I was wondering, like many people, about the Zakat on my gold, especially since everyone keeps some gold, whether jewelry or savings. The important thing is that I discovered the matter is simpler than I imagined.

First, the Nisab of gold for Zakat is the basic threshold you need to focus on. Specifically, the Nisab of gold in Zakat equals approximately 85 grams of pure gold. That means if you own less than that, you owe no Zakat. But when it reaches 85 grams or more and a full Hijri year passes, then the obligations begin.

The calculation itself is very easy: 2.5% of the market value of the gold. For example, if you have 100 grams of 24-karat gold and its price is 400 riyals per gram, the total value is 40,000 riyals, and the due Zakat is 1,000 riyals. But you must ensure that the gold has been in your possession for a full year to pay the Zakat.

What many people may not realize is that the Nisab for gold in Zakat applies to all forms of gold—bars, coins, even jewelry meant for saving or investment. However, if the jewelry is for daily adornment, there is a scholarly disagreement, but it is safer to also consider Zakat on it.

Different karats have different Nisabs: 24-karat needs 85 grams, 21-karat about 97 grams, and 18-karat approximately 113 grams. The reason is that lower karats contain less pure gold, so you need a greater weight to reach the same amount of pure gold.

Another important point: when calculating Zakat on gold less than 24 karats, multiply the total weight by the purity percentage. For example, 100 grams of 21-karat gold contains 87.5 grams of pure gold (since 21-karat purity is 87.5%), so the Zakat is calculated on 87.5 grams multiplied by the price.

Many people ask: Is investment gold in ETFs or mining company stocks subject to Zakat? Yes, but the method differs slightly. Funds backed by actual gold are Zakatable at 2.5% of their market value. As for mining stocks, Zakat depends on the intention—if for trading, then the full value is Zakatable; if for long-term investment, then only the profits are Zakatable.

The truth is, Zakat is not just a financial obligation; it is primarily an act of worship. The Prophet, peace be upon him, was very strict on this matter and warned against hoarding gold without paying its Zakat. The purpose of Zakat is to purify wealth and promote social solidarity among Muslims.

Finally, Zakat is to be given to specific categories: the poor, the needy, those employed to collect Zakat, those whose hearts are to be reconciled, freeing slaves, those in debt, in the cause of Allah, and travelers. It is not given to others, even if they are relatives, if they are wealthy.

In summary: when you own the Nisab of gold for Zakat and a Hijri year passes, you are obliged to pay 2.5% of its value. The calculation is simple, the purpose noble, and the reward with Allah is great.