I have noticed that many people ask about the zakat on gold, especially those who have jewelry or gold investments. The topic is simpler than some imagine, but it’s important to understand the rulings correctly.

First, zakat on gold is obligatory for anyone who owns a certain minimum amount and has had it for a full lunar year. The legal minimum (nisab) is approximately 85 grams of pure gold, and the due zakat is 2.5% of its market value. This applies to all types of gold, whether bars, jewelry kept for savings, or even investment funds.

The important point: zakat on 21-karat gold is calculated based on the purity percentage. 21-karat gold contains 87.5% pure gold, meaning the nisab for it is about 97 grams. If you have 100 grams of 21-karat gold, multiply the weight by 0.875 to get the actual amount of pure gold, then calculate 2.5% of its market value.

There is an important difference between jewelry used for daily adornment and stored or investment gold. The majority of scholars say daily jewelry does not have zakat, but stored or purchased gold for investment definitely does. If you own 21-karat or 18-karat gold for savings, the same ruling applies.

A practical example: if you have 100 grams of 21-karat gold and the price per gram of pure gold is 400 riyals, your actual pure gold = 100 × 0.875 = 87.5 grams = 35,000 riyals, and the due zakat = 35,000 × 2.5% = 875 riyals.

The basic conditions are simple: be sane, own the nisab, and have completed a full lunar year. When these conditions are met, zakat becomes obligatory immediately and cannot be delayed.

Zakat on 21-karat gold and other types is to be given to the eight categories mentioned in the Quran: the poor, the needy, those employed to collect it, those whose hearts are to be reconciled, freeing slaves, those in debt, in the cause of Allah, and the traveler. It is not permissible to give it to other than these categories.

The final point: zakat is not limited to physical gold only. If you have gold investment funds or mining stocks, these also have zakat in the same way. The important thing is to calculate it correctly and pay it on time.