writer
Atta-ur-Rehman

Which Kinds of Gold and Silver Are Subject to Zakat?

8 min read

zakat-banner

Gold and silver are generally subject to Zakat in all their forms.

However, specific guidelines govern different types of gold and silver items, especially when they take on forbidden forms in Islam.

Here is an explanation:

Gold and Silver in All Forms

  • Subject to Zakat: Gold and silver in any form—including coins, bars, and jewelry—are subject to Zakat.
  • Exceptions for Forbidden Forms: However, certain gold or silver items in forbidden forms, like statuaries or dinnerware, are also subject to Zakat.

Forbidden Forms of Gold and Silver

Islam prohibits the use and display of certain forms of gold and silver:

  • Examples of Forbidden Forms:
    • Statues or iconic art made of gold or silver.
    • Dinnerware made of gold or silver.
  • Zakat Calculation:

For these forbidden items, their value is combined with other gold or silver possessions. Zakat is then calculated based on the total value of all items collectively.

Jewelry and Zakat

  • Women’s Jewelry: Women’s jewelry made of gold or silver is generally subject to Zakat. This applies if it exceeds the Zakat Nisab amount and has been in the possession of the owner for a full lunar year.
  • Men’s Jewelry: Men’s jewelry, such as plain silver rings or decorative sword hilts, is not subject to Zakat as it serves functional purposes rather than ornamental.

Zakat on Prohibited Decorative Gold and Silver

  • Ostentation is Forbidden: Islam forbids the display of gold or silver items in a way that is ostentatious or extravagant. This prohibition extends to certain decorative items, such as figurines or artwork made from precious metals.
  • Zakat on Market Value: For these items, Zakat is not calculated based solely on the weight of the gold or silver but on the actual market value of the piece. Zakat is due on the full market value, ensuring that the correct amount is paid.

This comprehensive approach ensures that Zakat is paid fairly, even on prohibited items, and according to the actual value of the gold and silver involved.

And Allah knows best!

writer

WRITTEN BY

Atta-ur-Rehman

Atta-ur-Rehman, a specialist in Fiqh from Fazal-Jamiat-ul-Uloom-ul-Shariah, Jama'at ul-Umar Karachi, is an expert in Islamic jurisprudence. His expertise spans various aspects of Shariah, including Zakat, financial rulings, family laws, and ethical guidance in everyday life. With a deep understanding of Islamic principles, he provides a reliable insights into matters of faith, worship, and personal obligations.