Gold and silver are the most stable currency the world has ever
seen
From the beginning of Islam until today, the value of the Islamic bimetallic
currency has remained surprisingly stable in relation to basic consumable
goods:
A chicken at the time of the Prophet, salla'llahu alaihi wa sallam,
cost one dirham; today, 1,400 years later, a chicken costs approximately
one dirham.
In 1,400 years inflation is zero.
Could we say the same about the dollar or any other paper currency
in the last 25 years? In the long term the bimetallic currency 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.
Reliability
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.
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THE GOLD DINAR RESEARCH GROUP 