Fatwa ID: 08562

Written by Mufti Sibghat Ullah

Question:

I own a 20 gram bar of gold. I am sahib-e-nisab. I have been paying zakat for this gold based on the price found on this website on this chart: https://www.bullionbypost.co.uk/gold-price/gold-price-chart-gram-gbp/

Will this be considered the market price of gold valid to be used to calculate gold price for zakaat due? I live in Birmingham UK.

2) If not, how should gold price be determined on one’s zakaat date, can I use the retail price of a 20 grams bar found by an online shop, that ships to the UK?

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

Answer:

Zakat is based on the market value at the time of obligation[i]. If the online shop sells at a fair retail market rate, and it’s a price you could realistically buy or sell at in your location, then, you can use that price. BullionByPost is a reputable source and well known in UK and you can use it to check the retail price of gold.

References:

[i] Radd al-Muhtar, Ibn Abidin, Vol 2, Book of zakat, Darul fikr.

يُعتبر في الزكاة قيمة العروض يوم الوجوب

In zakat, the value of assets is considered at the time when zakat becomes obligatory.

Only Allah knows best.

Written by Mufti Sibghat Ullah

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham