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Written by Abdun Nur   
Money is the root of our present global enslavement, due to the mental concept of money as the thing that generates wealth, in contrast to the Islamic view of money as simply a way to account for your labour.

A community of local people come together and remove their fiat money and cash in their usury investments, placing their savings within the repository.

Say 1000 people place their savings in the repository, on average they save £2000 each, so a total of £2,000,000.

The repository buys pure silver with the funds, which at the moment is around £16 per ounce, so a total of 125,000 ounces, or 3551kg of pure silver.

The investor has the option of having their silver minting into coins, a service which would fund the repository, say the cost of minting a coin is £1.50, each investor has 125oz of silver so it would cost around 10 oz of silver to have them minted, leaving each investor with 115 one ounce coins, and the repository worker with 10 oz coins. The cost of setting up the repository and equipment to mint coins would be taken from the investors savings, say it cost £30,000, the administrator running the repository would repay the loan through earnings giving a quarter of his labour back to the investors until the loan is repaid.

The ideal companion business is a silver mine, allowing the miners to work to supply the community with coinage.

If silver is available locally within the geology, the repository investors could find a small group of local skilled and knowledgeable men, say 5, with experience in silver mining and silver-smithing, using the funds to invest in a silver mine, say £500,000, and invest in equipment say £300,000, they could establish a mining business, the scale of the undertaking would depend of the size of the repository, but could grew over time, so allowing new miners to invest and work within the mine as equal collaborators.

These five men would mine silver and mint coins, say they charge 1¼ oz of pure silver per hour, they would take 1 oz per hour as a wage and use ¼ oz per hour of their earnings to repay the loan from the repository. If they mine more silver than the wages they earn it could be used to repay the loan more quickly, invested in improving the mine, donated to the community, or as a bonus to the workers of the mine it would be up to them. Of course silver mines produce other metals and aid towards many other industries, I'm using a simple model example to illustrate the concept.

Another aspect of the Islamic business model is in knowledge and experience giving one man greater value to a business than another, in a simple business model, like a garage the work is equal in skill and experience, but in a mining model there would be a wide range of abilities and skills, this should be reflected within a scale of hourly payment, in line with the abilities, knowledge, skills, and experience of the individual. Just as was done in the merchant ships of old, were a sliding scale of rates was established to account for these aspects, this would be established within the text of the allodial business contract signed and witnessed at the founding of the enterprise.

When the repository takes in any fiat money, in exchange for pure silver, if they do not have a mine, they would buy silver from the world market, so ridding themselves of the worthless fiat paper money.

If they had a silver mine, goods required within the local community, that are not locally available, could be paid for with fiat paper in exchange, ridding the community of it slowly.

Islamic loan system

Within a repository only 5% of the coins stored on average ever leave the repository, 95% remain untouched, this allows loans within the community without interest.

As pure silver is loaned, pure silver must replace the loan, so if fiat money was used to repay the loan, it would repay on its value of silver on the day of payment.

As it is a physical system, one not based on a fiction like the modern banking model, the loans must be repaid, otherwise someone would loose the silver they had stored.

This means loans must be secured.

  1. You could secure a loan on assets you own.

  2. A relative or friend with enough assets could guarantee the loan.

  3. A surety group you contracted with could guarantee your loan.

  4. The community at large could guarantee the loan.

The need for securing repayment is important, the borrower could die or lose the ability to earn money, they could refuse to repay or disappear from the community.

If the demand for loans out stripped the available silver within the store, a register of labour could be introduced, based upon the repayment of silver.

So say you want an extension building costing £50,000 being around 3100 oz of silver at present, you find a local builder who is a member of the repository. He works on your extension, and is paid credit notes that he can put into his account representing silver coins, while your account goes into the negative. As you work over time the balance is restored, you replace the coins the builder spends from his account.

The credit notes issued to you and given to the builder can be used by him to pay others within the community to circulate as a temporary method replace silver coins, and the notes destroyed when represented to the repository.


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