Zakat on Gold Savings
The question of Zakat on gold savings affects many Muslims who hold physical gold as wealth preservation, investment, or financial security. Do you pay Zakat on gold bars stored in bank vaults? What about gold coins like Sovereigns, Krugerrands, or American Gold Eagles? How do you calculate Zakat on bullion with different purities? What is the exact nisab threshold in grams for gold savings? Do allocated gold accounts require Zakat like physical possession? How do you value gold for Zakat when prices fluctuate daily? What about gold certificates or unallocated gold holdings? Should you combine gold savings with gold jewelry for nisab calculation? This comprehensive guide answers every question about Zakat on gold savings with complete clarity for Muslims managing gold wealth.
The critical truth about Zakat on gold savings is this: all gold held as savings, investment, or wealth preservation is zakatable at 2.5% of current market value annually when you possess 87.48 grams or more of pure gold for one complete lunar year. Unlike gold jewelry where scholars differ on personal adornment exemptions, there is complete scholarly consensus that gold saved as bullion, bars, coins, or investment holdings requires Zakat without exception. This guide explains exactly how to calculate pure gold content across different purities and forms, determine current market value accurately, apply the 87.48 gram nisab threshold, handle different storage arrangements from home safes to bank vaults, and fulfill Zakat obligations on gold savings backed by authentic Quranic and Hadith evidence.
Critical certainty: Gold savings are definitively zakatable with complete scholarly consensus
Unlike gold jewelry where scholars differ on whether personal adornment pieces are zakatable, there is absolute unanimous agreement across all Islamic schools of jurisprudence that gold held as savings, investment, or wealth storage requires Zakat. Physical gold bars, gold coins, gold bullion, and any gold owned for financial purposes rather than wearing is zakatable wealth subject to the 2.5% annual Zakat rate. This consensus makes Zakat on gold savings straightforward without the complexity of distinguishing personal use from investment that applies to jewelry.
Whether you own one gold bar or one hundred, whether your gold is stored at home or in a bank vault, whether you purchased it last month or decades ago, the obligation is identical: when your total pure gold exceeds 87.48 grams and you have possessed it for one complete lunar year, calculate Zakat at 2.5% of current gold market value and pay it to eligible recipients. This guide provides the complete methodology for fulfilling this clear obligation on gold savings with accuracy and confidence.
Gold investment
Types of gold savings and their Zakat treatment
Physical gold bars, coins, bullion, and other forms of gold wealth.
Physical gold bars and bullion
Gold bars are the most common form of gold savings for serious investors. Bars range from small one gram pieces to large one kilogram or even larger institutional bars. Standard sizes include one ounce bars containing 31.1 grams, ten ounce bars, and one kilogram bars containing 1000 grams. Gold bars are typically 24 karat pure gold or 99.99% purity, though some bars may be 22 karat or other purities. For Zakat on gold savings, gold bars are definitively zakatable regardless of size, purity, or manufacturer.
Calculate Zakat on gold bars by determining total pure gold content. If bars are 24k pure gold, the weight stamped on the bar is the pure gold content. A 100 gram 24k bar contains 100 grams pure gold. If bars are 22k, multiply weight by 91.67% purity to get pure gold. Sum the pure gold from all bars you own, compare to the 87.48 gram nisab threshold, and calculate 2.5% Zakat on current gold market value if above nisab. Major refiners producing bars include PAMP Suisse, Credit Suisse, Royal Canadian Mint, Perth Mint, and Valcambi. All are zakatable identically for Zakat on gold savings.
Gold coins as savings and investment
Gold coins are popular for gold savings because they are divisible, widely recognized, and easy to authenticate. Common investment gold coins include British Sovereigns containing 7.32 grams pure gold each, Krugerrands containing 31.1 grams pure gold, Britannias containing 31.1 grams pure gold, American Gold Eagles containing 31.1 grams pure gold, Canadian Gold Maple Leafs containing 31.1 grams pure gold, and various other sovereign-minted coins. For Zakat on gold savings, all gold coins held for investment require Zakat calculation.
