Is There Zakat on Platinum Jewelry?

No, Zakat is not required on platinum jewelry if it is worn for personal adornment and is not excessive or wasteful.

The following are three conditions under which Zakat applies to platinum jewelry and the differences in Zakat obligations for other precious metals.

1. When Zakat is Not Required

• Adornment Purpose:

Platinum, as a precious metal distinct from gold and silver, does not require Zakat if it is used for personal adornment in moderation.

• Moderation:

The jewelry should not be excessive in quantity or used wastefully. It must be worn for modest adornment, as prescribed by Islamic guidelines.

2. When Zakat is Required

• The Intention of Wealth Preservation:

If platinum jewelry is acquired not for adornment but as a means of saving wealth or investment, then Zakat must be paid. This is similar to the obligation of Zakat on savings or precious metals held for investment purposes.

• Excessive Quantity:

If the amount of platinum jewelry becomes so large that it is considered wasteful or no longer fits the definition of "adornment," Zakat would then be due. The threshold for excessiveness is subjective, but it is important that it does not appear to be accumulated in an extravagant or unrestrained manner.

3. Zakat for Platinum in Trade

• Business Transactions:

If someone deals in platinum jewelry, whether buying or selling it, Zakat must be paid on the market value of the platinum. This applies after a full year has passed, provided the total value reaches the Zakat nisab.

• Applicable Yearly:

This applies to the trade value, and the Zakat becomes due annually on the assets involved in the business transaction.

Thus, platinum jewelry does not require Zakat unless it is hoarded for wealth preservation or considered excessive in quantity. Similarly, individuals dealing in platinum for business purposes must ensure they calculate Zakat and pay it as required.

And Allah knows best!