What is Zakat on Gold and Silver?
Zakat is one of the five pillars of Islam. It is an obligatory form of charity — 2.5% of your qualifying wealth, paid annually once your total assets exceed the nisab threshold. Gold and silver are among the most commonly held zakatable assets, whether in the form of jewellery, coins, or bullion.
If you own gold or silver and your total eligible wealth exceeds the nisab, you are required to pay Zakat on it.
Understanding the Nisab Threshold
The nisab is the minimum amount of wealth you must possess before Zakat becomes due. It is based on one of two standards:
- Gold nisab: 87.48 grams of gold (approximately 2.81 troy ounces)
- Silver nisab: 612.36 grams of silver (approximately 19.69 troy ounces)
Most scholars recommend using the silver nisab because it is lower, meaning more people qualify to pay Zakat. This is considered the more cautious and generous approach.
The nisab value in pounds changes daily because it is tied to the market price of gold and silver. You can check the current nisab using our Zakat calculator, which fetches live prices automatically.
Step-by-Step Calculation
Here is how to calculate your Zakat on gold and silver:
- Step 1: Weigh your gold and silver. Include all jewellery, coins, bars, and bullion. If you are unsure about the weight of your jewellery, most high street jewellers will weigh it for free.
- Step 2: Find the current market price per gram in GBP. Our Zakat calculator does this automatically using live prices.
- Step 3: Multiply the weight in grams by the price per gram. This gives you the total value of your gold or silver in pounds.
- Step 4: Add this to your other zakatable assets — cash, savings, investments, trade goods, and money owed to you.
- Step 5: Subtract any immediate debts or liabilities.
- Step 6: If the remaining total exceeds the nisab threshold, pay 2.5% of the entire amount as Zakat.
Do I Pay Zakat on Jewellery I Wear?
This is one of the most common questions. Scholars differ on this point:
- Hanafi school: Zakat is due on all gold and silver jewellery, whether worn regularly or not.
- Shafi'i, Maliki, and Hanbali schools: Jewellery worn regularly for personal adornment is generally exempt from Zakat, provided it is within a reasonable amount.
If you are unsure, the safer approach is to include your worn jewellery in the calculation. Consult a scholar for guidance specific to your situation.
A Practical Example
Suppose you own 100 grams of gold jewellery and the current price of gold is £113 per gram.
Your gold is worth: 100 x £113 = £11,300
You also have £5,000 in savings and owe £2,000 in debts.
Total eligible wealth: £11,300 + £5,000 - £2,000 = £14,300
The silver nisab is approximately £1,115 (check the live nisab for today's exact figure). Since £14,300 exceeds £1,115, Zakat is due.
Your Zakat: £14,300 x 2.5% = £357.50
When Should I Pay?
Zakat is due once a full lunar year (hawl) has passed since your wealth first exceeded the nisab. Many Muslims choose to pay during Ramadan because rewards for good deeds are multiplied, but it can be paid at any time of year.
Pay Your Zakat With Confidence
At Deen Relief, we operate a 100% Zakat policy — every penny of your Zakat reaches eligible recipients. Our trustees verify every case before funds are released, and our accounts are publicly audited through the Charity Commission.
Use our Zakat calculator to estimate your Zakat today, or pay your Zakat now with confidence.