Blog Crowdfunding Syariah Islamic Economics Islamic Finance Muamalah Fiqh

How to Calculate and How to Pay Zakat on Gold as Investment?

Tri Alfiani16 April 2025

0 23 3 minutes read

One of the zakat that needs to be paid is on gold and silver. So, if these two precious metals have
reached the nishab and haul (one year of ownership) then the owner is obliged to pay zakat. In the
context of gold zakah, what is required is investment gold, not jewellery gold. Why is gold and silver subject to zakah?

Islam views these assets as assets that have the potential to grow as livestock, in the sense that gold that is subject to zakah is gold that becomes an investment. Gold that must be zakah here is in addition to the condition that it has reached the nishab and reached the haul, the investment gold must also be ensured that it is owned by yourself legally and halal, not from loans or other people’s property. Allah commands us to pay zakaah on gold (to spend in the way of Allah) as mentioned in the Quran

Surah At-Taubah verse 34 below:
“… And those who store up gold and silver and do not spend it in the cause of Allah, then let them
know (that they will have) a painful punishment.“
So, what types of gold and silver are subject to Zakat? here are some of criteria.

1. Gold as Investments

Gold or silver worn by women as lawful jewellery such as necklaces, bracelets and earrings are not
subject to zakaah as long as their use is not excessive. On the other hand, jewellery that is used
illegally, such as gold jewellery worn by men (except silver rings) or containers such as plates and
glasses made of gold, is subject to zakaah when it reaches the nisab. Not only jewellery, the obligation to pay zakat on goZakat on Gold and Silver and How to Calculate Itld or silver also applies to gold and silver bars, fuses, metals, vessels, souvenirs, carvings, and the like.

2. Nishab Zakat on Gold and Silver and How to Calculate It?

The nishab for gold zakat is 85 grams, while the nishab for silver zakat is 595 grams. The rate is 2.5%
of the gold or silver owned. The scholars are of the view that zakaah is due on gold. If the gold is mixed, then the obligation of zakaah applies only to the gold and not to the mixture. Therefore, the fuqaha’ are of the opinion that the parameter is pure gold. Here’s how to calculate zakat on gold or silver.

Formula: 2.5% x Amount of gold or silver held for 1 year
Case in point:
Mrs Nia has gold 120 grams of (exceeding the nisab) that has been stored for 1 year (reaching the
haul). So, Mrs Nia is already obliged to pay gold zakat. To pay gold zakat using rupiah currency, the
value of the gold must be converted first according to the price of gold on the same day when
someone wants to pay zakat.
The informations:
-Gold price = IDR 1,530,
-Quantity of gold = 120
-Nisab and haul have been reached
-Zakat formula: 2.5% × Amount of gold kept for 1 year
For example, today’s gold price is IDR 1,530,123/gram, then if multiplied by 120 grams the result is
IDR 1,836,147.60-.
If calculated using the gold zakat formula:
2.5% x Rp1,836,147.60 = IDR 4,590,369.
So, Mrs Nia is obliged to pay zakat on gold in the amount of Rp 4,590,369-.
Gold Zakat Intention:
“Nawaitu an ukhrija zakatadz maali fardhan lillahi ta ala.”
Meaning: I intend to pay zakaah on myself for the sake of Allah, may He be exalted.

3. How to Pay Zakat on Gold?

After knowing the intention and provisions, then the next step we will pay it. Zakat can be paid
either in cash or gold directly through official zakat institutions that already have the credibility to
operate. Currently, paying zakat is very easy through online applications or through the website of
zakat institutions.

By understanding the importance of zakat on gold and silver, as well as the nisab and how it is
calculated, every Muslim who has fulfilled the conditions is obliged to pay zakat as a form of
obedience to the command of Allah ﷻ.

Also read: Ramadhan Kareem: Time to Increase Faith and Piety!