Answered by Shaykh Abu Usamah
One scholar told me that we are required to pay zakat on gold or silver jewelry that is worth $1000 or more, aside from jewelry that is worn frequently. Another scholar told me that we only pay zakat on the jewelry that is in EXCESS compared to women on similar status. For example, if I own an amount of jewelry that is NORMAL for women of my status, then I would NOT pay zakat on it, but if I owned MORE than women of my status, then I WOULD pay on the extra jewelry. This is what I understood from their answers. Can someone please clarify this?
Al-Salam alaykum
According to the Hanafi School Zakah is payable on gold and silver jewellery even if it is for use. It has nothing to do with being in excess of the normal amount or $1000 . Yes the condition of the possession of nisab applies in all cases i.e. the total Zakaat-able assets of the person must be equal to or more than the nisab amount (which has to be ascertained from the local ulama.)
Abu Usamah