala Lumpur on October 22-23, 2002). At this particular event — and also at The Gold Dinar Convention (held in Kuala Lumpur on July 1, 2003) — the purported architect of the gold dinar declared his belief that most of the world’s economic woes arose “because the world went off the Gold Standard.” When delegates from all 45 Allied nations met in Bretton Woods in July of 1944 they decided to set up a system of fixed exchange rates managed by a series of newly created international institutions using the U.S. dollar (which was a gold standard currency for central banks) as a reserve currency. They agreed to use gold as a standard. “The Bretton Woods Agreement was about fixing the exchange rate of the currencies of the major trading countries against gold.” However, the value of those international currencies was fixed against the U.S. Dollar, which in turn was fixed at 1/35 ounce of gold or $35 per ounce. “This worked quite well until some countries wanted to devalue their currencies in order to become competitive in the international market. Then other countries also decided to devalue in order to remain competitive. Finally the U.S. Dollar was devalued against the Gold...At this stage the gold standard could not be sustained.” More specifically, it was President Richard Nixon who pulled the plug on the gold-backed dollar in 1971, allowing currencies to float at the whim of speculators. “The market claimed that it could determine the exchange rate through the demand and supply of currencies freely traded in the market. But profiteers moved in and they manipulated the value of the currencies so that there was chaos in terms of exchange rates of currencies. Business became very difficult. Indeed many good businesses went bankrupt when the domestic currency gets devalued. The hedge Funds which claim to insure the value of the currencies made huge sums of money speculating and manipulating the values of the currencies.” Clearly, the situation in terms of international finance became chaotic and anarchic. “But since the system benefits the powerful countries they are unwilling to correct it...If we want to avoid being short-changed we must have a currency that has intrinsic value...This anarchy in the international financial regime will remain because it benefits the rich and the powerful. If we want to protect ourselves we must evolve our own payment system, our own trading currency.” Mahathir made clear that his proposal was not intended to establish a gold standard, but to return to the Bretton Woods policy of a gold-reserve system. “It is not the intention to make the dinar a common currency for all countries. It is not really the Gold Standard with a fixed value against local currency. If countries print more local currency there would still be inflation within the country. But trade would be stable and enhanced. Speculators and manipulators will not be able to undermine international trade.” Mahathir emphasized that the Gold Dinar policy was being driven by the crushing reality of the economic and strategic crisis. He concluded his October 23rd speech thusly: “Of course the Gold Dinar can be a trading currency, for all countries, not necessarily Muslim countries. But Muslim countries are in the best position to demonstrate the viability of the system. They are in a position to manage their economies rationally and in the process show the world that they are capable of growing with stability and in peace. And this will do more towards countering oppressions by their enemies than the futile violent retaliations.”
Unfortunately, the end of the Mahathir era in Malaysia was close at hand. In June of 2002, he announced his resignation. He agreed to stay on a bit longer in order to ease the transition to his successor, Datuk Seri Abdullah Ahmad Badawi (who was his deputy). Then, in October of 2003, he handed over power and stepped down after 22 years in office. He had led Malaysia for almost half its history since independence in 1957. In that time, he oversaw Malaysia's transformation from a backwater to high-flying industrialized nation. He helped his country to become “politically stable” and he transformed its economy into the 17th largest trading country in the world. Sadly, his idea for the Islamic gold dinar was halted (the current PM does not understand or agree with the highly controversial concept). Through a total lack of political niyat (intention/will) on the part of the Sharia banking system and the official governments, the gold dinar has failed to emerge in the manner Mahathir and many others had envisioned. Nevertheless, the former prime minister, still seen in Malaysia as the pioneer of developing the idea of Dinar Economy, has not ceased calling on the Islamic world to embrace the use of the gold dinar for international trade and as an alternative to U.S. dollar reserves in central banks. He is still working passionately behind the scenes. Delivering the keynote address at the 2007 International Conference on Gold Dinar Economy (held in Kuala Lumpur, July 24-25), he stated that such coins could be used as a means of wealth creation without running the risk of losing its value and purchasing power as in the case of paper currency. “Such coins are not legal tender but may be exchanged with currency at gold value at a given time. This is quite simple. It is nothing more than keeping gold bullions as savings. They can be traded and they retain their value in terms of purchasing power quite well,” he told delegates. He said countries that continued to propagate the use of U.S. dollars (which are “worth nothing”) in international trade were keeping themselves hostage to Western monetary policies, and should instead explore using the gold dinar as a payment instrument. “With the usage of the gold dinar, some of the power of the Western banking system and the US dollar would be diminished. With this, the clout of these powerful countries would also diminish. On the other hand by refusing to use the gold dinar, Muslim could be impoverishing and weakening themselves,” he noted. Speaking to reporters later, Mahathir said the delay in implementing the gold dinar policy was due to the absence of a country that was willing to partner Malaysia in the initiative. He said there was a need to persuade the Malaysian government to enter into bilateral payment agreements in gold dinar with other countries as the mechanism was already in place.
