Zakat on Gold: Weight or Market Value?

Short answer: You may pay zakat on gold either by giving 2.5% of its weight (i.e., gold itself) or by giving its market value in cash. Both are acceptable, but the evidence shows that the obligation is based on value, and paying the value is permissible. Details: The primary texts (e.g., Sahih Muslim 987a, Sahih al-Bukhari 1454) establish that zakat is obligatory on gold and silver when they reach the nisab (minimum threshold), and the rate is 2.5%. The nisab for gold is 20 dinars (approximately 85 grams) – see Sahih al-Bukhari 1404 which mentions the principle of nisab for gold and silver. The actual obligation is on the weight, but the method of payment can be by kind or by value. In Sahih al-Bukhari 1448 (P5), Mu'adh (RA) accepted clothes (value) instead of barley for zakat, showing that value substitution is permitted when it benefits the recipients. Similarly, in Sahih al-Bukhari 1422 (P10), gold coins are given as zakat, and the Prophetic practice was to receive gold and silver by weight. The majority of scholars (including Ibn Baz, al-Uthaymin, Permanent Committee) hold that one may pay the market value in cash, especially if it is more convenient or beneficial to the poor. The evidence-weighted position is that both methods are valid: you may give 2.5% of the gold’s weight (if you have gold) or an equivalent cash value. However, if you have gold coins or jewelry, paying the weight in gold is the original sunnah, but paying the value is an established alternative. If you pay by value, ensure it is based on the current market price at the time of payment. Evidence: 1. Sahih Muslim 987a – Obligation of zakat on gold and silver; punishment for non-payment. 2. Sahih al-Bukhari 1454 – Zakat rates and nisab for gold and silver. 3. Sahih al-Bukhari 1404 – Nisab for gold (5 uqiya = 200 dirhams; gold nisab is 20 dinars). 4. Sahih al-Bukhari 1448 – Mu'adh accepted clothes (value) for zakat on grains; shows substitution allowed. 5. Sahih al-Bukhari 1422 – Gold coins given as zakat; practice of paying by kind or value. Disclaimer: This fatwa is based on the provided evidence. For complex cases (e.g., mixed assets, multiple currencies), consult a knowledgeable scholar.