Zakat on Gold Bullion and Investment Coins

Short answer: Gold bullion and investment coins are subject to zakat. If the total gold reaches the nisab (minimum threshold) and a full lunar year passes, you must pay 2.5% of its value. Details: The obligation of zakat on gold and silver is firmly established in the Qur'an and Sunnah. Surah At-Tawbah (9:34-35) condemns those who hoard gold and silver without paying zakat. The Prophet (peace be upon him) warned of severe punishment for those who do not pay the due on their gold and silver (Sahih Muslim 987a). The nisab for silver is five awaq (200 dirhams) as stated in Sahih al-Bukhari 1447, and by analogy, the nisab for gold is twenty mithqal (approximately 85 grams) derived from other authentic narrations. Once you possess gold (bars, coins, or jewelry) equal to or above this amount and one lunar year elapses, you must pay 2.5% of the gold's current market value. This rate is taken from the established zakat on silver (one quarter of a tenth) as recorded in Sahih al-Bukhari 1454. The zakat can be paid in gold itself or in its value in currency. There is no zakat on gold below the nisab or before one year. Investment gold is treated as savings; the intention of investment does not exempt it from zakat. Evidence: 1) Surah At-Tawbah 9:34-35 – warning against hoarding gold and silver without paying zakat. 2) Sahih Muslim 987a – severe punishment for not paying zakat on gold and silver. 3) Sahih al-Bukhari 1404 – explaining that hoarding includes not paying zakat on gold and silver. 4) Sahih al-Bukhari 1447 – no zakat on less than five awaq of silver (establishes nisab). 5) Sahih al-Bukhari 1454 – the obligatory zakat schedule includes the 2.5% rate for silver, which applies to gold by analogy. Disclaimer: This fatwa is based on the provided evidence; for complex cases involving mixed assets or debts, consult a knowledgeable scholar.