When I started to delve into the topic of Zakat, I found that many people do not have enough clarity about Zakat on gold—especially when it comes to calculations and the Nisab. So I decided to share what I learned.

First, the most important thing to understand is that Zakat is not just a financial obligation; it is a great act of worship. The Prophet, peace be upon him, strongly warned against not paying it, saying: “No owner of gold or silver who does not give its due is spared—on the Day of Resurrection, sheets of fire will be laid out for him.” So the matter is serious.

Now the next thing: the Nisab of pure gold is 85 grams of 24-karat. But if you have gold of lower karats, the equation differs a little. For example, the Nisab for 21-karat gold is about 97 grams, because its purity is lower than pure gold. And if you have 18-karat gold, the Nisab comes out to about 113 grams.

The calculation is very simple: once you possess the Nisab and a full Hijri lunar year passes, you give 2.5% of the market value. That means if you have 100 grams of 21-karat gold and the price per gram of pure gold is 400 riyals, the calculation is: 100 × 0.875 (purity ratio) = 87.5 grams of pure gold—so the value is 35,000 riyals, and the Zakat is 875 riyals.

The key point is that the Nisab for 21-karat gold does not differ from others in terms of the ruling in Islamic law; the difference is only in the weight and the calculation. Whether it’s ingots or gold jewelry made for saving, or even investment funds—the ruling is the same.

Something many people don’t know: if you have gold for daily adornment, most scholars say there is no Zakat on it. But if it is for trade or for saving, then Zakat is obligatory. And even men who do not wear gold (because it is forbidden for them)—if they own gold for saving, Zakat is obligatory upon them as well.

The recipients of Zakat are eight categories Allah specified in the Quran: the poor, the needy, those employed to manage it, those whose hearts are to be reconciled, in freeing slaves, the indebted, in the cause of Allah, and the wayfarer. It is not permissible to give it to anyone else—even if they are your relatives—unless they fall under one of these categories.

There’s also a sensitive point: it is not permissible to pay Zakat from unlawful money or money that has any doubt. Delaying it without a valid reason is sinful. Showing off with it is not allowed. In other words, you should give it with a correct intention and for the sake of Allah.

If you have gold investments such as Exchange-Traded Funds (ETFs), these are also included in Zakat. They are subject to Zakat at 2.5% of their market value when a year passes. As for stocks of mining companies, the calculation differs depending on your intention: if they are for speculation, then you pay Zakat on the full value; if they are for long-term investment, then you pay Zakat only on the profits.

In conclusion: the Nisab for 21-karat gold and others is not as complicated as some people think. The idea is to know the correct weight of the Nisab, calculate its market value, and pay 2.5%. Most importantly, give it with a correct intention and do not delay it. This correct understanding reassures you that your Zakat is valid and fulfills its purpose of solidarity and justice.