Performing sacrifice is something that is highly recommended for every wealthy Muslim. Allah has determined camels, oxen, goats and sheep as sacrificial animals. A goat or a sheep slaughtered on Eid al-Adha feast is sufficient for a family. A Camel or a cow can be sacrificed for the seven people in associate. Livestock prices increasing every year, influenced by market supply and demand, import policies, national food security enhancement programs, as well as inflation. According to 2013, a unit price of a live cow was Rp47 000 per kg, while in 2009 price only Rp30 000 per kg. In today’s rupiah, the price in 2009 is equal to Rp36 000. Purchase power of Rupiah to the livestock prices is decreasing.
Development of alternatives
The livestock for sacrificial animals is priced in Rupiah if purchased in Indonesia. But in order to have sufficient Rupiah, we can save some money in foreign currency such as US Dollar, or in Gold Dinar (GD). Gold Dinar is sized at 4,25 grams gold with a purity of 91,7%.
Development of prospective outcomes
From statistical data between 1980 and 2013 we can plot the price of cow per kg both in rupiah and USD. In addition, we also plot the price of cow per kg in GD. Given the fact that inflation affects the purchasing power of money, and then the price is formulated into the purchasing power in 2013.
Selection of the acceptable criteria.
Either saving in USD or GD which is gives the most purchasing power of cow saving for Eid al-Adha.
Analysis and comparison of alternatives.
Picture 1 shows that although the Rupiah purchasing power has been adjusted to 2013 value, the unit price of live cow is tend to increase. The same trending for US Dollar price is shown in Picture 2. I have to prepare that next year unit price is higher than today. With the inflation rate of 6.5%, using FV formulae, at least Rp50 056 will be the 2014 price per kg of live cow. With the US inflation rate at 1,5%, using FV formulae, at least $5,54 will be the 2014 unit price of live cow.
Picture 1. Live cow unit Price in Rupiah and GD
Picture 2. Live cow unit Price in USD and GD
Exchange rate for USD and GD in Rupiah is shown in Picture 3. Picture 4, the London Fix curve for gold, confirming the exchange rate of GD in Rupiah shown in Picture 3.
Picture 3. Exchange rate for USD and GD in Rupiah
Picture 4. London Fix Gold Price, www.kitco.com
From Picture 1 and Picture 2, we can see that GD price for livestock had took the stable position along the time with the average of 0,06 GD per kg of live cow. The trend in the late 5 years of 0,04 GD per kg can assure that 2014 price of live cow will be about at the same value.
Selection of the preferred alternative
Saving for cow for the next Eid al-Adha in GD is preferred as it gives the most purchasing power. The second preference is saving in US Dollar or in other stable currency such as Japan Yen or Great Britain Pound sterling, or China Yuan.
Performance monitoring and postevaluation of results
It is the fact that cannot be denied, Rupiah has lost its purchasing power up to 200% in just 30 years. Although the U.S. dollar in the same period is also losing at the same value, saving in USD for short term could be better than saving in Rupiah. However, the condition of world’s politics and the market supply and demand for gold, can also affect its sale price in various currencies.
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