Gold Zakat is considered one of the frequently asked questions we receive, as it is one of the fundamental Islamic cornerstones mentioned in the Holy Qur’an and Prophet’s hadiths. Gold Zakat carries a very religious value due to its influence and consideration as an essential part of Islamic obligations.
In this article, we’ll discover Gold Zakat’s concept along with its terms and conditions according to Nisab.
What is Gold Zakat?
Gold Zakat is part of the general religious duty imposed on those who own a specific amount of gold owned or inherited or traded for an entire Hijri lunar year. The value of Gold Zakat is determined based on certain conditions and zakat is required whether it is bars, coins, or unused jewelry.
Important: please note that Zakat is calculated based on today’s gold price.
What are the conditions for Gold Zakat?
- Gold Zakat is an obligation when you reach the Nisab (i.e. the minimum quantity):
- Minimum quantity for 24K Gold is 85 gm.
- Minimum quantity for 21K Gold is 97 gm.
- The Nisab for other Karats aside from 24K is calculated by multiplying the number of grams by the karat and dividing it by 24.
- Zakat must be paid on 2.5% or a quarter of a tenth of the value of the gold and it is calculated for every 85 grams.
- Gold Zakat is calculated based on its daily selling price without considering the craftsmanship fees.
- Frequently worn jewelry are excluded from gold zakat according to some jurists.
Calculate your Gold Zakat Now
Important: please note that Zakat is calculated based on today’s gold price.