I recently wondered about the topic of Zakat on gold, especially since many people own gold but don't know exactly how to calculate it. The truth is, this subject is more important than we think.

First, Zakat is one of the fundamental pillars of Islam, and not just a financial obligation. Allah said: "Establish prayer and give Zakat." When we talk specifically about gold, we are discussing one of the oldest forms of wealth. People have used gold for buying, selling, and saving for thousands of years.

The main point: if you own gold and it reaches the legal minimum threshold — which is approximately 85 grams of pure gold — and a full lunar year passes on it, you are obliged to pay Zakat. The percentage is very clear: 2.5% of the value of the gold.

But here comes the important question: how do we actually calculate it? Most people own gold of different karats. 24-karat gold is 100% pure gold. 21-karat — which is the most commonly used in the region — contains 87.5% pure gold. 18-karat contains only 75%.

For example, if you own 100 grams of 21-karat gold and the price per gram of pure gold is 400 riyals, the calculation is simple: 100 grams × 0.875 = 87.5 grams of pure gold. This equals 35,000 riyals. Zakat = 35,000 × 2.5% = 875 riyals.

Regarding calculating Zakat on 21-karat gold specifically, the minimum threshold is about 97 grams because its purity is less than 24-karat. But the method remains the same: convert to pure gold, multiply by the price, then take 2.5%.

It’s important to distinguish between two types of gold: gold for daily adornment, and gold for saving and investment. Jurists say that jewelry used for regular decoration does not have Zakat. But gold stored or purchased with the intention of investment or trade, Zakat is definitely obligatory on it.

Even if you buy gold through investment funds or ETFs, Zakat is due in the same way. Evaluate the gold’s value at the market price when a full lunar year passes, and pay 2.5%.

The final and important point: Zakat is not just a religious duty. It purifies wealth from doubts and increases barakah in it. It helps reduce social disparities. When you pay Zakat with a sincere intention, you contribute to social solidarity and draw closer to Allah.

Summary: calculate the weight of your gold, confirm its karat, convert to pure gold, multiply by the price, take 2.5%, and pay it after a full lunar year. It’s very simple if you know the steps.