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I Sell Gold and Diamonds. How to Calculate the Zakat I Owe?

Answered by Ustadh Tabraze Azam

Question: Assalam alaykum

We have a jewellery business in which we sell gold and diamonds. How do we calculate Zakat for the inventory of the store and my wife personal jewellery and her diamonds ?

Answer: Assalamu alaikum wa rahmatullah,

There are two separate considerations here:

(1) the zakat on the trade goods in your possession for your business, and (2) your wife’s personal jewellery collection.

The basis is that trade goods are zakatable. Hence, you would need to calculate and pay zakat upon the current market value of both the gold, diamonds and any other precious metals or otherwise in your possession.

Your wife, however, need only calculate the zakat on her gold as diamonds are not in and of themselves zakatable. This is contrary to silver which is inherently zakatable just like gold.

Please see: Zakat: A Comprehensive SeekersHub Reader

And Allah Most High alone knows best.

[Ustadh] Tabraze Azam

Checked and Approved by Shaykh Faraz Rabbani

Ustadh Tabraze Azam holds a BSc in Computer Science from the University of Leicester, where he also served as the President of the Islamic Society. He memorised the entire Qur’an in his hometown of Ipswich at the tender age of sixteen, and has since studied the Islamic Sciences in traditional settings in the UK, Jordan and Turkey. He is currently pursuing advanced studies in Jordan, where he is presently based with his family.

How to Pay Zakat on Jewelry When not Enough Money is Available?

Answered by Shaykh Ilyas Patel
Question: As salamau alaikum wa rahmatullahi wa barakatuh,
My wife has jewelry. We need to pay zakat on this. 
However, I’d like to know how she is actually to pay the value of this (2.5%) if she doesn’t have any money? She does have some money saved up but it’s been less than a year although she has had the gold for over one year. 
Also, I would like to know if I as her husband can (or indeed must) pay the zakat value of her gold?
Answer: In the name of Allah, Most Compassionate, Most Merciful,
I pray you are well and in good health.
Zakat will be obligatory on her so she can utilise some of the money – she has saved as you have mentioned – to give the zakat. And for the remaining she can do the following:
– sell some part of the jewellery to pay the zakat
– give an item of jewellery itself to the poor
– her husband can give the money to her and then she can use it to give her zakat
I hope this clears the issue.
And Allah knows best
Ilyas Patel

The Wearing of Silk and Jewelry

Answered by Shaykh Faraz Rabbani

Question: I have heard an opinion related to the hadith forbidding gold and silk which states that the reason the Prophet, may peace and mercy of Allah be upon him, forbade us from wearing gold and silk was because they were expensive commodities in that era, as they are now, and that the prohibition is related to wearing things which are very expensive.

Also, since silk is relatively not that expensive now, I have seen men wear silk shirts because they are following the opinion stated above. At the same time, I have seen people wear extremely expensive clothes, is it ok to do so if it is not being done out of riya’?

What is the essence of the hadith, and how shall it be interpreted?

Answer: I’m not aware of a legal position–within mainstream Sunni scholarship–permitting gold or silk for men on the basis of specifying the legal cause of the prohibition being expensiveness.

(Even in the time of the Prophet (Allah bless him and give him peace), where were things more expensive than gold, and clothing more expensive than silk.)

And if that were the case, then why only for men?

As for the “opinions” of those not ascribing to recognized scholarship, “their presence is no more consequential than their absence,” as the scholars would say.

And Allah alone gives success.

Faraz Rabbani