12.1. Gold and Silver
AddThis Social Bookmark Button


"Those who hoard up treasures of gold and silver and spend them not in the way of Allah; give them the news of a painful punishment, on the Day when that (wealth) will be heated in the Fire of Hell and with it will be branded their forehead, their sides, and their backs, (and it will be said to them:) 'This is the treasure which you hoarded for yourselves. Now taste of what you used to hoard.'" [Al-Quran 9:34-35]

Further, Asma bint Yazid reported: "My aunt and I, while wearing gold bracelets, went to the Prophet (peace be upon him). He asked: 'Did you pay their Zakat?' She related that they had not. The Prophet (peace be upon him) said: 'Do you not fear that Allah will make you wear a bracelet of fire? Pay its Zakat." [Al-Quran -Narrated by Ahmad (6:461) with a good chain, as Haythami declared in Majma` al-zawa'id (3:67)]

Furthermore, Aisha narrated: "The Messenger of Allah came to me and saw me wearing silver rings, whereupon, he asked: 'What is this, Aisha?' I replied: 'I made them to adorn myself for you, O Messenger of Allah.' He said: 'Did you pay their Zakat?' I said: 'No, or what Allah wishes.' Then he said: 'Their punishment in Hell is enough for you.'" (Narrated by Abu Dawud in his Sunan with a strong chain, Daraqutni in his Sunan, and Baihaqi in his Sunan (4:140))

Gold and silver, whether in the form of jewelry otherwise, will always be subject to Zakat provided their respective weights exceed the nisab amount. According to scholars, nisab for gold is 20 mithqal (~ 87.49g), and the nisab for silver is 200 dirhams (~613.35g).


Nisab Grams Ounce Troy Oz
Gold 20 mithqal 87.49 3.086 2.8125
Silver 200 dirhams 613.350 21.635 19.6875

Table 1: Nisab determination


The prices of gold and silver vary everyday in international markets. On June 30, 2007, the price of gold* is approximately $20.82/g and for silver* is $0.39545/g, hence the nisab for gold is approximately $1,821.54 ($20.82 x 87.49g) and the nisab for silver is approximately $242.5493 ($0.39545 x 613.35g).

*Gold and silver prices have been (and can be) obtained from http://www.goldprice.org/

The value of gold content in jewelry depends on the gold's purity, as well as its weight. Gold purity is measure on a scale of 1 to 24 karats (kts).


Karat % Gold Description
24 100% pure gold, very soft and very easily bent, too soft for jewelry, therefore the gold is alloyed with silver, copper, nickel or zinc.
22 91.7% still too soft for most jewelry
18 75.0% for fine jewelry, the best for beauty and durability
14 58.3% OK for jewelry but the gold is of a duller color
12 50.0% not OK for most western jewelry
10 41.7% legal limit for 'real' gold in USA

Table 2: Lookup table for Gold Purity

Zakat on the gold will be according to the gold content in the jewelry (i.e. karats) and its value in the international market. Hence when calculating the value of your gold, you must consult a jeweler for the correct value (depending on the content and weight). Similarly, any stones in the gold are not Zakat-able when for personal use.

To calculate the value of your gold, based on the karat, this formula can be used:

Note: In this regard, jurists have ruled that that whatever contains more than 50% gold will be treated all like gold and Zakat will be paid on its value. Therefore, anything more than 12 karats will be Zakat-able to its value.


12.0 What kinds of things require
paying Zakat on them?
12.2 Cash



Sitara-e-Isaar Awarded to Hidaya Foundation

The partner organization of Hidaya Trust, Hidaya Foundation was awarded Sitara-i-Eisaar (Star of Sacrifice) by the Government of Pakistan, in recognition of the results-oriented relief efforts of both the organizations during the 2005 earthquake in Pakistan. It was awarded during a special ceremony held at the Embassy of Pakistan in Washington, DC.

In Keeping with our commitment to the communities in which Hidaya Trust operates, it hires its work force as an equal opportunity employer.  It means that employment decisions are based on merit and business needs and not on race, color, status in the society, ancestry, sex, age, religion, creed and marital status.