Calculate Zakat on gold coins by multiplying number of coins by pure gold content per coin. If you own twenty Sovereigns at 7.32 grams each, you have 146.4 grams pure gold total. If you own five Krugerrands at 31.1 grams each, you have 155.5 grams pure gold. Combine all gold coins with any bars and other gold holdings to determine total pure gold for Zakat on gold savings. Some coins have numismatic or collectible value exceeding their gold content value. For Zakat purposes, most scholars say use the higher of gold content value or market value to ensure proper wealth assessment.
The 87.48 gram nisab threshold for gold
The nisab for gold is precisely 87.48 grams of pure gold, which equals twenty Islamic dinars at 4.374 grams per dinar. This threshold applies to all gold wealth including savings, jewelry, and any other form. For Zakat on gold savings specifically, if you own less than 87.48 grams total pure gold, no Zakat is due. At exactly 87.48 grams or above, Zakat becomes obligatory at 2.5% annually if you have possessed this amount continuously for one lunar year of approximately 354 days. Twelve British Sovereigns contain 87.84 grams pure gold, just exceeding nisab. Three Krugerrands contain 93.3 grams, well above nisab.
Gold stored in different locations
Muslims save gold in various storage arrangements. Some keep gold at home in personal safes providing immediate access but requiring security measures. Others use bank safe deposit boxes offering bank vault security with access during banking hours. Specialized gold storage companies like BullionVault, GoldMoney, or Swiss vaults provide professional allocated storage where you own specific identified bars. For Zakat on gold savings, storage location is completely irrelevant to the obligation. Gold is zakatable wherever it is stored as long as you own it.
The key factor for Zakat on gold savings is ownership and possession, not physical location. If you own gold stored in a Swiss vault that you can access on demand, it is your wealth requiring Zakat. If you own gold in a home safe, same obligation. If you own gold in a bank safe deposit box, same obligation. The ease or difficulty of physical access does not change zakatable status. As long as you legally own the gold and could access it if needed, it is possessed wealth subject to annual 2.5% Zakat when above nisab for one year.
Calculation method
How to calculate Zakat on gold savings step by step
Complete methodology for determining pure gold content and Zakat obligation.
Step one: Inventory all gold savings holdings
Begin calculating Zakat on gold savings by creating a complete inventory of all gold you own for investment or savings purposes. List all gold bars with their weights and purities. Count all gold coins by type and quantity. Include any gold bullion, gold rounds, or other gold products. Check all storage locations including home safes, bank safe deposit boxes, vault storage, and allocated gold accounts. Ensure nothing is overlooked. Many people store gold in multiple locations and may forget pieces when calculating Zakat on gold savings.
For each gold holding, record the weight and karat purity. Gold bars usually have this information stamped on them. Gold coins have standard weights and purities that can be verified against coin specifications. If you have gold with uncertain purity, consider professional testing or appraisal to determine accurate gold content for Zakat on gold savings calculation. The goal is knowing exactly how much gold you own so you can calculate pure gold content accurately.
Step two: Calculate pure gold content
Pure gold content determines your Zakat on gold savings obligation. If you own 24 karat gold which is 100% pure, the weight equals pure gold content. A 100 gram 24k bar contains 100 grams pure gold. Most gold bars are 24k or very close. If you own 22 karat gold which is 91.67% pure, multiply total weight by 0.9167 to get pure gold. If you have 100 grams of 22k gold, pure content is 91.67 grams. If you own 21 karat at 87.5% purity, multiply weight by 0.875.
For gold coins, use the specified pure gold content per coin. British Sovereigns are 22k gold weighing 7.988 grams total with 7.32 grams pure gold. Krugerrands are 22k weighing 33.93 grams total with 31.1 grams pure gold. Modern Britannias and Maple Leafs are 24k with 31.1 grams pure gold. American Gold Eagles are 22k with 31.1 grams pure gold despite higher total weight due to added metals. Calculate pure gold from all holdings, then sum to get total pure gold for Zakat on gold savings.
Step three: Compare to nisab threshold
Once you know your total pure gold content in grams, compare to the 87.48 gram nisab threshold. If your total is less than 87.48 grams, no Zakat is due this year regardless of gold value. You are below the minimum wealth threshold requiring Zakat on gold savings. If you own exactly 87.48 grams or more, and you have possessed this amount or more continuously for one complete lunar year, Zakat becomes obligatory. The lunar year is approximately 354 days, shorter than the solar calendar year.
