The $10 you keep in the bank reduces in buying power every year. Take this analogy as an example;
In Year 2005
$10 can buy you an ounce of Silver. The same $10 can buy you 3 plates of chicken rice. In Year 2012
$10 can only buy a fraction of an ounce of Silver. If someone were to keep their $10 in a bank, it only generates a meagre of interest. With an ounce of Silver, he can now buy 9 plates of
chicken rice. However, saving $10 in a bank, he can only afford to buy 3 or less plates of chicken rice. Smart savings
We all know the importance of savings for our future. Smart saving goes further in ensuring that our wealth are available for us and does not suffer from inflation. In fact we are leveraging on the reducing value of money that eventually causes the rise of the gold and silver prices. Riba/Interest free savings - closer to us that we think
Have we not heard of the verses in the Quran and the hadith of our prophet to the importance of avoiding riba? The interest that the bank gives us, the repayment of our loans, isn't that riba? It is difficult to accept that we are involved in riba without out consent. Even if we don't want to accept the interest, or we don't have loan, we are indrectly fueling the riba economy by putting our money in the banks because banks uses them to lend money to its customers and charging interest on top of the borrowed amount. We know this is the situation and we cannot avoid them at the moment. May Allah help us all. However, do you know that we can reduce our involvement by converting half or 3/4 of our savings into gold? By doing so, we are reducing our contribution to the riba economy. The good out of this is the gold that we keep as savings appreciate in monetory value and selling it is just pure trading. Thus, there is no riba invovled!
