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Islamic investors have shied away from gold-related financial products. This is because religious laws.

Islamic financial institutions – which hold over US$2 trillion in assets – don’t have a lot of money invested in precious metals.

However, a “Sharia Gold Standard” – which will clarify and streamline Islamic gold-investing rules – is on track to be implemented by the end of the year

This means that the approximately 100 million active Muslim investors will soon have gold as an investment option.

Once the Sharia Gold Standard is adopted, it’s very likely asset managers in key Islamic finance countries like Bahrain, Qatar, Indonesia, Saudi Arabia and Malaysia will start aggressively offering gold investment products like ETFs

If only a small percentage of the US$2 trillion in Islamic finance assets move into gold products in 2017, the gold market – currently undergoing a pullback in its ongoing bull market – will have a huge new source of demand.

Reference: Business Insider