The governments of Kelantan and Perak have not yet received any petition from the government of Malaysia against the usage of these coins as an investment option, analysts said
KUALA LUMPUR(BullionStreet): Gold coins issued by Malaysia's Kelantan state is yet to get it's original aim of currency status but now became a top bullion investment in the country.
According to Kelantan government it continued to receive overwhelming demand for the gold dinar from the public with most of them purchasing the coins as investments.
Another Malaysian state Perak has also issued it's own gold dinars and silver dirhams.
The governments of Kelantan and Perak have not yet received any petition from the government of Malaysia against the usage of these coins as an investment option, analysts said.
They added that given the present laws of Malaysia, the gold dinar as money is unlikely to succeed as the legal tender law would prevent it from circulating as money.
However, they said gold dinar projects are expected to boost the economy of Perak and Kelantan in the long-run by promoting employment, creating new business ventures including investment in gold mining, designing, minting, assaying, hallmarking, gold dinar agency etc.
Spill-over effects are expected to provide additional business to existing business units.
Perak and Kelantan gold dinars are also of 4.25 grams but with the purities of 99.9 and 91.7 respectively.
The success of the coin as an investment option prompted other states controlled by the Islamists such as Selangor, Kedah and Penang to mint similar coins.