In all fairness, it seems that Mahathir was not the person directly responsible for the far-reaching doctrine of a modern-day gold dinar. Of course, I did not know about this until I had already done some extensive research and had practically finished my first draft for this listing. I decided to keep most of the information about Mahathir in this current draft because his entire outlook on the matter is extremely fascinating. Nevertheless, the evidence suggests that the gold dinar was the brainchild of another group of people: the Murabitun. For years, this controversial organization has been attempting to popularize the gold dinar on a massive scale, though often behind the scenes. According to Mark H. Vhoss, in his University of Arizona graduate research paper (2003) entitled The Murabitun: Some Western Muslims’ Answer to the West, “the organization is essentially a Western phenomenon, composed primarily of Western converts to Islam and based in Europe. The organization’s founder and spiritual leader, Shaykh Abdalqadir as-Sufi al-Murabit, was born in Scotland as Ian [Neil] Dallas. An erstwhile actor and counterculture figure, Dallas converted to Islam in Morocco in the 1960s and became a Sufi mystic. His Sufi master, Shaykh Muhammed ibn-Habib, preached that the source of Islamic revival would come from the West and encouraged Dallas to take the lead in the religion’s renewal. Returning to London as Abdalqadir, Dallas continued his counterculture activities in the new context of Sufi mysticism...Traveling around the world, Abdalqadir gained followers while preaching both his Sufi mysticism and an ideal form of Islamic society based upon Maliki teachings rooted in the ‘amal of Medina.” The Maliki Madhhab (Maliki School), by the way, derives from the work of Imam Malik (714-796 CE). It is the third largest of the four schools of Fiqh or religious law within Sunni Islam, and it is followed by approximately 15% of Muslims, mostly in North Africa and West Africa. The word ‘amal signifies “practice” (the practice of the people of Medina, which is the second holiest city in Islam, and the burial place of Prophet Muhammad). “By the 1990s Shaykh Abdalqadir and his followers had developed a bold plan which would strive to reawaken and reimplement the lost society created in Medina by Mohammed and his Companions.” Unlike other Islamic fundamentalist groups, which advocate the reimposition of Shari’a (Islamic law) through political means, Abdalqadir’s Murabitun have taken a different approach. “By eradicating the Western capitalistic system, which in their view destroyed and enslaved the Islamic world, and instituting a ‘pure’ Islamic system of commerce, the Murabitun believe that Shari’a and Islamic governance will then occur organically. Eventually, according to Abdalqadir, the Khalifate will reemerge, and the Islamic world can once again claim its preeminence as a divinely-guided swath of land and peoples extending over three continents.” Abdalqadir’s “organization takes its name from the Almoravids (Arabic: al-Murabitun), an 11th and 12th century group of Berber warriors who conquered Spain and Morocco, founded Marrakech, and established an empire based upon a strict interpretation of Maliki law. The Almoravids came swiftly and suddenly out of the West African deserts, harshly enforced Islam in their domains, and checked encroaching Christian power in southern Spain. The modern day Murabitun see themselves in the same light, as restorers of the faith within and champions of the faith without. This dual definition of purpose is evident in the writings of Abdalqadir, who assails both the infidel, or kafir, financial system as the enemy without as well as the Salafi and Wahhabi reformers as enemies within.” While Abdalqadir’s followers “do not promote physical violence against Western political and financial institutions, they have declared war nevertheless against the West’s capitalistic system. The Murabitun’s end game in its war against Western finance is the eventual establishment of an Islamic trading bloc which will facilitate the return of the Khalifate. To achieve these results, the Murabitun propose: the re-establishment of gold and silver as non-fiat currencies; the resumption of caravan trade as opposed to ‘monopolistic’ distribution; the reestablishment of Islamic guilds and open markets; the abolition of banks; and the application of traditional Islamic commercial law.” The Murabitun movement has been described as possibly the only religious sect in history whose defining article of faith is a financial theory. Abdalqadir’s published attacks against the corrupt “Western capitalist system are extensive and biting.” And his writings against Western finance are unequivocally anti-Semitic in tone. “Having demonized the West and de-legitimized post-Khalifal Islam, Abdalqadir and the Murabitun present themselves and their ideology as the only ‘rational’ and Islamically-sound alternatives to the current state of things.”
It wasn't until the mid-1980s that the members of the Murabitun truly began to set themselves apart from the run of post-hippie spiritual movements. Sheikh Abdalqadir came to believe that if there was anything a group of Western Muslims was best positioned to contribute to the world, it was an Islamic cleansing of the global financial system. He set his closest acolytes — in particular Rais (His Excellency, Supreme Leader, President, ruler, chief) Umar Ibrahim Vadillo, a Spanish convert to Islam — the task of studying classic Islamic texts on money, with a view to drawing out their modern implications. The result, published in 1991, was their Fatwa Concerning the Islamic Prohibition of Using Paper-Money as a Medium of Exchange. While Sheikh Abdalqadir is the spiritual commander of the Murabitun, Umar Vadillo is the organization’s political leader. “In selected articles and in his book, The Return of the Gold Dinar [1996], Vadillo outlines not only how the Islamic world can break with the West, but also how it can break the West. According to Vadillo the West exerts its power through the use of fiat currency (government-sponsored money) and the banking system which traffics in fiat currency, loaning it at usurious rates. Doing away with both of these institutions will liberate the Islamic world and Muslims from their control. Fiat currency is, in essence, phantom currency, and has only the value that the issuing body (first banks, then later, governments) decides that it has. Continued issuance of a fiat currency debases the overall value of the currency already in circulation and leads to increased inflation. Likewise, having a fiat currency as the predominant means of exchange removes choice from the consumer, and it puts his or her wealth in a state of dependence on the body or government issuing the currency. Rampant and uncontrolled credit has a similar effect on monetary value and prices. On the other hand, non-fiat currencies such as gold and silver — commodities with inherent value — are preferred media of exchange. On a practical level they are preferred because the wealth they represent is real, tangible. Their intrinsic value exists separately from any government, state or economy. Inflation is also reigned in with gold and silver.” Thus, the vociferous Vadillo is the main figure who is striving to champion the gold dinar and present it to a broader audience. “On a spiritual level, gold and silver are preferred because Imam Malik stated that money is ‘any merchandise commonly accepted as a medium of exchange’. Because fiat currency’s value is established by a state, it is inherently artificial and therefore haram [unlawful]. Likewise, gold-backed paper currency represents a debt, and according to Vadillo, payment via debt is also haram in Islamic law. Because all states currently employ fiat paper currencies, the Murabitun regard all states within the traditional fold of the Islamic world as inherently un-Islamic. Therefore, the first step to restoring Islam both commercially and politically is to follow its rules regarding what constitutes a legal medium of exchange. Because of their durability, intrinsic value, anonymity and portability, gold and silver stand as the most effective, religiously sanctioned and time-honored media of exchange. The second necessary step to restore Islam is the abolition of banks and usury. The Murabitun consider banking, whether it be Western or Islamic in name, to be nothing more than a form of financial neo-colonialism...Using gold and silver will liberate the individual from a state’s manipulation of currency.” Vadillo’s writings clearly demonstrates that what he objects to, and in no uncertain terms, is modern money itself: the dollar, franc, mark, pound, rupee, and all the other currencies of the world (essentially a form of “fraud”) have become “nothing but a pure symbol with no reality attached except the imposition of law.” And since that same unreality undergirds the entire monetary system, the only honest way to escape its taint is to strive for the entire system's destruction. The fatwa, in short, is a call to financial jihad, and the struggle, Vadillo predicts, will be an unconventional one (on a positive note, for years they have publicly proclaimed their contempt for terrorists of every stripe, and in the wake of the 9/11 attacks — Sheikh Abdalqadir issued a declaration condemning them as horrific and futile — their stance has only hardened). Muslim information warriors will hack into banking networks and “transfer money at random.” They will create dummy companies and “absorb debt that will never be paid back.” They will “raid” the diamond and gold markets, which, according to Abdalqadir's way of thinking, represent the hoarded wealth of the world's great usurers. But these are tactics for a war that has yet to come, and may not ever. For now, and before all else, there's one thing Muslims everywhere need to do in order to hasten the end of the paper-currency regime and with it the demise of capitalism, the liberation of Islam, and the restoration of the caliphate: they must work together to create a righteous alternative. They must bring back gold and silver as a standard medium of exchange. Vadillo and others have even suggested that as more Muslims — looking to honor Islamic financial commandments and subvert the Western economic system — turn to the gold dinar, this could cause a revolutionary/epochal shift in economic power from the West to the East.
