Zakat on Gold & Silver — Easy Nisab & Calculation Guide
Zakat is one of the five pillars of Islam and a powerful way to purify wealth. Many Muslims own gold and silver in the form of jewelry, coins, or stored assets. Knowing how to calculate zakat on these items is important to make sure obligations are fulfilled correctly. This guide will walk you step by step through nisab, valuation, and practical examples so you can confidently calculate zakat on your gold and silver holdings.
In simple terms, zakat is due when your wealth reaches a minimum threshold (called nisab) and a full lunar year has passed. Gold and silver are considered wealth that is subject to zakat. The Prophet Muhammad (peace be upon him) emphasized the importance of giving zakat to cleanse wealth and support the needy. According to Islam Q&A, failing to pay zakat is a serious neglect of duty. Organizations such as Islamic Relief Worldwide also provide guidance and collection for zakat funds.
Step 1: Determine total gold & silver
Start by identifying all the gold and silver in your possession. This includes jewelry, coins, bars, or any other form of precious metals. Scholars differ on whether women’s everyday jewelry should be included, but if the jewelry is stored for investment or not used regularly, it is generally included. Weigh your gold and silver and note the total grams for each.
Step 2: Check current market price
The next step is to find the current market price of gold and silver per gram in your local currency. You can check local jewelers, bullion markets, or international sources like the World Gold Council. Multiply the weight of your gold and silver by the price per gram to get the total value.
Step 3: Compare with nisab
Nisab is the minimum threshold of wealth that makes zakat obligatory. The nisab is measured either by gold or silver:
- Gold nisab: 87.48 grams (approximately 7.5 tola)
- Silver nisab: 612.36 grams (approximately 52.5 tola)
Most scholars recommend using the silver nisab because it benefits more people, as silver has a lower threshold. If your total wealth in gold and silver is equal to or above the nisab, zakat becomes due.
Step 4: Apply the zakat formula
Zakat = Total eligible value × 2.5% (0.025)
For example, if your gold is worth 200,000 PKR and your silver is worth 0, then your total eligible wealth = 200,000 PKR. If the silver-based nisab is 50,000 PKR, then zakat due = 200,000 × 0.025 = 5,000 PKR.
Step 5: Make the payment
Once you know the exact zakat amount, distribute it to eligible recipients: the poor, the needy, those in debt, or Islamic charitable organizations. Trusted NGOs such as Islamic Relief Worldwide and local charities can also distribute zakat on your behalf, ensuring it reaches the right people.
Practical notes & common questions
- Jewelry: Everyday jewelry for personal use is exempt according to some scholars, but investment jewelry should be included.
- Mixed assets: If you have gold and silver together, add their total value before comparing with nisab.
- Timing: Zakat is due once every lunar year. Choose a fixed Islamic date (like Ramadan 1st) to make calculation easy.
- Accuracy: Keep a record of weights, market rates, and calculation each year.
- Consultation: If confused, consult a local scholar for rulings specific to your school of thought.
Why zakat matters
Zakat is not just a tax or donation — it is a spiritual act that cleanses wealth and soul. By giving 2.5% of your gold and silver wealth, you are helping the poor, reducing inequality, and following the command of Allah. According to the World Health Organization, social support and financial fairness play a direct role in community wellbeing — and zakat is one of the strongest tools for this in Islam.
Use our Zakat Calculator
To avoid mistakes, you can use our free Zakat Calculator. Just enter the weight and price of your gold and silver, and the tool will calculate your zakat instantly. This makes it easy to keep accurate records and stay confident that you are fulfilling this obligation properly.
Bottom line: Zakat on gold and silver is simple once you understand the steps. Weigh your metals, check current market prices, compare with nisab, apply the 2.5% formula, and pay on time. By doing this, you ensure your wealth is purified and your duty to Allah is fulfilled.