How zakat applies to gold and silver held as savings and as jewellery, and the difference between the Hanafi school and the majority.
Gold and silver have a special place in the rules of zakat, since the classical nisab is measured in them.
The Qur’an and the hadith
- The Qur’an warns those who hoard gold and silver and do not spend it in the way of Allah (9:34). Many scholars relate this verse to wealth on which zakat is not paid.
- A report from Amr ibn Shu‘ayb describes a woman who came to the Prophet ﷺ with her daughter, who wore two heavy gold bangles. He asked whether they paid zakat on them, and when she said no, he said: are you pleased that Allah may put two bangles of fire on your hands? (Sunan Abi Dawud 1563, graded hasan by al-Albani and others.)
Practical points
- Weigh the pure gold in each item. Gold jewellery marked 18 carat is 75% pure, so 100 grams of it holds 75 grams of pure gold.
- Gold and silver bought as an investment or savings are zakatable when they reach the nisab, and a year passes.
- Gold and silver you hold can also count with your cash and other wealth in reaching the nisab, depending on the school.
Key points
- Gold and silver held as savings, coins or bars are zakatable once they reach the nisab and a year passes.
- Zakat is due on the weight of pure gold or silver, not on the weight of any alloy.
- The Hanafi school requires zakat on worn jewellery; the majority of scholars do not require it on permissible jewellery for personal use.
- Jewellery held as an investment or for sale is treated as zakatable wealth by all schools.
Qur’an
“O you who have believed, indeed many of the scholars and the monks devour the wealth of people unjustly and avert [them] from the way of Allah. And those who hoard gold and silver and spend it not in the way of Allah - give them tidings of a painful punishment.”
Surah At-Tawbah (9) — 9:34
Hadith
Amr bin Shu'aib on his father's authority said that his grandfather reported: A woman came to the Messenger of Allah (ﷺ) and she was accompanied by her daughter who wore two heavy gold bangles in her hands. He said to her: Do you pay zakat on them? She said: No. He then said: Are you pleased that Allah may put two bangles of fire on your hands? Thereupon she took them off and placed them before the Prophet (ﷺ) saying: They are for Allah and His Apostle.
Sunan Abi Dawud, no. 1563 .
Hadith text and grading above are shown as supplied by their source. HikmahBridge does not grade Hadith itself. See Sources & Methodology.
Scholarly notes
Worn jewellery: the Hanafi school holds that zakat is due on gold and silver jewellery, even if it is worn, relying on reports such as the one above. The Maliki, Shafi‘i and Hanbali schools hold that zakat is not due on permissible jewellery worn for personal use, treating it as personal property like clothing, and they read the report above differently or question how it applies. All schools require zakat on jewellery kept as an investment or for sale, or held beyond what custom allows. Combining gold, silver and cash to reach the nisab is also treated differently by school. Follow your school or a trusted teacher.
FAQ
I have jewellery I never wear. Do I pay zakat on it?
Most scholars agree that jewellery kept as a store of value rather than for use is zakatable. Ask your teacher how your school treats jewellery you own but rarely wear.
How do I know how much pure gold I have?
Check the purity mark, for example 18K or 22K, and multiply the item weight by the purity fraction.
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