The Art of Islamic Banking and Finance: Tools and Techniques for Community-Based Banking

(Tina Meador) #1

agricultural commodities, from their pre-1971 levels when the Bretton
Woods dollar-gold parity of $35 dollars per ounce of gold parity was
discontinued?


PRICE OF COAL


Coal has been used as a source of energy for years. Its production infra-
structure, transportation and distribution routes, markets, and uses have
matured and are well-developed around the world. That is why we see that
the relationship between the price of coal (as a basic energy commodity in
the matrix of needs of consumers) and the price of other commodities, such
as gold, rice or wheat, fluctuates in a narrower band than that of oil. Please
see Exhibits 5.9 and 5.10.
Based on Exhibit 5.10, the price of coal, which kept rising in dollar de-
nomination, went down in real value—in terms of gold—after 1971, and
kept fluctuating in a range of 0.06 to 0.1 ounces of gold for every ton of
bituminous coal.


EXHIBIT 5.7 Price of homes in rice.


Money and Its Creation 113

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