So how does Abdalqadir, the Scottish redeemer of the Muslim world, and his radical organization plan to implement their ideological system and all of their reforms? “Just as economics exist on a micro and a macro level, so do the Murabitun. Currently more micro than macro, the Murabitun have been steadily working towards a transformation from the former to the latter. On the micro level at this time, the Murabitun claim to have groups in Scotland, England, Spain, Indonesia, Dubai, Denmark, Turkey, South Africa, Nigeria, Switzerland, Australia, Bermuda, Germany, the United States and Mexico.” There aren't too many Murabitun in the world; they number probably in the thousands. But they are avid proselytizers. Perhaps the organization’s most impressive “colony” is the Murabitun outpost in Chiapas, Mexico, a community of 600 local Indians converted in the midst of the Zapatista uprising. Scattered though they are, Murabitun leaders see one another often, convening regularly in the small Scottish town of Achnagairn, home to the movement's patriarch, Sheikh Abdalqadir. “On the macro level the Murabitun have been pushing for increased acceptance of gold and silver as media of exchange within the Islamic world.” Through their promotion of gold and silver as a standard medium of exchange, the Murabitun hope to unify the Muslim world economically. They also hope that the presence of a gold-backed currency in the world might truly break the hegemony of the overly traded greenback. The idea for a revitalized gold dinar entered serious discussion circa early 1991. “In 1992 the Murabitun began to mint their own gold dinars and silver dirhams based upon weights employed for these coins during the Khalifate...At first the organization used these coins strictly within their own communities.” The first exposition of the gold dinar and silver dirham was held in Universiti Sains Malaysia in 1998, at the 3rd International Islamic Political Economy Conference (IIPEC). “In 1999 the Murabitun expanded the opportunities for their coinage’s use by launching e-dinar, a gold-backed online service for purchasing, exchange and for paying Zakat.” Basically, e-dinar is a digital gold currency (similar to e-gold; launched in 1996, this rival to the major currencies of the world was the world's first 100-percent precious metal-backed Internet currency). Vadillo (his first name is given as Fernando), along with Zeno Dahinden (of Switzerland) and Dato’ Abdul Rahman Shariff (of Malaysia), established e-dinar Ltd. as an off-shore facility in Labuan, Malaysia. Naturally, a proper Islamic currency requires a proper Islamic country as its base. “Chaired by Vadillo and headquartered in Malaysia with vaults in Dubai, e-dinar claims to have had over 600,000 users since the site’s launch in 1999.” (According to other Internet sources, Dr. Douglas Jackson, Chairman of e-gold Ltd., forged a partnership with Islamic entrepreneurs in 2000 to launch the like-minded e-dinar that September; afterwards, e-dinar established their own mints in the United Arab Emirates and Indonesia; near the end of 2003, half of the company was bought out by an unknown international corporation in the Middle East, and in July 2004 they formally separated from e-gold. Julian Dibbell, in an article from the January 2002 issue of Wired magazine entitled In Gold We Trust, pondered why they were such close corporate partners: “Maybe Jackson wants to fix capitalism and maybe the Murabitun want to finish it, but both, at bottom, pursue a truth that isn't so much economic as it is spiritual. Both see in gold a purity that transcends the machinations of the merely mortal.”) Vadillo is hopeful that “along with gold and silver payments of Zakat, increased traffic on e-dinar will advance the transition from paper currency to commodity money and either put more dinars and dirhams in circulation or take dollars out of circulation. Vadillo states, ‘You want to be radical? You don't need to blow up the bank, just burn your bank account. And for that you are going to need an alternative. What is the alternative? E-dinar.’ Even though the Murabitun believe in the diminished importance of the state, they nevertheless have turned to states in an attempt to raise support for their dinars and dirhams as well as for their economic system. In part due to the 1997 Asian economic crisis, Malaysia’s former Prime Minister, Mohammed Mutathir, became a strong advocate of commodity money in the form of the Murabitun’s Islamic dinars and dirhams.” Apparently, Vadillo proposed the idea to prominent politician Dato’ Husam Musa (now one of the 3 Vice Presidents of the Pan Malaysian Islamic Party, commonly known as PAS; there is more information about Husam farther below, in the section that focuses on Kelantan) in the early nineties. During the economic downturn later that decade, Husam proposed for Vadillo to meet Mahathir, which he did. But only after the fourth time did he manage to convince Mahathir of the strength and logic of going back to the Dinar and Dirham. It has also been suggested that Mahathir seems to have gotten the idea for his own gold dinar from high-placed members of the Murabitun Worldwide Movement. Based on information gleaned from yet another source, the organization’s Muslim-friendly e-dinar was actually launched in Malaysia at the 4th IIPEC in November of 2000. While in that country, the e-dinar Ltd. team had a meeting with Mahathir. In June of 2001, Mahathir gave the keynote address at the 20th Al Baraka Symposium of Islamic Economies in Kuala Lumpur: “Recently there was a proposal to create a gold dinar which can have a specific value in the currencies of the different Islamic countries. All the Islamic countries must have a share in the international Islamic dinar as a trade currency and as national reserves. The dinar must be in gold and not paper. How practical this will be will have to be dealt with later when the volume of trade becomes big...Effectively the use of the Islamic dinar will create an Islamic trading bloc. Such a trading bloc will be a powerful voice in International trading regimes and the shaping of the new financial architecture...There has been much talk about an Islamic economic community. It is very difficult to realise this but the international Islamic dinar is quite achievable and can be the beginning of a closer economic cooperation between the Muslim countries.” Mahathir’s words surely must have inspired the folks at e-dinar. To have the Prime Minister of Malaysia as an ally in their endeavors would offer an amazing advantage. With the active support of a respected world leader, their vision would be all the more achievable. In July of 2001 Sheikh Abdalqadir (now a 71-year old world-renowned Muslim scholar/speaker/writer), accompanied by Vadillo, paid a courtesy call on the Prime Minister at his office in Putrajaya. In their one-hour meeting, Mahathir expressed his intention to hold a seminar to discuss the introduction of the Islamic gold dinar as a world currency and determine all the parameters of its