In the froth-foam Investment

"Allah sends down water (rain) from the sky, the water flows in the valleys according to their size, then the current was carrying the expanding foam. And from what (the metal) that they were melting in the fire to make jewelry or tools, there are (also) her like froth froth flow. So Allah made a parable (for) is right and falsehood. As for the scum it, will disappear as something worthless; as for the benefits the people, then he remains on earth. So Allah made the parables. "(Surah 13: 17).

End of the 80s when the bloom-proliferation promoted equity investment in the community, I still remember the people queue to buy whatever shares are offered to the public.

Early in the 90's when a relatively cheap apartment offered to the public by a developer - people to queue since the night before to be able to buy an apartment the next morning.

In the agricultural world, we too often hear of products priced destroyed precisely at the time of harvest - but when the farmers began to plant it-do the price is exorbitant.

Which is always the victim in every movement involved - follow these are the most do not understand the science - or the most common in the field to those investments.

That is why, in the movement Dinar dissemination in the community - not the volume of sales that we're after, but comprehension. See examples in my writing on 21 February 2009 and then the half put the brakes on the flow of purchasing Dinar.

The same thing we did on the guests who came, who came for the first time and want to buy Dinar in large quantities - God willing we always recommend to first understand what and how this Dinar, price fluctuations and so on. Until the applicant comfortable with what will be bought.

In the agricultural industry for example, I learned from my teacher who proved to be successful in this field as I wrote on 29 November 2008. He gave an example if you want to plant corn, corn what would you plant? . Sweet corn that tastes good when you enjoy her picnic to the top, or corn that tastes mediocre food for livestock?.

Most ordinary investors will choose to plant sweet corn because it fit her taste. But for those who invest seriously in a maize of this, who will review the first sweet corn market, who the ordinary corn market, how this trend needs corn and so on.

How large is the market sweet corn consumed by people who only once this time, compared with ordinary corn market into industrial raw materials? The second is what turned out much larger market as well as more continuous needs.

Most ordinary investors see the froth and take investment decisions based on what appears on the surface, otherwise investors are more observant will notice things that are more fundamental and invest only after truly understanding it.

In terms of investment Dinar, if you decide to sell or buy just by taking into account fluctuations in price or cursory information from friends - then maybe you're just investing by looking at the froth. Fluctuations in the price of dinar is just froth caused by paper money whose value is 'driven' by the world's central banks and currency speculators.

Conversely, if you continue to follow our studies and various other information sources that are fundamental to the gold industry is, before you decide to invest - then Insha Allah you can become a serious player in this field. Allaah knows best.

Know No Boundaries Gold Price Up...

The title of this paper, I get the opinion of Peter Munk in the Financial Times - London last weekend. 

  

Peter Munk is the founder and chairman of the company's largest gold miner in the world, Barrick. Peter is now 82 years old, has spent three-fourths of her age or around 60 years in the gold mining industry, so the opinion that he would express an opinion rather than just anyone. 

  

Here is a summary of the opinion that the master of the world gold: 

  

· People used to assume that the most secure investment that can be done in modern times people are investing in shares of UBS Switzerland, but because of this assumption is investing billions of dollars wiped out by the crisis that has engulfed. 

· A large and small are now hard to answer a simple question: Is there a safe place to invest in this era who did not lose because of it?. Because no easy answer to this question, many people make gold as a safe haven - a safe haven for investment. 

· Gold which last month reached U.S. $ 1,000 / oz; indeed it is possible that for a while this price is the price that has a height (inflated) - meaning that this price is likely to be corrected down temporarily as happens these days. 

· But the opposite also can occur. Because the gold market is a relatively small market in the world, if there is some central banks the world or one instance the UAE central bank does not believe that Obama's efforts to rescue the American economy will be successful, then the central bank was changed (in part) its reserves from U.S. $ to gold - then some of the decisions of this kind would simply toss the world gold price to a value above U.S. $ 2.000, -. 

· Economy of the world could have been recovered, but the trauma or feeling unsafe investments in shares / securities will likely continue - meaning safe haven of gold still needed. 

· Other opportunities when the economy recovers is a need for people to jewelry will rise. Because of this jewelry industry represents 58% of world gold demand - see my article dated 26/02/2009 - the resurrection of this jewelry industry would significantly increase world gold demand - which also means higher prices. 

  

On the basis of the opinion of Peter Munk with his experience in the gold industry of 60 years, plus the points mentioned above - then I tend to agree with Peter this - that there is no upper limit of the price of gold, meaning that gold prices could rise to any number - although not Nobody knows exactly when this could happen. 

  

I agree with the opinion is also consistent with price statistics Dinar last 40 years that I present based on data from the Kitco gold price as the graph above. 

  

So the price of gold / Dinar currently 'relatively low' might be down again in the near future, but the factors that will push it up (back) also did not lose much. Allaah knows best.