Calculating Zakat of Gold
Assalamu’alaikum ustadz. I’d like to ask about zakat of wealth. I have about 100 grams of gold bullion on July. Then in August, it underwent a cutback to 88 grams (I sold it). 6 months afterward I bought more gold about 7.5 grams. How to calculate its zakat obligation?
Thank you, may Allah reward you greatly.
From: Taufik Hidayat
In the name of Allah. Peace and prayer of Allah be upon His messenger.
Zakat of gold, silver, and money isn’t compulsory until some requirements regarding it are fulfilled, namely:
The owner is a muslim.
The owner is a free man, not a slave.
The gold, silver, and money are entirely owned.
Its amount has reached the nishab of zakat.
Its amount isn’t diminish for a full one year period.
The Messenger of Allah – peace and prayer of Allah be upon him- said,
لَيْسَ فِي أَقَلَّ مِنْ عِشْرِينَ مِثْقَالاَ مِنَ الذَّهَبِ، وَلاَ فِي أَقَلَّ مِنْ مِائَتَيْ دِرْهَمٍ صَدَقَةٌ
“There’s no zakat for gold which amount is below 20 mitsqal and silver below 200 dirhams.” (Narrated by Abu Ubaid in “Al Amwal” page 50, no. 1113. Classed as valid by Sheikh Al Albani in Irwa-ul-ghalil, no. 815)
According to Mu’jam Lughah Al-Fuqaha’, 1 mitsqal equals 4.24 gram; thus, 20 mitsqal is 4,24 gram x 20 = 84,8 gram.
Our government has defined the nishab for gold for zakat is about 85 gram of pure gold. This is also the opinion of Sheikh Muhammad Ibn Shalih Al Uthaymeen, and this is our stance. And Allah knows best.
If a person has gold weighing about 85 gram or more, he is not obliged to pay for zakat until he has that 85 gram of gold or more for a year without ever reduced from it.
Only after year he will be obliged to pay for its zakat. But if he wants to pay it before a year, he is allowed to do that.
For example, if a person has 100 gram of gold on the 1st of Muharram, 1435 H, then on the next year, the amount was still retained above the nishab, for example 88 gram, on the 1st of Muharram, 1436 H, then he is obliged to pay for its zakat.
But if, on the 5th of Ramadan, 1435 H, his gold lessen to 80 gram, or below the nishab, then the previous calculation is not valid anymore. Thus, days from the 1st of Muharram 1435 H to the 4th of Ramadan 1435 H are not taken into account anymore. He should start his count all over again on the day his gold has reached the nishab, i.e., 85 gram or more.
According to the opinion that I tend to agree with, and it is also the stance of the Lajnah Daimah Wal Ifta’ (Fatwa Commission of Saudi Arabia Kingdom), the calculation of zakat of gold, silver, money, and traded goods are all combined.
I tend to choose the opinion that says that the nishab for money and traded goods is equalled to or converted to the nishab for gold. Thus, its calculation should be combined with gold.
As for silver, it has a distinct calculation, i.e., 200 dirhams, or equal to 140 mitsqal, and 140 mitsqal x 4,24 gram = 593,6 gram. Or 595 gram, as our government decided, and this was the stance of Sheikh Muhammad Ibn Shalih Al Uthaymeen.
For example, a person has some wealth at the end of the year, as follows:
15 gram of gold
Money of IDR 10.000.000,-
Money of 4000 real
Traded goods valued about IDR 15.000.000,-
How to calculate the zakat?
First, we convert the IDR money to gold = IDR 10.000.000,- / IDR 495.000/gram = 20,2. gram
Next, we convert the real money to gold = 4000 real : 165 real/gram = 24,24 gram
We also convert the traded goods to gold = IDR 15.000.000,- / IDR 495.000/gram = 30.3 gram
Hence, we can see that the total number after the other wealth are converted to gold is = 15 + 20,2 + 24,24 + 30,3 gram = 89,74 gram. (This applies if the price of 1 gram of gold is IDR 495.000)
By this calculation, we know that the person is already obliged to pay the zakat because his wealth worth more than 85 gram of gold.
How much zakat should he pay?
He should pay zakat of 2.5% from those wealth: = 2,5 % x 89,74 gram = 2,2435 gram of gold.
If he intends to pay his zakat with gold, he is allowed, and if pays it with money, he is also allowed to. Thus, his zakat obligation in cash is 2,2435 gram of gold x IDR 495.000/gram = IDR 1.110.532,00
One might ask, what if I have silver, gold, and money?
I’ve mentioned earlier that the calculation of silver, gold, and money shall be combined. To know whether a person is obliged to pay zakat or not, we could use a formula that I’ve made:
(Nz) = (weight of gold/nishab for gold) + (weight of silver/nishab for silver)
If the value of Nz is more than 1, the person is obliged to pay zakat. But if it is below 1, he is not yet obliged to pay for it.
I’ve made this formula to ease the very long calculation mentioned in books of jurisprudence that agree with this opinion.
A person has:
50 gram of gold
300 gram of silver
Money of IDR 5 millions
First, we shall convert the money to gold, = IDR 5 millions : IDR 495.000/gram = 10.10 gram of gold.
Thus, the total amount gold is 50 gram + 10.10 gram = 60.10 gram.
Now lets use the formula:
Nz = (60,10 gram of gold: 85 gram of gold) + (300 gram of silver: 595 gram of silver) = 0,707 + 0,504 = 1,211
By this number, Nz more than 1, we know that the person is already obliged to pay zakat of 2.5% from his total wealth.
And to pay the zakat of gold and silver, he may convert it to the currently accepted money. For this case, the amount of zakat for gold is = 2,5 % x 60,10 gram x IDR 495.000,00/gram = IDR 743.737,00 and for silver is = 2,5 % x 300 gram x IDR 11.500,00/gram = IDR 86.250,00 .
From this explanation, insha Allah, you may get the answer of your question.
And Allah knows best. Billahittaufiq.
Answered by Ustadz Said Yai, MA (Lecturer at Islamic Center Al-Istiqomah Prabumulih, South Sumatra)
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