I was thinking about an important topic that many people ignore—Zakat on gold. Especially when the demand for gold as a safe investment against inflation increases, we must understand the Islamic rulings correctly.

First, Zakat on gold is not optional—it is an obligation upon every Muslim who owns a certain amount of gold. The minimum threshold that makes Zakat obligatory is the Nisab, which is 85 grams of pure gold (24 karat). If you have less than that, then no Zakat is due from you.

As for how to calculate Zakat on gold, the matter is very simple: if your gold reaches the Nisab and a full هجري year passes over it, you give 2.5% of its market value. That means if you have 100 grams of 24-karat gold and the price per gram is 400 riyals, the total value is 40,000 riyals, and Zakat = 40,000 × 2.5% = 1,000 riyals.

But if your gold is of a lower karat, you need to calculate it differently. For example, 21-karat gold contains 87.5% pure gold, and 18-karat contains 75%. So if you have 100 grams of 21-karat gold at the same price, the amount of pure gold is 87.5 grams—meaning the value is 35,000 riyals and the Zakat is 875 riyals.

In a very important point—how to calculate Zakat on gold differs depending on the purpose. If your gold is for saving or investment, Zakat is obligatory at 2.5%. But if it is jewelry for daily adornment, scholars differed: their جمهور said there is no Zakat on it, but the Hanafi school said Zakat is obligatory even on jewelry.

Another thing—Zakat covers all forms of gold: bars, coins, stored jewelry, and even gold investment funds (ETFs) and shares of mining companies. All of this falls under the Zakat obligation.

Regarding timing, Zakat becomes due as soon as one full year is completed—don’t delay it without an excuse. Zakat is paid either in gold or in cash in an amount equivalent to its market value at the time of payment.

The most important thing—Zakat must be distributed to specific categories: the poor, the needy, those employed to collect it, those whose hearts are to be reconciled, the enslaved seeking freedom (mukatab), those in debt (gharim), in the cause of Allah, and the traveler (ibn al-sabil). Don’t give Zakat to anyone outside these categories.

In a final important point—don’t try to evade Zakat by reducing the weight or the price. Allah knows what is in your heart. Zakat is an act of worship above all else; its purpose is to purify wealth and the self and to achieve solidarity among people. So if you have gold and it reaches the Nisab, give your Zakat with a willing heart.