35.0 CHAPTER ZAKAT ON GOLD AND SILVER
Zakat is wajib when gold weighs twenty mithqal and on silver when it is equivalent to two hundred dirhams. A quarter of a tenth of these values are paid as zakat.
“Chapter: Zakat on Gold and Silver”: Gold and silver are also known as naqdayn in Arabic. Gold and silver refer to all that serves a similar function to how paper currencies are used in the present era.
“Zakat is wajib when gold weighs twenty mithqal and silver when it is equivalent to two hundred dirhams. A quarter of a tenth of these values are paid as zakat”: The nisab of gold is twenty mithqal and the nisab of silver is one hundred and forty mithqal (See al-Mughni (4/209).) which is equivalent to two hundred dirhams in Islamic terms. If one has property of gold or silver that attains the nisab, then zakat is wajib and a quarter of a tenth or simply one-fortieth is to be paid. That is, 2.5% of it.
Twenty mithqal is equivalent to eighty-two grams approximately. The value of it is approximately eleven and a half Saudi pounds. Two hundred dirhams of silver is one hundred and forty mithqal which is equivalent to five hundred and ninety-five grams approximately.
Gold and silver are combined together to attain the nisab. The value of tradable goods is combined with gold and silver.
“Gold and silver are combined together to attain the nisab”: If he has some gold and silver and combining both attains the nisab, then he must pay zakat on it as they are considered as similar in terms of wealth and they both serve the same purpose. Does he have to pay zakat if he has many types of paper currencies which attain nisab when combined?
Yes. Paper currencies are similar to mineral wealth. The nisab of silver is fifty-six Saudi riyals or its equivalent. Hence, he may calculate if his paper currencies attain the nisab. In this case, he has to pay zakat.
“The value of tradable commodities is combined with gold and silver”: If he has tradable goods which have not attained the nisab and he has gold or silver, then he combines the value of all of these together. This is because they are all parts of his wealth.
Men are allowed to wear silver rings, have silver pommel for a sword and tie a silver girdle and the like.
“Men are allowed to wear silver”: It is permissible for men to wear silver of the following:
First: “Rings”: A Muslim male may wear a silver ring as the Prophet(pbuh) used to wear it. (Reported by al-Bukhari (7/202) from the narration of Ibn ‘Umar.) Gold rings are forbidden for men.
Second: “Pommel”: This is a rounded knob on the end of the handle of a sword. It is also allowed to embroider the sword and its sheath with silver. The Companions used to own swords that had silver pommels or pommels with silver embroidered on the sides.
Third: “Girdle ”: This is a belt which is called hisayah in Arabic. This belt has pouches wherein things can be put. It is permissible to embroider it with silver if it is used by men.
“And the like”: Where the use of silver is necessary. Examples would be like wearing a watch or spectacles which have silver parts. Small quantities of it is not an issue.
And gold pommel of a sword and whatever is required in case of an emergency.
“And gold”: I.e., the use of gold which is permitted. Its use is very limited as compared to silver. The use of gold is forbidden for men and is allowed only where evidence points to an exception. These are:
First: “Gold pommel of a sword”: This was a practice of the Companions.
Second: “Whatever is required in cases of dire need”: That is, only the use of gold will alleviate the problem. An example being if a nose is severed, then a nose made of gold can be used to replace it. This is because unlike silver, gold does not rust.
Third: Another example would be using a gold tooth. This is permissible if a person needs to replace his teeth. Gold is used as it is resistant to rust. Silver placed in the mouth will rust and corrode due to the prevalent moisture.
It is permissible for women to wear gold and silver what is customary, even if it is a lot.
“It is permissible for women to wear gold and silver”: This is in accordance to the injunction of Allah: {[Do they then like for Allah] a creature who is brought up in adornments (wearing silk and gold ornaments, i.e., women), and in dispute cannot make herself clear?} (Al-Zukhruf: 18) This is in reference to women.
Women should adorn themselves with jewelry. Even the women who lived during the lifetime of the Prophet(pbuh) used to adorn themselves with gold and silver. The Prophet(pbuh) addressed them saying, “O womenfolk! Give charity even if it is your jewelry.” (Reported by al-Bukhari (2/150) and Muslim (3/180) from the narration of Zaynab, the wife of Abdullãh ibn Mas’ud.)
“What is customary, even if is a lot”: Wearing of gold and silver is permissible for woman as long as it confines to what is normal or customary for a Muslim woman to wear. Examples of the types of jewelry would be silver or gold rings, necklaces, anklets and any other piece of jewelry that is customary for a Muslim woman to wear. The Prophet(pbuh) said regarding gold and silk, “… [They are] forbidden for the males of my nation and permissible for the womenfolk.” (Reported by Ahmad (4/394,407), al-Tirmidhi (1720) and al-Nasa’i (8/161) from the narration of Abu Musa al-Asha’ri) This is because it is necessary for a woman to adorn herself especially with jewelry. Hence it is permissible for women provided that it does not reach an extravagant level.
There is no zakat for jewelry that is meant for personal use or that which is lent out. If it is for renting or meant as savings or it is forbidden, then zakat is payable on jewelry.
“There is no zakat for jewelry that is meant for personal use or that which is lent out”: It is permissible for women to adorn themselves with gold and silver jewelry when it is worn as an ornament to beautify herself and to please her husband. There is no zakat for it even if the nisab is attained. This is because it is considered as something that is for daily use like clothes, houses and vehicles. Hence it is not an investment but becomes a necessity. This is the madhab of most of the scholars. (This is the view of Imam Malik and al-Shafi’i. See al-Mughni (4/220) and al-Insaf {3/138).)
However, if jewelry is used as a tradeable commodity or as savings or investment, then zakat becomes wajib on it. The most preferred view, with the will of Allah, is that there is no zakat payable on jewelry that is used as ornaments for personal use only. Otherwise, a poor woman will have only two choices: she has to give up her jewelry or she must obtain a debt to pay the zakat on her jewelry. This is a great burden. Alternatively, her husband or guardian pays the zakat on her behalf though he is not obliged to do so.
Zakat becomes wajib in the following situations:
First: “If it is for renting or meant as savings”: If jewelry is in possession but not for personal use or it is used as a tradeable commodity during festivals or special occasions. It is also considered to be an investment or as savings where it is possessed until the price of gold or silver rises and then the jewelry is sold off for a better price than the purchase price. This is akin to using it as a tradeable commodity. Hence zakat is payable for this jewelry when it has been in possession for a year and the nisab is attained. Zakat becomes wajib on the jewelry as it is neither for personal use nor used often.
Second: “Or it is forbidden”: I.e., if it is used in a forbidden manner such as a kohl container, pencil or incense-holder.
Third: If the jewelry worn is not customarily worn by women i.e., it is in a manner leading to extravagance.
Therefore, the issue of jewelry, which has been discussed in detail, can be compressed into one preferred view: The view of the majority of scholars which states that items of jewelry which are ornaments for personal use are exempt from zakat. It is considered as an item of daily use such as clothing, houses and vehicles. This is the view of many of the scholars from the salaf and khalaf.
When jewelry is used for trade and as an investment or it is a piece that is not customary to Muslim women, then zakat is wajib on these items of jewelry based upon the original principle (asl): Zakat is wajib on gold and silver. Only items of jewelry used as ornaments for personal use are exempt from zakat.
By Shaykh Salih ibn Fawzan al-Fawzan
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