usage and the dimension of its applications. I am unsure which idea Vadillo and Abdalqadir were “pitching”: the virtual-dinar (they were still “in cahoots” with e-gold at the time) or the actual-dinar. Perhaps both; all we know is that Mahathir decided that his version of the gold dinar was not going to be a tangible item. And in all the transcripts of his speeches/addresses, I saw no mention of the names of the two visitors from e-dinar. Perhaps this was wise on his part. Speaking to the press after the powwow had ended, Vadillo stated that the moment Malaysia establishes the gold currency as legal tender, then it will potentially be creating a currency for one billion Muslims — with 19.2% of the Earth’s population, they are one of the biggest and most homogenous communities in the world (one has to wonder, though, just how much appeal the Murabitun's financial extremism and pan-Islamic radicalism really holds for the average Muslim; after just a year of operations, the funds held in e-dinar accounts had barely added up to a single bar of gold). That single act would become the most important political act of the century. Vadillo said the expanded use of the Islamic dinar would be to increase its functionality and this need not go through the political process. “It should be through the spontaneous use of the coin. Let the people use the coin. There are thousands of people using the Islamic dinar in the Muslim world.” In his opinion, it did not depend how many people were trading with the gold dinar. “We can create a trading bloc using gold coins even if only 20 people are trading in it. Gold does not depend on the credibility of political authorities, gold depends on itself. That is why it is possible to succeed.” The outcome of the get-together pleased Vadillo because he commented to reporters that Malaysia could play the lead role in establishing the gold currency as legal tender. Meanwhile, Abdalqadir said that he was also confident that Mahathir would lead in the greater use of the real money through the Islamic gold dinar. Mahathir (and his and his Special Economic Adviser, Tan Sri Nor Mohamed Yakcop) would definitely become one of the most ardent spokesmen and proponents associated with the resurrected gold dinar. In August of 2001, as guest speaker of a USM public lecture, Abdalqadir spoke on the Restoration of Fiscal Islam, urging for the reinstatement of the gold dinar and silver dirham in the monetary system. In 2002, Vadillo briefed Mahathir on further developments of the Islamic dinar. “While Malaysia has not replaced its paper currency, the Ringgit, with Islamic dinars, the country is home to The Islamic Mint, the Murabitun’s headquarters for producing dinars and dirhams.” It is of utmost importance to know that Vadillo, the CEO of e-dinar, is also the president of the Islamic Mint. Officially, the Islamic Mint and e-dinar are separate organizations, but they're actually the off-line and online divisions of a single project, joined by ideological and personal ties.
Vhoss offers a few closing tidbits about the Islamic Mint: “Despite also the Murabitun’s belief that Islamic banks are inherently un-Islamic, this belief has not stopped them from working with certain banks in order to advance their movement. In November 2001, the Murabitun and the Islamic Mint launched their dinars and dirhams as available currency in the United Arab Emirates through Thomas Cook Rostamani and the Dubai Islamic Bank. Dubai’s Maktoum royal family have not made any official changes to currency usage in their Shaykhdom, but they have been supportive of the Murabitun. As stated earlier, e-dinar’s gold reserves are located in Dubai, and the Murabitun have positioned themselves in this economic center of the Muslim world in order to increase their visibility and to magnify their message. Besides Malaysia’s former Prime Minister and Dubai’s Maktoum family, other leaders in the Islamic world have vocally supported the Murabitun and their ideas. According to the Murabitun, in 1998 Egypt’s Mufti, Dr. Nasr Farid Wasel, issued a fatwa demanding that Islamic countries break with the U.S. Dollar and adopt Islam’s traditional practice of using commodity money. He claimed that since the United States left the gold standard in 1971, it has been enforcing the supremacy of the dollar via force of arms to the detriment of the Islamic world. Also according to Shaykh Abdalqadir, Dr. Erbakan, the former Prime Minister of Turkey, approved of using dinars and dirhams for paying Zakat and declared that, ‘This is the currency of the Muslims.’ Likewise, in the last year of his life, King Hassan II of Morocco accepted a symbolic gift of dinars and dirhams from Abdalqadir, and he promised to investigate means of using them for correct payment of the charity tax.”
Over the years, countless commentators have chimed in on the matter, voicing their opinions about the gold dinar. One of the more interesting ones was James E. Sinclair, Chairman/CEO of the mining company Tan Range Exploration Corporation. In The Seriousness of the Gold Dinar (his commentary on Mahathir’s presentation at the International Seminar on “Gold Dinar in Multilateral Trades”), Sinclair described the implementation of the gold dinar as a “watershed event in monetary history which is clearly, really and powerfully in the making...There is an Islamic currency coming. That is a fact. There is a high chance that this is it. The Dinar is a tactic nuclear monetary weapon of self-protection in the Islamic perspective. It is a statement by them of Islamic Self Consciousness and Islamic Self Esteem. It is an Islamic rally point for all 1.2 billion of that persuasion. It is coming soon and it is real. It may not be viewed objectively by the West, in the environment of a weak dollar now existing. That weak dollar situation looks to me as if it will get significantly worse before it gets significantly better. This is not low amplitude noise. This is a NOISE that may scream soon the unthinkable word, Remonetization. Here are the words of its architect.” Elsewhere, he admitted that he was “starting to think that the plan for the Gold Dinar and support from other Islamic nations is a planned offensive against the use of the dollar as a settlement currency for oil. It is perceived, and correctly so, that the Islamic world is controlled via the use of the US dollar as the main settlement currency.” He believes that there is a significant possibility that one day, there might be a united Islamic salvo back “at the US dollar via the Gold Dinar — not as a measure, but rather as a convertible currency.” Many nations are attempting to break away from the bankrupt International Monetary Fund system. “You see, the establishment of a gold-based currency is rebellion against the IMF as it is distinctly forbidden under IMF rules. The advent of the Gold Dinar would be the ‘Nadir’ of the IMF & World Bank. These are uncharted times. I believe that the Islamic Nations are quite serious about this and that in some form, it will happen on schedule or sooner.”
