March 22, 2024
Nisab for Zakat on Gold and Silver, what is it?

Islamic Values


5 min read

A scale with gold and silver coins being weighed

Nisab for Zakat on Gold and Silver:

The concept of Nisab stands at the heart of the Zakat calculation, serving as the threshold that determines Zakat eligibility. In Islamic finance, Nisab is defined as the minimum amount of wealth (in the form of gold, silver, or equivalent currency) a Muslim must possess before being obligated to pay Zakat. This benchmark ensures that Zakat is only paid by those with sufficient financial stability, embodying the principles of fairness and responsibility.

Determining the current Nisab values for both gold and silver is a key aspect of Zakat compliance. Traditionally, the Nisab for gold is set at 20 Dinar (equivalent to approximately 85 grams of gold), while for silver, it is 200 Dirhams (equivalent to approximately 595 grams of silver). There are other perspectives on the modern weightage of these amounts, however the majority have settled on the above approximation, after looking at coinage from the Islamic world throughout history, and approximating the median weight of these coins.

These values, however, are subject to fluctuation based on current market prices. Thus, a regular update of these values is essential for accurate Zakat calculation. Below we’ve provided a real-time updates on Nisab values, to cater to the needs of the global Muslim community.

The calculation methods for determining Nisab can vary when considering gold and silver. While some scholars advocate using the value of silver as a basis for calculating Nisab due to its lower threshold, thereby encompassing a broader range of individuals in Zakat obligation, others prefer gold as a more stable standard. This difference in approach reflects the dynamic nature of Islamic jurisprudence and its adaptation to contemporary economic contexts. My personal position is to use silver in all instances, as it was the most common currency during the Prophet’s life, it is the lower of the two amounts so more people will pay Zakat, and because of that more people will fulfill a pillar of Islam and the poor and needy will benefit more from people giving. 

To make this process easier, I’ve created a widget that you can refer to see the Nisab according to the two major positions on how to calculate it. Select the position you take, and the widget will calculate the Nisab for you on the day that you use it, giving both gold and silver amounts.

Zakat on Gold, Silver, & Jewelry:

The treatment of gold and silver in Zakat calculation requires a nuanced understanding, especially when distinguishing between these precious metals as forms of currency versus personal jewelry. Traditionally, gold and silver, when used as monetary assets, unequivocally attract Zakat. However, the application of Zakat on gold and silver jewelry, items often intertwined with personal use and cultural significance, varies based on scholarly interpretations and juristic schools of thought within Islam, as mentioned above.
The view that I adhere to is that Zakat is due on all gold and silver jewelry if it meets or exceeds the Nisab threshold, irrespective of whether it is used for personal adornment or saved as an investment. This perspective aligns with the principle that wealth in all its forms, if over the Nisab and held for a lunar year, is subject to Zakat. Given that these items are liquid and can easily be sold, regardless of their sentimental value, strengthens this position in my view. However, as mentioned above, some schools of thought exempt personal jewelry from Zakat, emphasizing the importance of intent and usage in determining Zakat liability.

Calculation Methods for Zakat on Gold and Silver Jewelry:

The process of calculating Zakat on gold and silver jewelry is a critical aspect of Islamic wealth management, combining religious mandates with practical financial considerations. This section provides a step-by-step guide, incorporating both gold and silver, to assist in accurate Zakat calculation.

Step-by-Step Calculation for Zakat on Gold:

  1. Determine the Current Nisab: Establish the current Nisab threshold for gold, typically based on the market price of 85 grams of gold.
  2. Assess Your Gold: Calculate the total weight of gold you own, including jewelry, coins, or bars.
  3. Market Value Assessment: Evaluate the current market value of your gold, ensuring to use the latest prices.
  4. Apply the Zakat Rate: Zakat is generally calculated at 2.5% of the total value exceeding the Nisab.

Example Calculation for Gold: For 100 grams of gold owned, calculate the value based on current market rates and apply 2.5% if above Nisab.

Step-by-Step Calculation for Zakat on Silver:

  1. Establish Silver Nisab: Determine the Nisab for silver, usually the price of 595 grams of silver.
  2. Total Silver Weight: Sum up the weight of all silver assets, including jewelry and utensils.
  3. Current Market Value: Check the latest market price for silver and calculate its total value.
  4. Calculate Zakat: Apply the standard 2.5% rate to the value above the Nisab threshold.

Example Calculation for silver: Inherited Silver Jewelry: Assess the total weight of inherited silver, determine its market value, and apply the Zakat rate if it exceeds Nisab.


In summary, Zakat is not just a religious requirement; it’s a meaningful way for Muslims to help others and improve society. This guide to calculating Zakat on gold and silver shows how Islamic teachings blend seamlessly with today’s financial practices. Understanding Nisab and its changing market values, and figuring out how Zakat applies to different kinds of gold and silver, requires careful attention to both religious rules and practical money matters.
Overall, this guide reflects Islam’s comprehensive approach to handling wealth, which balances religious, ethical, and financial considerations. It’s a powerful reminder of how coming together to manage resources can make a real difference in communities, staying true to the Islamic values of kindness and generosity. Zakat is a keyway Muslims around the world show their commitment to taking care of each other and making a positive impact on society.


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