Is Dirham better performed than Dinar in hedging fluctuated prices? / Dziauddin Sharif , Norlina Hazamuri and Mohd Asyadi Redzuan

Previous researches had shown that the coinage system can make the whole economic system sustainable
rather than fiat money system. Of course the reason for that is the Gold Dinar and Silver Dirham are
capable of reducing the fluctuation in goods price, thus it can reduce the inflation and deflation. Despite
the fact that the both gold dinar and silver dirham are in a same kind, but they are in a different weight
age, hence each of them would bring different result in case of stabilizing or hedging the price
fluctuation. The question may arise here is which one of these metal can be a better tool to stabilize or
hedge the price fluctuation. As a response to this matter, an empirical study would be carried out to find
the answer. Therefore, this study is purposely compared the performance of gold dinar and silver dirham
in hedging the price fluctuation, and subsequently to identify which one of these commodity monies could
be a better hedging tool.