According to the Web-site of the Islamic Mint, “The Islamic Gold Dinar was officially launched on 7th November 2001”. (I’ve seen the coin erroneously referred to on the Internet as an “unofficial version” and “an unofficial privately issued version” of Mahathir’s gold Dinar.) Vhoss, as we saw in his paper, stated that the Murabitun began to mint their own gold dinars and silver dirhams in ‘92. I’ve also seen this exact date on several other sites on the Internet. One source specifically states that the initial pieces were struck by “Islamic Mint Spain in 1992.” I strongly believe that the silver and gold specie has indeed been in production since the early 90s, even though this is contradicted by the Islamic Mint’s official press release, which goes on to explain “The traditional Muslim coins and the deeper significance of their reappearance as currency”. The coinage of the Islamic Mint was made “available to the public in the seven Emirates of United Arab Emirates from branches of Thomas Cook Rostamani Exchange Company and Dubai Islamic Bank, who have joined forces with Islamic Mint for the launch. This is the first time in recent history that they have entered circulation through established and officially recognised channels, anywhere in the world. The launch marked a significant breakthrough in the coin’s return into the realm of usage...Because of the fundamental political consequences of the introduction of paper money instruments into the Ummah, the reintroduction of the gold money can be expected to be an equally significant milestone in the changing tides of the world economic — hence social — situation.” Ummah, incidentally, is the Arabic word meaning Community or Nation. It is commonly used to mean either the collective nation-state, or (in the context of pan-Arabism) the whole Arab world. In the context of Islam, the word is used to mean the diaspora or “Community of the Believers” (ummat al-mu'minin), and thus the whole Muslim world. “Speaking at the launch, Umar Ibrahim Vadillo, Pioneer of the Dinar’s reintroduction and director of E-Dinar Ltd, underlined several aspects of the coin’s importance.” Vadillo is also its designer. He “went on to assert that the Islamic Gold Dinar is a symbol of the unity of the Ummah, and that its reintroduction is indispensable for the reunification of the Muslim world.” In this, he echoed the inspirational statements recently made by Prime Minister Mahathir (at the 20th Al Baraka Symposium of Islamic Economies) in support of an Islamic trading bloc with the gold dinar as currency. The launch of the Islamic Gold Dinar “was reported in the local press, although it is clear that people’s understanding of its significance is on a variety of levels. Some grasp at the coin’s significant as part of Islamic cultural heritage, while failing to see the deeper implications. In any event, the publicity of the launch, together with the coin’s prominent availability throughout the cities of Dubai, Abu Dhabi, Sharjah and the other Emirates, will hopefully help vivify the economic debate which, until the question of the actual currency instrument is tackled, remains profoundly lacking in genuineness. In a time in which economics, veiled in mystery, occupy such an overwhelming position in people’s understanding of life, a clear and positive alternative which is actually distinguishable from the varied shades of theoretical explanations proffered by the masters of the realm — banks and bankers — is like a spark to the heart of the concerned Muslim.”
The dinar and the dirhams are strictly regulated. “According to Islamic Law...The Islamic Dinar is a specific weight of 22k gold [.917 fine] equivalent to 4.25 grams. The Islamic Dirham is a specific weight of pure silver [.925 fine] equivalent to 3.0 grams.” This adheres to “the standard laid down by Umar Ibn al-Khattab during his khalifate.” (Likewise, and by no coincidence, the e-dinar's primary unit of account is also 4.25 grams of gold.) “The Islamic Dinar can be used to save because they are wealth in themselves”, they can be “used to pay zakat and dowry as they are requisite within Islamic Law”, and they can be “used to buy and sell since they are a legitimate medium of exchange.” These coins represent the Islamic virtues of fair trade and honest value. They are difficult to obtain by Westerners, because “Entrusting wealth to non-Muslims is not allowed, but furthermore, taking a non-Muslim as a partner outside Dar al-Islam (where we stand over them) is extremely restricted, because they might cheat or might use our wealth in forbidden transactions.” The dinar/dirham are being privately used in 22 countries and is minted in 4 countries. Eventually, the list of countries where it is traded is likely to grow to a much larger number given the larger number of Islamic countries who are members in the Islamic Development Bank, which includes some 51 countries. In addition to the 1 Dinar (4.25 gm), 2 Dinar (8.5 gm), 1 Dirham (2.97 or 3 gm), and 5 Dirham (15 gm) pieces, I have also seen images of newer coins that pertain to the series: ½ Dinar (2.125 gm?), 8 Dinar (34 gm), 20 Dinar (85 gm?), and 10 Dirham (30 gm). In my attempts to obtain a Dirham from the Islamic Mint, I contacted a numismatic colleague named Mr. Haseeb Naz, who also happens to be a fellow member of the Unrecognised States Numismatic Society (http://groups.yahoo.com/group/UnrecognisedStatesNumismaticSociety/ and http://www.usns.info/). He asked a colleague of his, who was traveling to Dubai, to check on their availability and to make a purchase: “I am sorry to inform you that he checked 3 branches of Thomas Cook and 2 branches of Dubai Islamic Bank and it's Head Office. All of them told him that they are not dealing with Islamic Mint coins anymore and they are out of stock since for more than 6 months and are not going to deal with it in the future.” Mr. Haseeb Naz was later able to obtain a 1 Dirham piece and a 5 Dirham piece for me from another source in Dubai: e-dinar. Evidently, the company (https://www.e-dinar.com/cgi/shop.cgi) has decided to sell the coins directly to the public without using a “middle-man”.
