Among the various discussions regarding the obligation of zakat, one of the most significant is the zakat on gold and silver. These two forms of wealth have historically been regarded as the primary zakatable assets.
In ancient times, gold and silver were not merely precious metals; they served as the main mediums of exchange and wealth accumulation. People conducted transactions using them, and even the common masses rarely possessed wealth in any form other than gold and silver. Due to their widespread use and intrinsic value, Islam made zakat obligatory on both metals.
With the passage of time, paper currency and commercial assets became prominent, expanding the scope of zakatable wealth. However, despite these changes, gold and silver remain central to zakat obligations, and their zakat remains obligatory even today.
The Serious Warning Against Hoarding Gold and Silver
Islam strongly condemns hoarding wealth without fulfilling the duty of zakat. The Qur'an explicitly warns about the severe consequences awaiting those who withhold their wealth and refuse to spend it in the way of Allah:
"And those who hoard gold and silver and do not spend it in the way of Allah—give them tidings of a painful punishment. On the Day it will be heated in the fire of Hell and seared on their foreheads, their flanks, and their backs. (It will be said,) 'This is what you hoarded for yourselves, so taste what you used to hoard.'"
(Surah At-Tawbah, 9:34-35)
The Prophet Muhammad (ﷺ) further emphasized the severity of failing to pay zakat on gold and silver:
"Every owner of gold and silver who does not pay zakat on it, his wealth will be turned into sheets of fire on the Day of Judgment. These will be heated in the fire of Hell and used to brand his forehead, sides, and back. Whenever they cool down, they will be reheated, and this process will continue for a day equivalent to fifty thousand years, after which his fate will be decided—either to Paradise or Hell."
(Sahih Muslim, Authentic Hadith)
These warnings illustrate that withholding zakat is not merely a financial offense—it is a grave spiritual transgression with dire consequences.
Zakat on Gold: The Nisab and Calculation
The Minimum Threshold (Nisab) for Gold
The Prophet Muhammad (ﷺ) set clear guidelines regarding the nisab (minimum threshold) for gold:
"Zakat is not obligatory on gold weighing less than twenty dinars. If someone possesses twenty dinars of gold for one full year, he must give half a dinar as zakat."
(Sunan Abu Dawood)
Using weight conversions, the nisab for gold is determined as follows:
- 1 dinar = 4.374 grams
- 20 dinars = 20 × 4.374 = 87.48 grams
Thus, if a person owns 87.48 grams or more of gold for one full lunar year, they are obligated to pay 2.5% zakat on its total value.
Rules for Giving Zakat on Gold
- Personal Use vs. Investment: Whether gold is used as personal jewelry or kept as an investment, if it meets the nisab, zakat must be paid.
- Mixed Metals: If gold is mixed with other metals, zakat is calculated based on the actual gold content.
- Gold Stored in Banks or Safes: Zakat applies equally to gold stored in bank vaults, safety deposit boxes, or investment accounts—its market value at the time of zakat calculation determines the amount due.
Practical Calculation Example
If someone owns 100 grams of gold, they first need to determine the market price per gram.
- If the price of 1 gram of gold = 10,000 BDT, then:
100 × 10,000 = 1,000,000 BDT (total value of gold) - The zakat amount at 2.5% is:
1,000,000 × 2.5% = 25,000 BDT
Thus, they must pay 25,000 BDT as zakat.
Zakat on Silver: The Nisab and Calculation
The Minimum Threshold (Nisab) for Silver
The Prophet Muhammad (ﷺ) set the nisab for silver as follows:
"Zakat is not obligatory on silver that is less than five uqiyyah." (approximately 612.36 grams)
(Sahih Muslim)
Using weight conversions, the nisab for silver is determined as:
- 1 dirham = 3.06 grams
- 200 dirhams = 200 × 3.06 = 612.36 grams
Thus, if a person owns 612.36 grams or more of silver for one full lunar year, they are required to pay 2.5% zakat on it.
Practical Calculation Example
If someone owns 800 grams of silver, and the market price per gram is 200 BDT, then:
- Total value of silver:
800 × 200 = 160,000 BDT - The zakat amount at 2.5% is:
160,000 × 2.5% = 4,000 BDT
Thus, they must pay 4,000 BDT as zakat.
Combining Gold and Silver for Zakat Calculation
When Gold and Silver Are Combined, and Their Total Value Reaches Nisab
Islamic scholars differ on whether gold and silver should be considered separately or combined when determining zakat eligibility.
- Separate Calculation: Some scholars argue that gold and silver should be treated independently, meaning if neither reaches its individual nisab, no zakat is due.
- Combined Market Value Approach: Others argue that if the combined market value of both gold and silver reaches the nisab of either metal, then zakat must be paid.
Example Calculation
Suppose a person owns:
- 440 grams of silver
- 42 grams of gold
Individually, neither reaches its respective nisab. However, if their combined market value reaches or exceeds the nisab of either metal, zakat becomes obligatory.
Thus, individuals should determine the market price of both metals, calculate their combined value, and pay 2.5% zakat accordingly.
Zakat on Gold and Silver Along with Cash
If someone owns gold, silver, and cash savings, they should combine the total value of all assets. If this total value meets or exceeds the nisab threshold, zakat becomes obligatory.
This ensures that all forms of wealth are taken into account, following the spirit of zakat in wealth purification and redistribution.
The Importance of Paying Zakat on Gold and Silver
Zakat on gold and silver is not just a financial obligation—it is a spiritual responsibility that purifies wealth and ensures fair economic distribution. Hoarding wealth without paying zakat results in severe consequences, as warned by the Qur'an and Hadith.
To ensure compliance with Islamic teachings, every believer must:
✔️ Determine their total gold and silver holdings
✔️ Calculate their zakat obligation based on current market values
✔️ Pay zakat annually to fulfill their religious duty
By doing so, wealth remains pure and beneficial, fostering compassion, generosity, and economic justice in society.