News all around the world about gold & silver

Use Of Gold Dinar Will Stop Currency War Former Prime Minister Tun Dr Mahathir Mohamad KUALA LUMPUR, Nov 1 (Bernama) -- Governments should consider the use of the gold dinar to stop a currency war, says Former Prime Minister Tun Dr Mahathir Mohamad. He said the US dollar depreciation created problems for countries as they needed to devalue their currencies in order to overcome the loss of competitiveness. "If every country devalues its currency, there will be a currency war and, of course, it will contribute to the crisis," he told reporters after delivering a keynote address at the First World Conference on Riba here Monday. Mahathir said gold has an intrinsic value and is therefore a better measure of value than currency notes. "Currency notes have no backing unless it is sought after by people. If countries start to devalue their currencies, there will be chaos in international trade," he said. On Islamic banking, Mahathir said financial institutions must be careful when introducing new products so as not to duplicate those already offered by conventional banks. He said Islamic financial institutions should adhere to Islamic banking principles even when there is an opportunity for them to take over the responsibility of conventional banking. -- BERNAMA

Utah Moves to Return to Gold Currency
It seems the Utah state House is taking the advice of Texas U.S. Rep. Ron Paul, officially stamping gold and silver as legal tender. The Utah House on Friday voted 47-26 to pass HB317 by Utah state Rep. Brad Galvez, R-West Haven, and sent it to the Senate. The measure would recognize as legal tender gold and silver coins issued by the federal government. The measure would also allow the state of Utah to form a commission with the sole intent of examining whether Utah should consider an alternative form of legal tender, possibly gold or silver. “This is a step in preparedness, a step in security,” Mr. Galvez said, “that allows us to be able to help hold up our economy as the dollar continues to shrink. The move comes as proponents of the gold standard continue to speak out. Texas Rep. Ron Paul is among the most vocal of the group calling for a return to a pegging of the dollar to the price of gold. RBZ urges gold-backed Zim dollar The central bank says the country must consider adopting a gold-backed Zimbabwean dollar warning that the US greenback’s days as the world’s reserve currency are numbered. Government ditched the Zimbabwe dollar in 2009 after it had been rendered worthless by record inflation levels and adopted multiple foreign currencies with the US dollar, the South African Rand and the Botswana being the most widely used. Finance minister Tendai Biti says the country needs at least six months import cover and a sustainable track-record of economic growth, inflation stability and above 60 percent capacity utilisation in industry before the Zim dollar can be brought back into circulation. However central bank chief, Dr Gideon Gono said the country should consider adopting a gold-backed currency. “There is a need for us to begin thinking seriously and urgently about introducing a Gold-backed Zimbabwe currency which will not only stable but internationally acceptable,” he said in an interview with state media. “We need to re-think our gold-mining strategy, our gold-liberalisation and marketing strategies as a country. The world needs to and will most certainly move to a gold standard and Zimbabwe must lead the way.” Gono said the inflationary effects of United States’ deficit financing of its budget was likely to impact other countries to leading to a resistance of the green back as a base currency. “The events of the 2008 Global Financial Crisis demand a new approach to self reliance and a stable mineral-backed currency and to me, Gold has proven over the years that it is a stable and most desired precious metal,” Gono said. “Zimbabwe is sitting on trillions worth of gold-reserves and it is time we start thinking outside the box, for our survival and prosperity.”  More story @ http://www.islamicmint.com/news_articles