Images of the coinage of the Islamic Mint can be viewed at the site of Mr. Haseeb Naz’s private collection:
http://chiefacoins.com/Database/Micro-Nations/Islamic-Mint.htm
Many other influential Muslims, also spurred by the 1997 Asian economic crisis, advocated moving towards a gold-based economy. As evidence of this, there was the international seminar Dinar-Dirham as The Solution to Monetary Crisis (held in Medan, Indonesia on March 14th, 2002). According to Norizan Esa, who summarized the entire proceedings for The Gold Dinar Research Group (based in Universiti Sains Malaysia, Penang), “This seminar was co organised by Dinar-Dirham Foundation, Indonesia and attended by various sections of the international community — diplomats, financiers, business community, academics and religious bodies. The seminar was successful in emphasising the importance of returning to the Islamic bimetallic currency of gold and silver, in place of usurious paper money.” At the seminar, Dr. Mahamad Hakimi Ibrahim (Coordinator of the Gold Dinar Research Group) “enlightened the seminar audience on efforts relating to establishing the use of this bimetallic currency” inside and outside Malaysia. He stated that “In December 2000, The Royal Mint of Malaysia was awarded the rights to mint Malaysian gold coins, named the Kijang Emas. The issue of the Kijang Emas gold coin was launched by Dr Mahathir early in 2001.” This took place shortly before his momentous speech at the Al Baraka Symposium. The Kijang Emas, however, is an official “Bank Negara Malaysia” coin, like all the standard coins from that country. There are 3 Krugerrand-like varieties: 200 Ringgit (1 Troy oz.), 100 Ringgit (1/2 Troy oz.), and 50 Ringgit (1/4 Troy oz.). Dr. Hakimi also declared that in 1998, as a result of the Asian economic crisis, “UPP Logam Mulia [a private mint in Indonesia?] minted gold coins named Koin Ongkos Naik Haji, with the specific purpose of savings for Hajj. Thus the people can guarantee the value of their savings against massive fluctuations in the Indonesia Rupiah. This was followed by the minting of the gold dinar and silver dirham for Islamic Mint Indonesia.” Another speaker, Dr. Zuhaimy Ismail, proposed “that the way to a stable currency in the region is by adopting the Islamic Gold Dinar (IGD) and the Islamic Silver Dirham (ISD) and establish real economy. It must be gradual, beginning with co existence of the banking system and the bimetallic currency of gold and silver. The ultimate goal of the IGD is to eliminate usury. The people should be allowed to choose the IGD as an alternative. The IGD and IGD-payment systems should develop in accordance to the general policy of promoting Islamic Trading, thus avoiding usury.” According to other sources on the Internet, the Royal Mint of Malaysia “rolled out its first batch of Gold Dinar for public use” in March of 2003. The inaugural pieces were the ¼ Dinar and the 1 Dinar. Apparently, the Royal Mint used the coins to partially pay the July salary of its workers. In an article by Maisara Ismail, “Employees of the Royal Mint were given an option to receive a portion of their monthly salaries, mainly those allotted for savings purposes, in the form of a quarter Gold Dinar or 1 Gold Dinar...The employees are encouraged to keep the Gold Dinar as a form of savings, to be kept safely as they would their gold jewellery...Half of the 110 Royal Mint staff opted for the salary scheme.” The chairman of The Royal Mint Exchange (a subsidiary of the Royal Mint), Datuk Dr. Awang Adek Hussin, stated at a press conference that at this initial stage, the Gold Dinar should be treated simply “as a commodity, particularly for savings purpose and not as currency or legal tender.” He said the introduction of the Dinar provided an alternative mode of investment for the public who would normally place savings in banks or purchase property or land. He added that there was great potential in expanding the use of the coins, particularly in transactions between Muslims, as a method of paying for zakat, dowries, for pilgrimages to Mecca, and even for utility bills. “This is an important first step. We have talked about Dinar for a long time in this country, and this is one way to concretise it.” He expressed hope that “more organisations, especially those involved in Islamic-based activities,” would encourage the usage of the coinage amongst its staff in order to further popularize the Gold Dinar within Malaysia’s private sector. Towards this end, the Royal Mint planned to approach Lembaga Tabung Haji, Bank Islam Malaysia, Bank Pertanian Malaysia and Bank Rakyat. The Malaysian Islamic Business Council (DPIM) even urged more financial institutions to promote the use and implementation of the gold dinar as a move to make it an alternative currency for domestic/international transactions on a wider scale in Malaysia and also globally. Additional denominations — ½ Dinar, 2 Dinar and 4 Dinar — were also scheduled to be produced by the Royal Mint. All five coins were supposedly showcased at the Organization of Islamic Conference (OIC) meeting in October of that year. I later learned that these pieces all have “The Royal Mint of Malaysia” prominently written on them in Arabic (along the top edge) and in English (along the bottom edge). I am unsure if the obverse design is exactly the same as the reverse design. I also do not know if these pieces are still being produced. The ¼ Dinar piece (1.06 gm) was packaged for distribution in a light red laminated card, the ½ Dinar (2.12 gm) in a green card, the 1 Dinar (4.25 gm) in a blue card, the 2 Dinar (8.5 gm) in a purple card, and the 4 Dinar (17 gm) in a dark red card. Unfortunately, these gold dinars are no longer being manufactured by the Royal Mint of Malaysia (RMM). It turns out that an entirely different version of the gold dinar is being produced and minted by Mariwasa Kraftangan Sdn. Bhd. According to my personal communications with Raja Liza, the Asst. Manager of Mariwasa’s Sales & Marketing Department, the company has ceased to use the old dies in favor of “a new and simpler design.” The dinars minted by RMM were made of 91.7% gold, and the ones made by Mariwasa are made of 999.9% gold. Mariwasa “was then the associate company of RMM. Now that the Managing Director has sold the RMM to another party, we still mint dinars but at our own factory in Kuala Kangsar, Perak.” I then commented that I thought the RMM, which makes all of the circulating coins for Bank Negara Malaysia (BNM), belonged to the government: “No, RMM is not government-owned, it was owned by an individual 100% named Allahyarham Dato' Megat Wahab.” But when the Managing Director became seriously ill, “he sold it to another party named Dato' Azli.” Sadly, things in general did not go well for the private mint, “and now BNM is opening tender for selling the entity. (Our late MD was very sad to hear it, 2 weeks before he died, he did said that he is very upset and dissappoint that the new management is not taking care of it carefully.)” It is worth noting, that “When RMM is still our associate company, the blank of gold dinar is made by Mariwasa and minted in RMM. Now we are minted in house. Thats mean that Mariwasa has been doing the dinar from the day one of its production.” I confessed that I felt the implementation of the gold dinar was an extremely meaningful occurrence. Raja Liza stated that “I myself love doing dinar project, which is kind of adventure to pursuade and convince people on the dinar truly mission. I have met with Umar Vadillo and his teory on this is good and I really appreciate him doing this especially for Muslim sake.” I also asked him if he was familiar with the Ongkos Naik Haji that I’d read about in Norizan Esa’s article. The coin, he responded, “is similar to dinar minted by Indonesia Logam Mulia, in fact the cost of minting it is the same as ours. only the design is different. I do not have the image of it but I do saw it from one of my dinars buyer.” I was not able to ascertain just how different the design on this piece is from the design of the RMM dinar.
