Q: How will zakaat be paid on gold and silver?
From Ihyaaud Deen. This entry is part 9 of 37 in the series Zakaat Masaail
A:If a person possesses that amount of gold or silver which equals the nisaab i.e. 87,479g of gold or 612,35g of silver, then zakaat is waajib on him. If he discharges his zakaat from the actual gold and silver, then one fortieth of the gold or silver will be obligatory on him. However, if he discharges his zakaat in value i.e. rands/dollars or any other currency, then two and a half percent of its entire value (market rated value) will be compulsory upon him.
E.g. If a jewellery set is sold in the market for R12, 000, (R10 000 is the value of the entire gold content and an additional R2 000 is on account of the workmanship) then despite the fact that its value in terms of the gold content (in grams) reaches R10, 000, two and a half percent of R12, 000 will be compulsory upon him if he discharges his zakaat in cash.