Fatwa ID: 07042
Answered by: Mufti Mohammed Dilwar Hussain
Question:
If a person in Canada has $5420.20, could he purchase 87.479 grams of gold with it?
If not, then could it be said that he possesses the nisab?
In the name of Allāh, the Most Gracious, the Most Merciful
Answer:
The Nisāb is the minimum amount of savings required before the payment of Zakat becomes mandatory on a person.
The Nisāb equivalent in;
Gold- 20 Dinars or 7.5 Tolas or 87.48 grams (Approx. £3,432.72)
Silver-200 Dirhams 52.5 Tolas or 612.36 grams (Approx. £361.29)
Since the era of the Prophet ﷺ the price of silver has drastically fallen whereas the price of gold has risen. Hence, the great difference between the current figures for the Nisāb of gold and silver. [Radd ul-Muhtār; Vol. 3, pg. 224] [1]
The gold price today in Canadian Dollars is $74.91 per gram and silver is priced at 0.89 per gram. [2]
The Nisāb according to the price of gold today would be $6,553.13.
The Nisāb according to the price of silver today would be $545.
If they choose to calculate their Zakat via the price of gold then they would not meet the Nisāb threshold. However, if they calculate their Zakat with the silver equivalent, then they would have wealth which surpasses the Nisāb threshold and thus, eligible to pay Zakat.
The payment of Zakat is compulsory on all those whose wealth which surpasses the Nisāb threshold, as the verse above clarifies. It is a great form of worship with an abundance of rewards attached to it. If they are in a position where they have sufficient disposable income then it would be extremely advisable for them to calculate their Zakat according to the silver threshold and fulfil this Fardh action. However, this is only an advice. Calculating with either the gold or silver equivalents are both valid.
Only Allāh Ta’ālā knows best.
Written by Mufti Mohammed Dilwar Hussain
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
[1]أل فيه للمعهود في حديث (هاتوا ربع عشر أموالكم) فإن المراد به غير السائمة، لأن زكاتها غير مقدرتدة به. (نصاب الذهب عشرون مثقالا والفضة مائتا درهم كل عشرة) دراهم…
[2] https://canadagold.ca/todays-gold-prices-in-canada/
