I'm far from rich, but could someone name a few reliable and established Islamic banks where I could put my money? Is it risky to put your money in Islamic banks? Because if that's the case, then I prefer not dealing with any banks at all..
^^ Thanks for that. I also hope to get answers from people who have had experiences with Islamic banking. Unfortunately, years ago, I had made some very bad investment so I'm very careful now. I'm not willing to take unnecessary risks.
^^ Thanks for that. I also hope to get answers from people who have had experiences with Islamic banking. Unfortunately, years ago, I had made some very bad investment so I'm very careful now. I'm not willing to take unnecessary risks.
economic depression
wall street fed and corporations screwing people over
making an investment these days is more stupider than literally cutting your leg off for the fun of it.
The advantage of Sharia (Islamic) Bank is, it is based on profit sharing not riba.
When Sharia bank give a loan, they always watch how the debtor use the money. Different than riba based bank, they give loan and let the debtor manage it without supervision. In many cases the debtor use the money not according to the proposal. In example, they said they need money for business expansion, but in fact they use that money for buy properties. And in cases like this usually the debtor cannot pay back the loan.
So, if you want to put your money in bank, sharia bank is saver.
But is it safe or can you suddenly lose all your money?
Suddenly lose ?. Maybe, probability for it is very small.
Bank is a place where we put our money, then the bank borrowing it to someone else. If this someone else cannot pay back the loan, our money can lose.
I don't know about other countries, but from observation in my country, sharia bank is safer because it cleans. There is no 'dirty game', there is no conspiracy in sharia banks. In example, we cannot pay sharia banks officer to close their eyes when they find we use sharia bank's money for something wrong.
Different than conventional banks in my country that often robbed by the owners. I cannot count how many banker who escaped to foreign countries, how many bankers that jailed because they are too much. But the moneys are never come back.
The latest case in Indonesia which people and govt lose their money is 'Century Bank case'.
25:36 And the true servants of the Most Merciful are those who walk the earth with humility and when the ignorant address them, they respond with words of peace.
For your information, sharia banks in Indonesia are Indonesian origin banks such as : Bank Muamalat Indonesia (pioneer in sharia bank), Bank Syariah Mandiri, BNI Syariah, etc.
Currently I didn't found foreign sharia bank in Indonesia.
^^ Thanks for that. I also hope to get answers from people who have had experiences with Islamic banking. Unfortunately, years ago, I had made some very bad investment so I'm very careful now. I'm not willing to take unnecessary risks.
A bank is a bank is a bank is a bank. It doesn't matter whether it is Islamic bank or conventional bank, you will lose money if you are going to lose money. Islamic bank is not a guarantee of capital preservation.
Infact, if you are looking for real preservation of wealth, invest in gold. Just buy gold bars and keep them. That is the only form of real preservation of wealth, regardless of effects of inflation.
However if you intend to use gold bars to flip a profit, then it might be a bad idea.
Read my post here Articles on Islamic Finance regarding loss of wealth due to fractional banking, which is something that Islamic banks practise as well.
There are numerous guides out there to help make secure islamic investments based on islamic principles and make you a wealthy muslim.
My sincere suggestion to you is don't worry about your losses, infact use those as an expensive lesson and learn from them, but go ahead and invest using sound principles and a good wealth mastery guide for muslims.
Allah says to His Messenger SAW: "Tell them, O Muhammad, even if you had authority over the treasures of Allah, you would refrain from spending for fear of exhausting it.''
A bank is a bank is a bank is a bank. It doesn't matter whether it is Islamic bank or conventional bank, you will lose money if you are going to lose money. Islamic bank is not a guarantee of capital preservation.
Infact, if you are looking for real preservation of wealth, invest in gold. Just buy gold bars and keep them. That is the only form of real preservation of wealth, regardless of effects of inflation.
However if you intend to use gold bars to flip a profit, then it might be a bad idea.
Read my post here Articles on Islamic Finance regarding loss of wealth due to fractional banking, which is something that Islamic banks practise as well.
There are numerous guides out there to help make secure islamic investments based on islamic principles and make you a wealthy muslim.
My sincere suggestion to you is don't worry about your losses, infact use those as an expensive lesson and learn from them, but go ahead and invest using sound principles and a good wealth mastery guide for muslims.
Allah says to His Messenger SAW: "Tell them, O Muhammad, even if you had authority over the treasures of Allah, you would refrain from spending for fear of exhausting it.''
Salam brother,
Thank you very much for the information, I've read your other post too which was beneficial. I have one last question and would appreciate if you could answer: if I keep my money in gold, could I easily exchange the gold for money whenever I want? Are you sure that I wouldn't face any problems?
Also, it seems very risky to keep gold at home? And does it matter which type of gold? I will PM you bro, but you can answer here if you want, it doesn't matter.
Last edited by Argamemnon; 12-31-2009 at 05:34 PM.
My apologies for answering this question a bit late.
Firstly, let me answer your second question; Depending on where you live keeping gold at home can be risky. If you feel you are living in a place where this would be a risk, or where you will be consistently concerned about your wealth, keep the gold in a safe deposit box at the bank. This will keep you safe from much heartache.
Secondly, each country has their own reputed gold market, or bullion market. In England the reputed traders are goldline.co.uk, in the US you can pick up gold coins from the treasury, in the UAE and other middle easter countries ARY are reputed gold vendors.
Gold is usually sold in coins or bars. For investment purposes, the larger the bar is the cheaper you can get it for, and by corollary the harder it maybe for you to sell. However, if you sell to the vendor form where you purchased it, it is very easy to sell. The vendor will charge some commission on sale, however this is not much, inshaAllah.
Now the obvious question whether you should buy gold or not. If this is you are thinking of putting all your money in gold then this is not the right decision. I recommend using the following configuration for your investment strategy
1. 3 months expenses in cash, either in a current account or in physical cash with yourself.
2. 6 to 12 months expenses in gold, invested in values worth 3 months of expenses.
3. Any excess cash after that invested in various other forms of ventures including stock market, mutual funds, real-estate, partnerships and businesses.
If you are looking for a specific guide for muslims visit wealthymuslims.com
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