Should zakaah on jewellery be based on the price for new gold or used gold?

Dear Brothers & Sisters,
As-Salaamu-Alaikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)
One of our brothers/sisters has asked this question:
In zakat, if I have gold do I go to the jeweller and get my gold valued or do I take the market value of gold? The jeweller will give me a lower value for my personal gold because it is second hand whereas the market value will be higher.
(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)
Check below answers in case you are looking for other related questions:

Praise be to Allaah.

If the gold reaches the minimum threshold at which zakaah becomes due (the nisaab), which is 85 grams, and one full hijri year has passed since it was acquired, then zakaah must be paid on it, by giving one quarter of one tenth of it, or of its value. What is meant by its value is the price for which it would be sold used at the time when zakaah is due. This is usually less than the price for new gold. 

Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) said: Based on this, a woman should work out the value of the gold that she has, whether that is the price for which she bought it or less, or more, so she should work out its value as used gold then pay one quarter of one tenth, i.e., one in forty, or two and a half riyals out of every hundred, or twenty five out of every thousand, and so on. The way to do that is to divide the value by forty, and the result is what is to be paid in zakaah. In this manner she will discharge her duty and be ransomed from the punishment of the Fire, and nothing will harm her. 

He was asked: Is the zakaah of jewellery based on the purchase price or the price each year at the time when zakaah is paid? 

He replied:  Zakaah on jewellery must be paid each year and cannot be based on the purchase price, rather it must be based on the price when the full year has passed. If a woman buys gold for ten thousand riyals, and when the year has passed it is only worth five thousand riyals, then she should only pay zakaah on five thousand riyals. The converse is also true: if she buys gold for five thousand riyals then when the year has passed it is now worth ten thousand riyals, then she should pay zakaah on ten thousand riyals, because that is the time when zakaah becomes obligatory. And Allaah is the Source of strength. 

From Majmoo’ Fataawa Shaykh Ibn ‘Uthaymeen, vol. 18, question no. 18, 58. 

And Allaah knows best.

Whatever written of Truth and benefit is only due to Allah's Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Related Answers:

Recommended answers for you: