Zakat on Gold & Silver
Understand how to calculate Zakat on your gold and silver holdings, including jewelry, coins, and bullion.
"And those who hoard gold and silver and spend it not in the way of Allah - give them tidings of a painful punishment."
- Quran 9:34
Understanding Zakat on Gold and Silver
Gold and silver hold a special place in Islamic jurisprudence regarding Zakat. These precious metals were historically used as currency and continue to be important stores of wealth. The obligation to pay Zakat on gold and silver is clearly established in the Quran and Sunnah, with specific nisab (minimum threshold) values set for each.
Whether you own gold jewelry, silver coins, gold bars, or investment-grade precious metals, understanding how Zakat applies to these assets is essential for every Muslim. The rate of Zakat on gold and silver is 2.5% of their market value, provided they meet the nisab threshold and have been in your possession for one complete lunar year.
Nisab Thresholds for Gold and Silver
Zakat becomes obligatory when your holdings meet or exceed these minimum thresholds.
Gold Nisab
Minimum threshold
87.48g
approximately 3 ounces of pure gold
Approximate USD Value*
~$7,500+
*Based on current market prices
Silver Nisab
Minimum threshold
612.36g
approximately 21 ounces of pure silver
Approximate USD Value*
~$550
*Based on current market prices
Important Note
Most scholars recommend using the silver nisab as the threshold for calculating Zakat on cash and other assets, as it allows more people to benefit from Zakat distribution. However, for gold and silver specifically, use their respective nisab values.
What Gold and Silver is Zakatable?
Gold Bars & Coins
Investment gold in any form, including bullion bars, coins, and rounds, is subject to Zakat at full market value.
ZakatableSilver Bars & Coins
All investment silver, including bars, coins, and silverware kept as an investment, is subject to Zakat.
ZakatableGold Jewelry (Hanafi)
According to the Hanafi school, all gold jewelry is subject to Zakat, regardless of whether it is worn regularly or stored.
Zakatable (Hanafi)Gold Jewelry (Other Schools)
Shafi'i, Maliki, and Hanbali schools generally exempt jewelry worn regularly for permissible purposes.
Scholarly DifferenceGold for Men
Gold jewelry worn by men is impermissible in Islam. Zakat is due on it, and the owner should seek to dispose of it appropriately.
Impermissible to WearGold/Silver ETFs & Stocks
Investments in gold and silver ETFs or mining stocks are subject to Zakat based on their market value.
ZakatableHow to Calculate Zakat on Gold and Silver
Weigh Your Gold and Silver
Determine the total weight of your gold and silver in grams. For jewelry, you may need to have it weighed by a professional jeweler. Remember to account for purity (24K gold is 100% pure, 18K is 75%, 14K is 58.3%, etc.).
Check Against Nisab
Compare your holdings to the nisab threshold. Gold nisab is 87.48 grams, silver nisab is 612.36 grams. If your holdings meet or exceed this threshold for a full lunar year, Zakat is due.
Determine Market Value
Find the current market price of gold and silver. You can check reputable sources like Kitco, LBMA, or your local jeweler. Multiply the weight by the current price per gram.
Calculate 2.5%
Multiply the total market value by 2.5% (or divide by 40) to determine your Zakat obligation.
Example Calculation
Gold owned: 100 grams of 18K gold
Pure gold content: 100g x 0.75 = 75g pure gold
Current gold price: $65 per gram
Total value: 75g x $65 = $4,875
Zakat due (2.5%): $4,875 x 0.025 = $121.88
Scholarly Opinions on Gold Jewelry
There is a difference of opinion among Islamic scholars regarding Zakat on gold jewelry worn by women.
Hanafi School
The Hanafi school holds that Zakat is obligatory on all gold and silver, including jewelry that is worn regularly. This is based on the general texts regarding Zakat on gold and silver without distinction.
"The woman who wears gold jewelry and does not pay Zakat on it will be made to wear it as bracelets of fire on the Day of Judgment."
- Hadith (Abu Dawud)
Other Schools
The Shafi'i, Maliki, and Hanbali schools generally hold that gold jewelry worn regularly by women for permissible purposes is not subject to Zakat, as it is considered personal use, similar to clothing.
"Personal items of use are exempt from Zakat, and jewelry worn by women falls under this category."
- Position of majority scholars
Our Recommendation
We recommend following the Hanafi opinion or the opinion of your local scholar. When in doubt, it is safer to pay Zakat on all gold and silver to ensure you fulfill your obligation completely. This approach ensures you err on the side of caution and benefits more people in need.
Ready to Pay Your Zakat on Gold and Silver?
Use our Zakat Calculator to determine your exact obligation, then pay securely through our trusted platform.