KELANTAN GOLD DINAR: Mariwasa Kraftangan also produces another type of gold dinar — the Emas Dinar Kelantan (EDK) — for an altogether different client. The most interesting thing about these pieces is that they are specifically intended for distribution in the state of Kelantan (positioned in the north-eastern corner of Peninsular Malaysia). They even feature a prominent symbol that is based on the image that appears on the Kelantanese flag (it is also found on the inner portion of the state’s coat-of-arms). Kelantan, therefore, became the first state in Malaysia to launch its own unique gold dinars based on the Islamic financial system (in 1998, a historical step was apparently made by the Government of Kelantan and the Islamic Party of Malaysia when they adopted the Islamic Dinar as part of their policy; in a public event on the 28th of April, in the city hall of Kuala Krai in Kelantan, members of the Central Committee and other senior members announced their decision; that same evening, in a large gathering of 10,000 people in the mini-stadium Kelaburan, the Chief Minister of Kelantan personally endorsed the establishment of the Islamic Dinar as the currency of the Muslims). The EDK is available in 4 denominations: the ¼ Dinar (1.06 gm) in a blue card, the ½ Dinar (2.12 gm) in an orange-red card, the 1 Dinar (4.25 gm) in a green card (these 3 pieces, which are nearly identical to one another, are dated 1427 — they were issued on 27 Shaban 1427 AH, which corresponds to 20 September 2006 CE), and a commemorative 2 Dinar (8.5 gm) in a yellow card. This piece, dated 2007, says “Ulangtahun Hari Keputeraan Sultan Kelantan” (in English letters) and the card informs us that it was issued “on the royal occasion of the 57th birthday celebration of His Royal Highness the Sultan of Kelantan”, Ismail Petra ibni al-Marhum Sultan Yahya. But the Sultan was born on November 11th, 1949 — so his 57th birthday actually took place in 2006. It is worth mentioning that Raja Liza showed me an official proposal on Mariwasa stationery that contained 3 computer-generated designs, all dated 1427 as well as 2006, for the upcoming birthday coin. The wording on all 3 designs was slightly different than the wording on the coin shown at the official Web-site of the EDK (http://www.dinarkel.com/): “Sempena Hari Keputeraan Sultan Kelantan”. Therefore, I am unsure whether one of those designs was selected for an initial birthday coin issued in (and dated) 2006. I am guessing that this was not the case, because the approval process was so lengthy (and that it involved several levels of bureaucracy, including a requisite nod from the busy Sultan himself) that by the time everything was set to go, it was too late for the coin to be dated 2006. Incidentally, ulangtahun means “yearly celebration”, hari keputeraan means “birthday”, and sempena means “coincides with”. According to Raja Liza, the copyright for the design of the ¼ Dinar, ½ Dinar, and 1 Dinar is owned by the Kelantan government; Mariwasa merely manufactures the coins for them, and Kelantan sells them to the public. The commemorative piece, however, was designed by Mariwasa and is intended for its own clientele. Mr. Haseeb Naz explained to me why the coins are held in “an extra-thick transparent plastic laminated on a cardboard with a hole in the center for the coin. Very strong indeed. Probably to make a concept of a banknote. In the past, if you notice 10% or more coins were always cut from the edges or rubbed strongly to reduce the gold weight and get more purchase out of it. Imagine you have 50 gold Dinars coins and you slightly cut the edges of each of them to get an extra 2 coins from them as weight. Most probably the plastic laminated is to get rid of this theft in stealing and reducing the gold contents of these coins like in Ummayyad Abbassid, etc dynasties coins. Ottoman Empire introduced reeded edge coins to easy get noticed of these kind of theft.”
