What zakat on gold and silver means
Zakat is the obligatory annual charity on certain kinds of wealth. Gold and silver are among the oldest categories named in the sources of Islamic law, so most scholars treat them as zakatable wealth in themselves, whatever form they take.
Two conditions decide whether zakat is due:
- Nisab: the minimum amount of wealth. Below it, no zakat is due.
- Hawl: the wealth must stay at or above nisab for a full lunar (Hijri) year.
When both are met, zakat is paid at the standard rate set in fiqh on the zakatable wealth. The zakat calculator applies this rate for you. If you follow a particular scholar or institution, confirm the rate and method with them.
This page gives an overview of the views. It does not give a ruling. For your own case, ask a qualified mufti or your local Darul Ifta.
Ready to try it on a real or demo account?
Partner link · trading carries a high risk of loss
Nisab for gold and silver
The nisab comes from hadith that set it in old units of weight: mithqal or dinar for gold, and dirham or awqiyah for silver. In Pakistan it is usually quoted in tola, and today it is also given in grams.
The gram figures are modern conversions of those classical weights. Scholars use slightly different conversion values, so you will see small differences between sources. The figures most often quoted in Pakistan come from local fatwa institutions and Islamic banks. Internationally, the AAOIFI Shariah standard on zakat is a common reference. Read the standard or the fatwa you follow to get the exact gram figure. The calculator below lets you set the nisab in grams, so you can enter the figure your source uses.
Gold nisab or silver nisab?
Silver costs much less than gold per gram. As a result, the silver nisab in rupees is far lower than the gold nisab. This matters in practice.
- Only gold, nothing else: most scholars compare your gold to the gold nisab.
- Only silver: compare to the silver nisab.
- Mixed wealth (some gold, some cash, savings, trade goods): in the Hanafi school, which most people in Pakistan follow, many fatwas say to use the silver nisab. It is lower, so more people pay, and that is seen as better for the poor. Other scholars accept the gold nisab for mixed or cash wealth, arguing that it better reflects the value the nisab had at the time of the Prophet.
Pakistani fatwa institutions in the Hanafi tradition generally publish the silver-nisab position for mixed wealth. Check with the institution you follow.
Combining gold and silver
If you own some gold and some silver and neither reaches nisab alone, schools differ:
- Hanafi: combine them by value. If the total value reaches nisab, zakat is due.
- Shafi'i and some Hanbali scholars: each metal is assessed separately against its own nisab.
The jewellery debate
The biggest difference of opinion is about gold and silver jewellery for personal use.
| View | Position on personal jewellery | Held by |
|---|---|---|
| Zakat is due | Jewellery is gold or silver, so it is counted like any other gold and silver | Hanafi school; many scholars in Pakistan and South Asia |
| Zakat is not due | Permissible jewellery in regular personal use is like clothing, not stored wealth | Maliki, Shafi'i and Hanbali schools (majority position in many other regions) |
| Middle positions | Zakat on jewellery kept for saving or investment, worn rarely, or beyond what is customary; no zakat on normal worn pieces | Various scholars within the majority schools |
Points that most views agree on:
- Gold and silver kept as bars, coins or investment are zakatable.
- Jewellery bought for trade (for example, by a jeweller) is zakatable as trade goods.
- Jewellery belongs to its owner. A wife's gold is her wealth, not her husband's, unless ownership is different in fact.
Since Pakistan is largely Hanafi, most local guidance counts household jewellery in zakat. If your family follows another school, ask a scholar of that school.
Purity, weight and value
Zakat on gold is calculated on its value on your zakat date, not on what you paid for it.
- Weigh the gold. Jewellers in Pakistan usually quote in tola and masha. Other markets use grams, troy ounces, baht or luong.
- Check the purity (karat). Jewellery is often an alloy. Many scholars say to count the pure gold content. Others say the whole piece counts as gold if gold is the main component. Follow the method your scholar uses.
- Ignore gemstones and, in most views, making charges. Stones such as diamonds are not zakatable unless held for trade.
- Use a fair price. Many people use the price at which a jeweller would buy the gold back from you, not the selling price. Some scholars accept the market selling rate. Check current local rates; see Gold in Pakistan for how prices are quoted.
The gold calculator turns weight, unit and purity into a value at the price you type:
Fill in the empty fields to see the result.
| Karat | Fineness, ‰ | Price per gram at this purity |
|---|
Value = grams × purity (karat / 24) × price per gram of pure gold. 1 troy ounce = 31.1035 g, 1 tola = 11.6638 g, 1 baht = 15.244 g, 1 luong = 37.5 g. Shops add making charges and buy back below the selling price.
Gold zakat calculation, step by step
- Fix your zakat date (the Hijri date when your wealth first reached nisab).
- Value your gold and silver with the calculator above.
- Add other zakatable wealth: cash, bank balances, savings, trade goods, and investments as explained in zakat on investments.
- Deduct debts due now, according to the method you follow.
- Compare the net total to the nisab you use (gold or silver, in grams).
- If the total is at or above nisab, apply the zakat rate.
Fill in the empty fields to see the result.
Zakat = rate × (assets − debts) when the net wealth reaches the nisab (grams × price per gram) and a lunar year has passed. Scholars differ on details; follow the opinion you rely on.
For a full walk-through with other assets, see the zakat calculator page.
Gold held through trading accounts
Some people hold exposure to gold through gold CFDs or XAUUSD on a trading account. A CFD is a contract on the price; you do not own physical gold. Scholars generally look at what you actually own on the zakat date, which is usually the cash value of the account, not a weight of gold. Whether such trading is permissible at all is a separate question; see Is gold trading halal?.
Leveraged CFD trading can lose money fast, including the money you planned to count for zakat. Pakistani regulators also warn about offshore platforms; see Law and regulators.
Frequent questions
Is zakat due on gold I wear every day?
It depends on the school. In the Hanafi view, followed by most people in Pakistan, yes. In the Maliki, Shafi'i and Hanbali views, normal personal jewellery is generally exempt. Ask a scholar of your school.
What is the nisab of gold in Pakistan?
It is given in tola and grams, based on classical weights. Gram figures vary slightly between sources, so use the figure from the fatwa institution you follow and enter it in the calculator.
Should I use the gold or silver nisab?
For mixed wealth, many Hanafi fatwas in Pakistan use the silver nisab. Other scholars accept the gold nisab. For gold alone, the gold nisab is commonly used.
Do I pay zakat on the purchase price or today's value?
On the value on your zakat date. Many scholars prefer the price a jeweller would pay you to buy it back.
Is zakat due on silver?
Yes. Silver is zakatable like gold, with its own nisab. The jewellery debate applies to silver jewellery too.
Do gemstones in jewellery count?
In most views, no, unless they are held for trade. Count only the gold or silver content.