The gold market might soon find 1.6 billion new buyers when the Islamic world makes a clarification to its Sharia law.

Currently, there is some controversy over whether or not Sharia law, which guides both the personal and financial lives of Muslims, permits the ownership of or investment in gold bullion as a tradable commodity. Like in every other religion, different interpretations of religious texts lead people to different conclusions.

So, to clarify the issue once and for all, the World Gold Council and the Accounting and Auditing Organization for Islamic Financial Institutions (which establishes standards for Islamic finance) are drafting new standards for investing in gold to comply with Sharia law.

These standards are expected to be proposed during the fourth quarter. And if these proposals for the changes in Sharia gold standards are accepted, a flood of new investors could help send prices soaring.