Fatwa ID: 04518

Answered by: Alimah Nasima Umm Hamza

Question:

My question is regarding zakat on gold items. Gold when purchased is expensive and values more than when we go to sell it back when needed. At the time of sale, the value received for gold is not equal to the value invested while purchasing gold. But, I calculate my zakat for gold based on their current rate of gold in the market. What should I do?

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

Zakah will be paid according to its current market value, and not on the price you bought it for.

This is because gold is considered to be from the wealth which grows and which is ready to be traded, therefore it will be paid according to its current value. [1]

Only Allah  Knows Best.

Answered by Alimah Nasima Umm Hamza

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

[1] Al-Marghinani, Al-Hidayah, Book of Zakah, Zakah on Maal, p311