5 Dirham – Medina 999 Fine Silver

Dirham

Silver is one of the most stable currencies 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 ﷺ 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 Pound Sterling or the U.S. dollar or any other paper currency in the last 25 years?

In the long term, the bimetallic currency has proven to withstand the test of time. It has historically survived despite all attempts by governments to transform it into a symbolic currency by imposing a nominal value different from its weight.

Silver 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 Silver is both important, but the most significant fact is that Silver 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.

Silver is not like this. A piece of silver is independent of the financial system, and it’s worth is underwritten by 5,000 years of the human experience.