Zakat for Gold and Silver

Recently, there is a campaign to invest in gold by a group of Malaysian. This is a wise strategy because the value of gold always appreciated over the year. However, we do not forget to pay zakat as our responsibility as Muslim.

According to The holy of Quran by Abdullah Yusof Ali, under surah At-Tawbah sentence 34

“O ye who believe! There are

Indeed many among the priests

And anchorites who in

falsehood.

Devour the substance of men

And hinder (them) from the Way

Of Allah. And there are those

Who bury gold and silver

And spend it not in the Way

Of Allah: announce unto them

A most grievous penalty-”

From the translation,

“misuse of wealth, property and resources is frequently condemned and in 3 ways

1. Do not acquire anything wrongfully or false pretences
2. Do not hoard or bury or amass wealth for its own sake, but use it freely for good, whether for yourself or your neighbours
3. Be particularly careful not to waste it for idle purposes but only so that it may fructify for good of the people.”

Below there are the calculation to compute the zakat for Gold & Silver

Zakat for Gold can be divided into 2 categories

A) Gold under utilized within a year and equal or more than 85 gram when (nisab), then the zakat is 2.5% without including “uruf”.

Example:
Market value = RM8,0000
Zakat = RM8,0000 x 2.5% = RM200

B) Gold being utilized which means either frequently or being used within the year and more than the value of “uruf” (RM5,000) then zakat need to pay. The computation is based on the value of gold and excluding diamond and others jewelry.
Example :

Market value = RM 25,000
Minus uruf = RM 5,000

The balance of RM20,000 x 2.5% = RM500

Calculation of zakat silver

The ratio is 595 gram and zakat need to pay after the amount.

Example

Market value = RM8,0000
Zakat = RM8,0000 x 2.5% = RM200