Ads by Muslim Ad Network

Announcement

Collapse
No announcement yet.

How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Abu-Yahya
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    Originally posted by Juvegirl View Post
    I did a little consulting with Sheikh Google, and this is what I was able to find. Make of it what you will.

    http://www.jewishmag.com/145mag/jewi...wish_coins.htm



    So a few centuries earlier, a house was worth 10 dinars. So at that time, 100 dinars would have had enough buying power to get you 10 houses.

    Doing simple and probably inaccurate math:

    Your average house price today is, what? between $250,000-$750,000 (depending on where you live.) Let's go with the lower number.
    10 houses would then be $2,500,000

    The Prophet saws lived in the 7th century, right? So the 600s? That means about 500 years between when this information about the value of a dinar was noted, and when the Prophet saws said the hadith quoted. The buying power of an equivalent amount of gold today is, based on the calculations done earlier, about $25,000 or 1/10 of what is needed for one house today.

    This is, as I said, not really reliable math, but I'm at work and just kind of roughing this in.

    I still think that most people would not be very satisfied with $2.5 million. A lot of people would, but a lot more would keep working and trying to get more money.
    Correct but you are missing one important point.

    The houses were not like our houses are today. Their 10 houses were not made of marble, nor did they have a lot of modern material nor electricity etc. Our houses today have so many luxuries in them. The car garage, the basement, the windows, the doors, the carpets, the paint, the size, the swimming pool, the electricity wires, the water system etc. and many many other things which they did not have that time.
    If you buy a small piece of land and build 10 small houses from mud (or whatever material they were using) then it would not cost you $2.500.000. Think about the hadith describing the house of the Prophet (saaw), sleeping in it was compared to sleeping under a palm tree in the desert.

    These days people live in palace-like buildings when compared to those in ancient times.

    Leave a comment:


  • ibnFalaax
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    Very interesting

    Leave a comment:


  • liban-ta-libaax
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    lol ok say at that time you bought something for less than 1 gold dirham using 1 gold dirham what is the change silver, bronze im confused:scratch:

    Leave a comment:


  • uncle umar
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    wow ide poop myself if i had that much money even on an annual basis.

    Leave a comment:


  • ahaneefah
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    Interesting articles you should read:

    Prepare for Riots in Euro Collapse, Foreign Office Warns:

    http://www.informationclearinghouse....ticle29832.htm

    Bankers Have Seized Europe / Goldman Sachs Has Taken Over:

    http://www.informationclearinghouse....ticle29823.htm

    Leave a comment:


  • Juvegirl
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    I did a little consulting with Sheikh Google, and this is what I was able to find. Make of it what you will.

    http://www.jewishmag.com/145mag/jewi...wish_coins.htm

    ...1st and 2nd cent. AD...
    DINAR
    ...
    (Jewish marriage contract) being worth twenty dinars and a house with the value of ten dinars...
    So a few centuries earlier, a house was worth 10 dinars. So at that time, 100 dinars would have had enough buying power to get you 10 houses.

    Doing simple and probably inaccurate math:

    Your average house price today is, what? between $250,000-$750,000 (depending on where you live.) Let's go with the lower number.
    10 houses would then be $2,500,000

    The Prophet saws lived in the 7th century, right? So the 600s? That means about 500 years between when this information about the value of a dinar was noted, and when the Prophet saws said the hadith quoted. The buying power of an equivalent amount of gold today is, based on the calculations done earlier, about $25,000 or 1/10 of what is needed for one house today.

    This is, as I said, not really reliable math, but I'm at work and just kind of roughing this in.

    I still think that most people would not be very satisfied with $2.5 million. A lot of people would, but a lot more would keep working and trying to get more money.

    Leave a comment:


  • Juvegirl
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    Originally posted by yassin' View Post
    Inflation is not the issue because we are talking about Gold.
    I'm sorry but I think it DOES count because Gold for them was currency. We don't use it directly as such anymore.

    Leave a comment:


  • yassin'
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    Originally posted by Yunus aua View Post
    That is true, its called inflation
    Inflation is not the issue because we are talking about Gold.

    The point being that 425 grams of Gold was a heck of a lot of money back then, and it still is now, except because of the modern ways of living we don't regard it as a lot any more.

    It is equivilant to 1 years salary now.

    So if someone gave you 1 years salary, you would say thankyouvery much but you would not be satisfied because it will not last forever.

    In that sense the hadith has come true already in our times.

    Leave a comment:


  • i.badat
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    Exactly, 2 different underpinnings for the same industry..

    It renders them incomparable..

    Leave a comment:


  • yassin'
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    Originally posted by i.badat View Post
    Sorry, I never explained myself..

    As you know, prices depend on market forces, and the ability of the consumer to pay..

    If a consumer, in general (not only Muslim) has access to loans, this person has an option to pay more money for a house, a figure higher than his income..I have not heard money being lent for purposes of buying houses at Rasulullah Sallallahu alaihi wasallam's time, they used what they had, not what they could borrow..

    Therefore, the property market in these two eras have 2 totally different underpinnings, and therefore cannot be compared efficiently..
    Loans and Buying houses was part of the Sahabas lives as well. They just did not put as much emphasis on it as we do, the emphasis back then was on Jihad and ghanima.

    Leave a comment:


  • Yunus aua
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    Originally posted by Juvegirl View Post
    Yeah, I make more than that a year and we couldn't live on it.

    When we discuss money then vs. money now though I can't help but wonder if they intend what a person could buy with that money then v. what they can buy with it now.

    So if 100 dinars during the time of the Prophet saws bought you a huge estate with servants and gardens and camels etc etc. then the equivalent today wouldn't be $23,400-$25,600 it would be much, much higher. If you get me.
    That is true, its called inflation

    Leave a comment:


  • i.badat
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    Sorry, I never explained myself..

    As you know, prices depend on market forces, and the ability of the consumer to pay..

    If a consumer, in general (not only Muslim) has access to loans, this person has an option to pay more money for a house, a figure higher than his income..I have not heard money being lent for purposes of buying houses at Rasulullah Sallallahu alaihi wasallam's time, they used what they had, not what they could borrow..

    Therefore, the property market in these two eras have 2 totally different underpinnings, and therefore cannot be compared efficiently..

    Leave a comment:


  • yassin'
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    Originally posted by i.badat View Post
    ^The availability of loans has distorted such calculations, house prices cannot be compared in a way so straightforward..
    Comparing prices of bread (we don't need to take a loan out for bread...yet! ) would be more helpful..
    Availability of loans? what loans?

    There is no such thing as interest free loans in UK.

    Leave a comment:


  • i.badat
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    ^The availability of loans has distorted such calculations, house prices cannot be compared in a way so straightforward..
    Comparing prices of bread (we don't need to take a loan out for bread...yet! ) would be more helpful..

    Leave a comment:


  • Juvegirl
    replied
    Re: How much was 1 Gold Dinar worth in the time of the Sahaba (ra) ?

    Yeah, I make more than that a year and we couldn't live on it.

    When we discuss money then vs. money now though I can't help but wonder if they intend what a person could buy with that money then v. what they can buy with it now.

    So if 100 dinars during the time of the Prophet saws bought you a huge estate with servants and gardens and camels etc etc. then the equivalent today wouldn't be $23,400-$25,600 it would be much, much higher. If you get me.

    Leave a comment:

Working...
X