According to the EDK Web-site, “The Kelantan gold dinar is a denomination that was created by the Government of the Malaysian state of Kelantan in 2006...The main usage of Kelantan gold dinar is for savings, alms (zakat), marriage dowry (mahar), gift and investment but not as legal tender.” From their mission statement: “Gold is the safest medium of exchange when the politic and economic is unstable. The stock exchange once defisit thousand of millions while the gold value increase nearly 40% at the same time. Keep it at the safe place — Gold.” And the best way of all to preserve one’s property is to possess the inflation-proof Kelantan Gold Dinar. “As a proactive approach, the Kelantan goverment introduce gold dinar to the society as an effort to bring back the function of dinar in Islam economy.” The coins can be obtained at all 11 Ar-Rahn (Islamic Pawn Shop) outlets in the Kelantan province. From the get-go, according to press releases from 2006, it looks like the Kelantan state government had intended that the gold dinar (the silver dirham was also part of the initial plan) currency would first be implemented in the state's Islamic system of pawnbroking, the Ar-Rahnu. According to Datuk Husam Musa (chairman of the State Public Administration, Economic Planning, Finance and Community Development Committee), the public could buy the dinar as well as exchange it for cash at the Ar-Rahnu pawnshops. “If there is no problem with the Ar-Rahnu, there is a possibility that it can be implemented in other sectors,” he told reporters in May of 2006, after opening a seminar on financial economy and Islamic banking in Kota Baharu. Husam, who is in charge of the EDK programme, also stated that when everyone had fully understood the matter, the state government hoped to use the currency in paying the salaries of its public servants and its staff. Quite simply, “The state government employees can choose either to be paid in dinar or ringgit.” Husam revealed that it was the state government's aspiration to open its own bank based fully on Islamic banking system. “Although it is going to take a long time, we are confident of opening this bank,” he added. Husam also acknowledged that the coins' introduction has another purpose — one which is connected to Islamic ideology of the PAS (Pan Malaysian Islamic Party) Government, namely to slowly introduce a form of currency which is in accordance with Syariah (Sharia) Laws. At around the same time, Husam mentioned that PAS would invite former premier Mahathir as a keynote speaker in a seminar on the use of the dinar/dirham. While Husam was in the process of generating awareness about the value and benefits of the EDK, many of his statements about the gold dinar caused tons of controversy. Though he explained that the main rationale behind the introduction of the EDK was their use as a savings and investment instrument, he also made public statements admitting that he hoped the dinars would one day be accepted by the local business community as a form of legal tender. So while at times Husam indicated that the coins were not supposed to act as an alternative form of currency to paper money, at other times he also made contradictory remarks: “We are not encouraging people to use the coins as legal tender. But if they decide to do so on their own and the public accepts it as a medium of exchange, then there is nothing we can do about it. Like it or not, the gold dinar has a natural value that you cannot ignore, which is why for centuries it was used as a form of currency,” he said. Already two establishments in Kelantan have decided to accept it as legal tender in emergencies, the Ansar Hotel and Bilal Supermarket, both in Kota Baru. Unfortunately, all this hoopla about the gold dinar caught the attention of many people in the federal government — including Prime Minister (and Finance Minister) Badawi — all of whom were worried that it may violate Bank Negara Malaysia regulations. The Prime Minister said that he would not agree to Kelantan making the dinar and dirham as a currency, on the grounds that state governments were not allowed to issue their own currency. Husam replied that Kelantan actually had no intention of making the dinar a currency for the state but rather a form of savings for the people in the state. Husam stressed that the dinar would not be the official currency of Kelantan as alleged in some quarters. He tried to reassure everyone that the implementation of the EDK was merely for the Kelantanese people to understand the history and tradition of the dinar. To be on the safe side, however, the state government formed a committee to conduct a study on the usage of the gold dinar and to ascertain whether such a coin was against the law. “However, the committee found out that it was not against the regulation of Bank Negara. As such, there was no need to get the approval of Bank Negara to introduce the gold dinar,” said Husam. The Kelantan Gold Dinar was issued — without a legal tender status, of course — on September 20, 2006. Immediately, the gold dinar was in demand as an investment, the first step in the PAS-led State Government's aim of establishing an Islamic currency. Hundreds of customers in Kelantan readily snapped up 1,600 pieces of the EDK coins the moment they went on sale. “We even received complaints from frustrated buyers who did not get to buy one as the demand exceeded what we expected,” boasted Husam.
Images of the Emas Dinar Kelantan can be viewed at the site of Mr. Haseeb Naz’s private collection:
http://www.chiefacoins.com/Database/Micro-Nations/Kelantan.htm
KEDAH GOLD DINAR/SILVER DIRHAM: The mania for bullion coinage has manifested itself in another Malaysian state, Kedah (located in the northwestern part of Peninsular Malaysia). A set of gold dinars and silver dirhams, commemorating the golden jubilee of Tuanku Abdul Halim Mu’adzam Shah’s accession to the throne, has been minted by E-Qirad Sdn Bhd — this entity is “a wholly owned subsidiary of IGDX Holdings Ltd”, which in turn is an Australia-based investment holding company. Based on press releases found at the IGDX Web-site (http://www.igdx.com.au/site-news/moa31102007.aspx and http://www.igdx.com.au/site-news/kggPressRelease25062008.aspx), the coins were specifically produced “to mark KDYMM Sultan Abdul Halim Muadzam Shah's rule in Kedah which will be entering into its 50th year in 2008”. The first press release (October 31, 2007), states that “E-Qirad is an established company which has acquired unique experience, special skills, technique and knowledge with reference to the trading of gold and minting of gold and silver coins. Commenting on the collaboration with Kedah state government entities, Group Executive Chairman, Dato' Dr Shamshudeen Yunus said that the company is pleased to be associated with them and feel honored to be given the opportunity to participate in making KDYMM Tuanku Sultan of Kedah golden jubilee celebration in 2008 more meaningful. The minting of the commemorative coins will be done at Kazanamas Gold Refinery Sdn Bhd [in Penang Island], a subsidiary of IGDX Holdings Ltd., which features one of the most advanced refining facilities and equipment throughout Asia. Through its high quality and modern equipment, Kazanamas Refinery is also capable of producing gold bullion with 995 level of gold purity. The minted coins will be packaged in 4 different types of packages comprised of various denominations to serve different segments of the market.” Two hundred “limited edition box sets” would be auctioned off to the public. The next press release (June 25, 2008) confirms that the Golden Jubilee Commemorative Mu'adzam Shah Gold Dinar & Silver Dirham were officially launched by the Kedah Gold Gallery (this entity “is jointly owned, managed and operated by IGDX Holdings Ltd and Dato’ Seri Tunku Puteri Intan Safinaz”). In conjunction with the official unveiling of the coins, “The first IGDX Gold Gallery store opened today in prestigious Alor Setar, Kedah, Malaysia.” According to Shamshudeen Yunus (Group CEO), “With this Gallery, we will continuously upgrade our 22 Wakalas (agents) worldwide in stages. More IGDX Gold Gallery stores will be opened in high profile locations in the next couple of years”. He added: “We want to offer a more relaxing and uplifting retail environment for our customers to truly experience the power of investing in physical gold.” The Kedah coins consist of: 20 Dinar (85 gm), 8 Dinar (34 gm), 2 Dinar (8.5 gm), 10 Dirham (29.75 gm), and 5 Dirham (14.875 gm). One side features a profile of the Sultan, and the other side features the coat-of-arms of Kedah. They can be viewed at the official Web-site of the Kedah Gold Gallery (http://www.kedahgoldgallery.com.my/).Return to the Main Index