Gold dealer Goldcore has said it plans to offer a sharia-gold trading platform for use by Islamic financial institutions in the first quarter of 2017.

The platform is designed to offer segregated gold accounts with the option of physical delivery, the company said in a statement.

This comes after the launch of the Shariah Gold Standard by the World Gold Council (WGC) and Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) yesterday. 

Goldcore said that both the AAOIFI and the World Gold Council have examined its new platform and are happy that it meets the new 'Sharia gold Standard'. 

Traditionally, gold has played a very minor role in Islamic finance and there has been little activity beyond spot trading, partly because of uncertainty over what is religiously permissible. 

The new standards, which also apply to silver, could help to change this. 

The Bahrain-based AAOIFI spent a year working out the new rules on gold trading and agreed them last month. 

The guidelines will help to increase acceptance of gold products among Islamic investors while giving Islamic banks new liquidity-management tools, said Hamed Hassan Merah, secretary-general of AAOIFI.

The group's standards are followed in whole or in part by sharia-compliant banks around the world.
 

Goldcore said the new standard will affect the gold market globally as 1.6 billion people will be able for the first time to use gold bullion products and platforms that offer physical delivery, allocated and segregated gold ownership. 

Goldcore's chief executive Stephen Flood said the company has been working on an institutional gold platform and indeed a Sharia compliant gold bullion solution for the institutional market for a number of years. 

"We look forward to launching our comprehensive gold investment solution and offering it to qualifying Islamic financial institutions in 2017," Mr Flood added.

ETF Securities said the new standards were unlikely to change the price of gold and that it would take time for markets in new products to develop.

AAOIFI said it plans to conduct workshops for gold merchants in the Middle East to help clarify how to implement the standards in their daily operations.