The usage of gold Dinar.
- Dinar can be used as saving/investment
- It can be used to pay zakat
- It can be used as a Mahr (Mas Kahwin)
- It can be used as a gift
- It can be used to buy and sell as it is a legitimate medium of exchange.
Gold have intrinsic value. Due to its beauty, rare and unique nature, gold is valued by mankind. Since 5000 years ago until today, mankind still value gold. Historically, gold has been a proven method of preserving value when a national currency was losing value. By saving a portion of gold as your asset you already have a good financial insurance policy.
It can be used to pay zakat
The literal meaning of the word Zakat is: grow (in goodness) or 'increase', 'purifying' or 'making pure'. The vital importance of Zakat is reflected in Islamic law:
"My mercy encompasses all things, but I will specify it for the righteous who give Zakat" (7:156). Zakat must be given away "on the day of harvest" (6:141). Zakat can only be paid with tangible merchandise, called in Arabic 'ain. It cannot be paid with a promise to pay or a debt, called in Arabic dayn.
From the beginning the zakat was paid with dinars and dirham. Most significant is that the payment of zakat was never allowed in paper money during all the ottoman period right until the fall of the Caliphate.
Under Islamic law Zakat is a form of Muslin tithing to God for the support of the less fortunate or jihad and it is to be paid in gold or silver, not paper currencies without any intrinsic value. Paper-money is called fulus, because it only represents money and does not have value as merchandise. It follows that since Zakat cannot be paid in fulus, which has no value as merchandise, it cannot be paid in paper-money, which value as weight of paper is null. On this basis, it becomes clear the urgent need to restore the use of the Dinar and the Dirham as payment of Zakat.
It can be used as a Mahr (Mas Kahwin)
The mahr (dowry) is something that is paid by the man to his wife. It is paid to the wife and to her only as an honor and a respect given to her and to show that he has a serious desire to marry her and is not simply entering into the marriage contract without any sense of responsibility and obligation or effort on his part.
One of the more common names for it is Al-Sadaaq which comes from the word sidq meaning honesty or sincerity. As-San'aani (Book: Subul As-Salaam) explains its significance: "It indicates the sincerity of the husband's desire for his wife. In the religious laws before us the dowry used to go to the guardians."
In Malaysia, for example, one of the famous artists that use dinar as Mahr is M. Nasir when he marries Marlia Musa. Their mahr is 13 pieces of gold Dinar.
It can be used as a gift
Since gold is beauty, rare, have its own intrinsic value, increase in value over the time and cannot be destruct. It can be a very good gift. This precious metal will be appreciated by human. That is why we can see the older generation passing gold to the younger generation via gold jewelry and other form of gold i.e. Ring, necklace, bracelet, gold coin etc.
It can be used to buy and sell as it is a legitimate medium of exchange
Gold is money. Why? Because it fulfills, to an extent unmatched by any other physical commodity (Silver comes closest), all the pre-requisites of a money. It was rare and prized long before the concept of "money" was ever discovered. It has many other unique uses, and always has had.
Gold's beauty, scarcity, unique density (no other metal outside the platinum group is as heavy), and the ease by which it could be melted, formed, and measured made it a natural trading medium. Gold gave rise to the concept of money itself: portable, private, and permanent.
But for nearly three thousand years (since the first Gold coins were struck in Lydia in 700 BC) Gold's primary utility has been recognized as a medium of exchange.
The history of Gold as money in modern coin form spans 2630 years, from 700 BC to about 1930 AD. The history of nothing but paper and base metal and silver coin in circulation spans about 40 years from 1930 to 1970. And the history of paper and base metal coin as "money", with no connection to Gold (or silver) anywhere on earth also spans a period now approaching 40 years - from 1970 to date.