Gold and silver are more than just shiny metals. They are the original yardsticks for zakatable wealth. In fact, the very definition of the nisab—the minimum amount of wealth you must own before zakat becomes mandatory—is rooted in the weight of these two metals. If you own gold or silver that stays above a certain weight for one full lunar year, you owe 2.5% of its value to those in need.
Many people find the math a bit scary. It doesn’t have to be. Once you understand how to weigh your items and check the current market rates, the process becomes a simple yearly habit. Let’s break down the numbers so you can calculate your dues with total confidence.
Understanding the Nisab Thresholds for Gold and Silver
The nisab is like a gate. If your wealth is below this gate, you don’t pay zakat. If it’s at or above it, the gate opens. The weights were set centuries ago but remain the same today. Here are the specific numbers you need to know:
- Gold Nisab: 87.48 grams (this is roughly 20 mithqal or 7.5 tolas).
- Silver Nisab: 612.36 grams (this is roughly 200 dirhams or 52.5 tolas).
If you hold either of these amounts for one full lunar year (a Hawl), you must pay 2.5% zakat on the total value. It is important to remember that the lunar year is about 11 days shorter than the solar year, which affects your anniversary date.
Gold Nisab vs. Silver Nisab: Which One Should You Use?
This is a common question. Scholars have two main views on this. Back in the day, the value of the gold nisab and the silver nisab were very close. Today, they are worlds apart. Silver is much cheaper, which means its nisab threshold is much lower in dollar terms.
Because the silver nisab is lower, more people qualify to pay zakat under it. Many modern scholars recommend using the silver nisab because it results in more charity for the poor. However, other scholars stick to the gold nisab for gold holdings. The actual math you perform is identical regardless of which threshold you choose to follow.
Example 1: Calculating Zakat on Gold Jewelry
Let’s say you own 120 grams of gold jewelry. You have held it for over a year. Let’s assume the current market price is $85 per gram for illustrative purposes. First, we check the weight: 120g is more than the 87.48g threshold. Zakat is due.
You can calculate this two ways. By weight: 2.5% of 120g is 3 grams of gold. At $85/g, that equals $255. By value: 120g multiplied by $85 is $10,200. Take 2.5% of that, and you get $255. Both ways lead to the same result. You just need to find the “scrap” or market value of the gold on your zakat due date.
Example 2: Silver Coins Below the Nisab
What if you have 500 grams of silver coins? Since 500g is less than the 612.36g threshold, you might think you owe nothing. If silver is the only asset you own, that is correct. No zakat is due.
But life is rarely that simple. Most people also have cash in the bank or a bit of gold. If you have other zakatable assets, you must combine their values. The value of those 500 grams of silver will be added to your cash and gold total. If the grand total hits the nisab, you pay 2.5% on everything, including the silver.
Example 3: Mixed Gold and Silver Holdings
Imagine you have 50g of gold and 300g of silver. Neither one hits its own weight threshold. To see if you owe zakat, you convert them both to their cash value. Using our example prices (Gold $85/g, Silver $1.10/g), the math looks like this:
Gold value: $4,250. Silver value: $330. Total: $4,580. Now, compare this to the silver nisab value (612.36g x $1.10 = $673.60). Since $4,580 is way above $673.60, zakat is due on the full amount. Your payment would be $114.50 ($4,580 x 2.5%).
Karat Purity and Weight Conversions
Zakat is only paid on the “pure” gold content. Most jewelry isn’t 100% gold. It is mixed with other metals to make it stronger. You need to adjust the weight based on the karat. Here is a quick guide:
- 24k = 100% pure
- 22k = 91.7% pure
- 21k = 87.5% pure
- 18k = 75% pure
- 14k = 58.3% pure
If you have 150g of 22k jewelry, you don’t calculate based on 150g. You multiply 150 by 0.917 to get 137.55g of pure gold. That is the number you use for the nisab test and the 2.5% calculation. Also, remember to subtract the weight of any diamonds or gemstones first. Zakat is not due on the stones themselves unless you are a jewelry trader.
Is Zakat Due on Jewelry You Wear Daily?
This is where different schools of thought come in. In the Hanafi school, you must pay zakat on all gold and silver jewelry you own, even if you wear it every day. If it’s over the nisab, you pay.
The majority view (Maliki, Shafi’i, and Hanbali) is different. They generally exempt jewelry that is for personal use and kept in “customary” amounts. However, if you buy jewelry as an investment or have an excessive amount, most scholars agree it becomes zakatable. Other precious metals like platinum or stones like diamonds are only zakatable if you bought them specifically to trade or sell for profit.
Where to Find Accurate Prices
Timing is everything. You should value your gold and silver based on the market price on your specific zakat anniversary date. Don’t use the price you paid when you bought it years ago. Use the current “selling price” per gram in your local market for the specific karat you own.
I find it helpful to check a reliable financial website or call a local jeweler on the day. Write the price and the date down. This makes your record-keeping much easier for the following year.
Five Rules to Prevent Calculation Mistakes
- Always use the weight in grams as your primary check, not the dollar amount you spent.
- Deduct the weight of non-gold parts like alloys, stones, and pearls.
- Ensure you have owned the assets for one full lunar year.
- Check the spot prices on the actual day your zakat is due.
- Combine your gold and silver with your cash and business inventory before testing against the nisab.
Try it: Using our nisab calculator can help you convert those gram thresholds into your local currency instantly. If you are ready to do the math, the zakat calculator handles the 2.5% for you. For more context on why we do this, read our zakat pillar guide.
Frequently Asked Questions
How many grams of gold is the nisab? The gold nisab is 87.48 grams of pure gold.
What is the nisab for silver? The silver nisab is 612.36 grams.
Should I use the gold or silver nisab? This depends on your school of thought. Many modern scholars suggest the silver nisab because it is more beneficial for the recipients of charity.
Do I pay zakat on jewelry I wear every day? If you follow the Hanafi school, yes. In other schools, “customary” personal jewelry is often exempt.
Do I include making charges and gemstones in the value? No. Zakat is only due on the raw weight of the gold or silver. Making charges and stones are excluded unless the item is trade stock.
Is investment gold zakatable? Yes, absolutely. Any gold held as an investment is subject to zakat based on its current market value.
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