Do I need to pay Zakat on my gold and silver?
Gold and silver in whichever form they are in (jewellery, coins, ingots etc.) are all subject to Zakat.
If you own personal items made from a mixture of metals, then the gold/silver content is liable to Zakat in the mixed metal.
How much gold or silver do you have to own before Zakat is payable?
This question can be answered in the context of your net assets. You then need to establish whether your net assets equal or exceed the Nisab threshold. If you equal or exceed the Nisab threshold then Zakat is due on all your wealth at 2.5%.
Zakat is due on two types of precious metals – gold and silver.
Gold and silver are used as the basis for calculating your Nisab regardless of currency. This is the threshold of wealth you need to own before Zakat is due.
How do I calculate the value of my gold or silver?
Your local gold jeweller can tell you the current value of your gold assets.
They can do this in two ways:
- They can give you the current value they would buy your gold at if you were to sell it
- Or they can give you the weight of the gold and you can calculate the value using today’s live gold price in grams – this is known as the universal measurement. This is perhaps most suitable to ensure 100% accuracy.
Is there Zakat on white gold jewellery?
White gold is an alloy of gold and at least one white metal, usually silver, nickel, manganese, or palladium. This is added to add durability and strength, as pure gold is a very soft metal. White gold is treated like normal gold and is subject to Zakāt, as it contains pure gold.
As some scholars are of the opinion that mixed metals are only liable to Zakat if half or more of the metal is gold or silver, you only have to pay Zakat on the gold, but not the silver part of white gold.
The amount of Zakāt payable would be calculated by multiplying the full weight of the jewellery by the price per gram for gold of that carat.
Example calculations
For example, if one has an 18 carat white gold bangle weighing 50 grams, then 50 grams would be multiplied by the price of a gram of 18 carat gold. This is because 18 carat gold is 18/24 pure gold, so out of the total weight of 50 grams, 37.5 is pure gold.
Likewise, if one has a 9 carat white gold bangle weighing 50 grams, then 50 grams will be multiplied by the price of a gram of 9 carat gold. Similarly, this is because 9 carat gold is 9/24 pure gold, so it contains 18.75 grams of pure gold. Some scholars are of the opinion that there is no zakat on the 9 carat (pure) gold.
Tolas, Boris, and Voris
It is worth noting that in the South Asian subcontinent (i.e. India, Pakistan, Bangladesh, and Nepal), grams may not be used to measure silver and gold. Instead, one of three possible units of measurement may be used; these are either: Tolas, Boris or Voris.
One Tola or Bori or Vori is equivalent to 11.66 grams.
We know that the Nisab threshold for gold is 87.48 grams, so this is the equivalent to 7.5 (87.48/11.66) Tolas, Voris, or Bhoris.
What gold or silver items are Zakatable?
Gold or Silver kept as an investment
Gold and silver, in whichever form kept, as an investment, are always Zakatable.
Personal use ornaments
Items containing gold or silver purchased for personal use as ornaments are Zakatable. This includes ornaments used for house decoration and utensils (such as silver spoons etc).
Gold or Silver designated for personal use
There are differences of opinion regarding whether or not gold and silver jewellery that is kept for personal use should be exempt from Zakat. According to the Hanafi school, Zakat is due on this gold and silver. According to the other schools of Islamic law, Zakat is not due on this even if it was used once in a given year.
Other precious metals, stones and mixed assets
Other precious metals like platinum and precious stones such as diamonds, pearls and rubies are not subject to Zakat.
For further guidance on jewellery that are zakatable and non-zakatable you can watch the following videos:
Common Questions
Q: I have my wedding ring which is made out of gold with a diamond stone. Do I have to pay Zakat on the full value of the ring?
A: The majority of the scholars of the four schools of jurisprudence are in agreement that there is no Zakat due on any sort of precious stones such as diamonds. The only time you would pay Zakat on diamonds is if they have been acquired for trading purposes. In your case, you will pay Zakat only on the gold value of the ring according to the Hanafi school of jurisprudence. According to the other schools, if you have been wearing your gold ring throughout the year (or even once a year), there is no zakat on it.
Q: Is Zakat due on gold according to the Shafi school of Islamic Law?
A: In principle, Zakat must be paid on gold that one has owned for a full year, not just once, but for every year that one owns it. However, if the owner of the gold is a female whose purpose in acquiring the gold is to wear it, even if it be only once a year, and only to weddings, it will not be incumbent to pay Zakat on it.
