Comment on The rich are ‘renting’ out their idle gold bars for income as prices remain at historic highs
moody@lemmings.world 3 days agoBasically the borrowers are using gold-to-gold loans instead of cash loans to buy gold to avoid problems like price fluctuations.
They’re using the gold for jewelty making or industrial processes, and then returning different gold with interest paid back in gold.
So the lenders are lending out gold, and getting back more gold as interest with no money changing hands.
rezad@lemmy.world 3 days ago
my unpopular opinion was that this is very near sound money in islam (gold or silver) until I saw the interest part which is forbidden in islam.