How to calculate Zakat on Gold
Two Categories of Zakat on Gold
Gold Bars and Gold Jewellery Not Intended for Usage
Gold in the form of gold bars kept / invested in the bank and gold jewellery that is kept without the intention of usage is obligated for Zakat when the weight of the gold has reached the haul and nisab of 86 grams. Zakat is then based on 2.5% of the total weight of gold from the gold bars / jewellery.
Gold Jewellery Intended for Usage
Gold jewellery intended for usage is only obligated for Zakat if the weight of a piece of the gold jewellery has reached the haul and uruf of 860 grams. Zakat is then based on 2.5% of the total weight of gold from the piece of gold jewellery. Note: Uruf is the customary practice on level of jewellery owned by a community. The uruf of 860 grams is based on the opinion of Imam An-Nawawi in Al-Majmuk. (Muis Fatwa, 9 June 2011)
How to calculate Zakat on Gold
Example for jewellery Not Intended for Usage
Nisab : 86 grams (does not change)
Today's Date : 1 Apr 2013
Nisab rate on 1 Apr 2013 : $5,677 (market value of 86 grams of gold)
Current rate of gold : $5,677 / 86 = $66 per gram
e.g. Weight of my gold jewellery not intended for usage: 90 grams (above nisab)
Zakat on Gold (not intended for usage)
= weight of my jewellery x current rate of gold x 2.5%
= 90 grams x $66 per gram x 2.5%
= $148.50
Example for Jewellery Intended for Usage
Uruf 860 grams (does not change)
Today's Date: 1 Apr 2013
Nisab rate on 1 Apr 2013: $5,677 (market value of 86 grams of gold)
Current rate of gold: $5,677 / 86 = $66 per gram
e.g. Weight of my gold jewellery intended for usage: 950 grams (above uruf)
Zakat on Gold (intended for usage)
= weight of my jewellery x current rate of gold x 2.5%
= 950 grams x $66 per gram x 2.5%
= $1,567.50
Gold Bars and Gold Jewellery Not Intended for Usage
Gold in the form of gold bars kept / invested in the bank and gold jewellery that is kept without the intention of usage is obligated for Zakat when the weight of the gold has reached the haul and nisab of 86 grams. Zakat is then based on 2.5% of the total weight of gold from the gold bars / jewellery.
Gold Jewellery Intended for Usage
Gold jewellery intended for usage is only obligated for Zakat if the weight of a piece of the gold jewellery has reached the haul and uruf of 860 grams. Zakat is then based on 2.5% of the total weight of gold from the piece of gold jewellery. Note: Uruf is the customary practice on level of jewellery owned by a community. The uruf of 860 grams is based on the opinion of Imam An-Nawawi in Al-Majmuk. (Muis Fatwa, 9 June 2011)
How to calculate Zakat on Gold
Example for jewellery Not Intended for Usage
Nisab : 86 grams (does not change)
Today's Date : 1 Apr 2013
Nisab rate on 1 Apr 2013 : $5,677 (market value of 86 grams of gold)
Current rate of gold : $5,677 / 86 = $66 per gram
e.g. Weight of my gold jewellery not intended for usage: 90 grams (above nisab)
Zakat on Gold (not intended for usage)
= weight of my jewellery x current rate of gold x 2.5%
= 90 grams x $66 per gram x 2.5%
= $148.50
Example for Jewellery Intended for Usage
Uruf 860 grams (does not change)
Today's Date: 1 Apr 2013
Nisab rate on 1 Apr 2013: $5,677 (market value of 86 grams of gold)
Current rate of gold: $5,677 / 86 = $66 per gram
e.g. Weight of my gold jewellery intended for usage: 950 grams (above uruf)
Zakat on Gold (intended for usage)
= weight of my jewellery x current rate of gold x 2.5%
= 950 grams x $66 per gram x 2.5%
= $1,567.50