Q: Is Zakat due on gold-plated jewellery?
A: Gold-plated jewellery is not gold jewellery, but it is jewellery made of a base metal that has a very thin layer of gold applied on top of it.
Q: Am I responsible for paying Zakat on the gold jewellery of my wife?
A: Zakat is a personal obligation. Every person is primarily required to pay their own Zakat. Hence, your wife will be primarily responsible to pay Zakat on her Zakatable assets such as gold and silver. However, you may pay Zakat on her behalf.
Q: What is the evidence for the obligation of Zakat on gold and silver?
A: The following verse directly mentions hoarded gold and silver which should have been given in the way of God. The exegetes of the Quran mention that this verse refers to Zakat.
“…those who hoard up gold and silver and do not spend it in the way of God, give them the glad tidings of a painful punishment” (Quran 9:34)
In a prophetic narration, a woman from among the people of Yemen came to the Messenger of Allah with her daughter. The daughter was wearing two big bangles of gold. The Prophet remarked: “Do you pay Zakat on these? She said: “No.” He said: “Would it please you if Allah were to put two bangles of fire on you on the Day of Resurrection?” So, she took them off and gave them to the Messenger of Allah and said: “They are for Allah and His Messenger.” (Sunan an-Nasa’i)
Q: I haven’t paid Zakat on my gold for a number of years. Which rate do I consider if I am paying now? Today’s rate or the rate of gold in those years?
When paying for missed Zakat on gold, one will take into account the value of gold in the previous years. Hence, work out how much your gold was worth in the previous years on your Zakat day.
Regarding historical Nisab you can refer to The Purpose of the Zakat payment page. You may also visit the following link to help calculate the value of your gold.
Q: Do men have to pay Zakat on their gold?
A: Even though men are prohibited from wearing gold jewellery, if a man possesses a gold watch for example, then Zakat should still be paid on that watch. There is no difference of opinions between any school of jurisprudence on this issue.
Q: Is a 9-carat ring of gold Zakatable?
A: The gold content in such a ring is Zakatable. Zakat will only be due on the gold portion of such a ring. The price per gram of that carat of gold will be used to calculate the total amount of Zakat due.
Q: I have gold and silver but none of them reaches their respective nisab. Does it mean I have to mix the value of both and compare the total against the silver nisab to determine whether I have to pay Zakat or not?
A: According to the Hanafi school and one opinion of the Hanbali school of jurisprudence, if one has gold and silver that do not reach their specific nisab, then they should mix the value (i.e. price) of both and compare it to the silver nisab to determine if they have to pay Zakat or not.
Imam Malik (Ra) is also of the same opinion, however, the method of adding the value of both together is not only different but can be complex.
According to the Shafii’ school, there is simply no need to mix any of the gold and silver together. If none of them reaches their own specific nisab then the person will not be required to pay Zakat.
This is one of the opinions of Imam Ahmad in one narration.
Q: Is Zakat due on gold bullion and ingot?
A: Yes, Zakat is binding on bullion and ingots. Zakat is due on any gold article in one’s ownership.
Q: Is Zakat due on gold given as Mahr (dower)?
A: Zakat is due on all of one’s gold and silver property regardless of how one acquired such items. Therefore, Zakat is due on the gold given as Mahr upon getting married.
Q: I’m unsure how much my gold and silver is worth?
A: It is advisable in the event you don’t know how much (in value) of gold and silver you have in possession, to take them to your local jewellery expert for a valuation on your Zakat anniversary date.
Q: Is Zakat due on gold tooth caps?
A: If the gold cap is attached in a permanent manner that cannot be removed without surgery, there is no Zakat on the gold cap. However, if it is easily detachable, then there will be Zakat on the gold cap annually.
Q: When weighing gold and silver, is the total weight of both combined taken into account or are they both separate due to the nature of the different values?
A: The value of gold and silver will be determined separately for Zakat purposes.
Q: What if I cannot afford to pay Zakat on the gold that I have?
A: Zakat can be paid in cash and kind. Therefore, if one does not have the cash to pay Zakat on gold, it is permissible to pay Zakat in gold. You may also liquidate your gold to pay your zakat.
Q: Is Zakat due on items composed of mixed metals with gold and silver?
A: According to the more accurate view among contemporary Hanafi jurists, if a person has personal items made from a mixture of metals, then the gold/silver is liable to Zakat if the gold/silver content can be distinguished and ascertained.
Approved by Mufti Amjad 13th August 2023
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