Track when you first crossed the nisab threshold. If you purchased gold gradually and only reached 87.48 grams six months ago, your hawl has not yet completed. You must wait until you have maintained wealth above nisab for the full lunar year before Zakat becomes due. If you crossed nisab three years ago and maintained gold savings above it continuously since then, Zakat has been due annually. For Zakat on gold savings, the hawl requirement ensures only established wealth is zakatable, not recently acquired assets.
Step four: Determine current gold market value
Gold prices fluctuate constantly based on global markets. On your annual Zakat date, check the current gold spot price in your currency. Gold is typically quoted per troy ounce which equals 31.1 grams, or per gram in some markets. Convert to per gram pricing if needed. If gold trades at 1600 pounds per ounce, divide by 31.1 to get approximately 51.45 pounds per gram. Multiply your total pure gold grams by current price per gram. If you own 120 grams pure gold at 51.45 pounds per gram, your gold savings value is 6174 pounds. This is your zakatable gold wealth for Zakat on gold savings.
Step five: Calculate 2.5% Zakat on gold value
The final step for Zakat on gold savings is calculating 2.5% of your gold's current value. Using the example of 6174 pounds, multiply by 0.025 to get 154.35 pounds Zakat due. This Zakat obligation on your gold savings is then combined with Zakat on any other wealth you own including cash, investments, and other zakatable assets for your complete annual Zakat payment. You do not pay separate Zakat on gold and separate Zakat on other wealth. Everything combines into one total wealth assessment with one 2.5% Zakat payment.
Alternatively, you can calculate Zakat on gold savings by weight rather than value. Take 2.5% of your pure gold grams. If you own 120 grams, Zakat is 3 grams of gold. You can physically give 3 grams of gold to Zakat recipients, or sell 3 grams and give the cash, or keep your gold and pay cash equivalent to 3 grams' value. All three approaches fulfill the obligation. Most people pay cash equivalent for convenience, but giving gold itself is permissible for Zakat on gold savings.
Include all wealth
Calculate Zakat on gold savings and all other assets
Combine gold with cash, investments, and other wealth in one annual calculation.
Calculate Your Zakat →Special cases
Special gold holdings and their Zakat treatment
Allocated accounts, gold certificates, ETFs, and other gold investment structures.
Allocated gold storage and accounts
Allocated gold means you own specific identified gold bars stored on your behalf by a vault or storage company. Companies like BullionVault, GoldMoney, and various Swiss vault services offer allocated storage where your gold is segregated and individually identified. You own the actual gold bars even though the storage company holds them physically. For Zakat on gold savings, allocated gold is treated identically to gold you store yourself at home. It is your owned physical gold requiring Zakat at 2.5% annually.
Calculate Zakat on allocated gold by checking your account statements showing the weight and purity of gold you own. The storage company should provide this information clearly. Determine pure gold content, compare to nisab, and calculate Zakat on current gold value. The fact that a third party stores the gold does not reduce your ownership or Zakat obligation. Allocated gold provides the security benefits of professional vault storage while maintaining the Zakat characteristics of direct physical gold ownership.
Unallocated gold accounts and gold certificates
Unallocated gold accounts give you ownership of a certain weight of gold without owning specific identified bars. You have a claim to gold from the institution's general gold holdings, similar to how bank deposits give you a claim to currency without specific identified notes. Gold certificates are paper or digital certificates representing gold ownership without physical delivery. For Zakat on gold savings, unallocated accounts and certificates are more complex than allocated or physical gold.
Most Islamic scholars treat unallocated gold as a debt owed to you by the institution, making it zakatable. You calculate Zakat on the gold weight your certificate or account represents using current gold values. Some scholars distinguish between certificates that can be redeemed for physical gold on demand versus those that are merely paper claims. Generally, if you can demand physical delivery of gold, the obligation is clearer. For Zakat on gold savings through unallocated accounts, the safest approach is treating the gold value as zakatable wealth requiring 2.5% Zakat annually.
Gold ETFs and gold mining stocks
Gold ETFs like SPDR Gold Shares or iShares Gold Trust hold physical gold bullion and issue shares representing fractional ownership. When you buy gold ETF shares, you own a claim to the gold held by the fund. For Zakat on gold savings purposes, most scholars treat gold ETF shares as zakatable at the current share value which represents the underlying gold value. Calculate Zakat at 2.5% on the market value of your ETF shares on your Zakat date.
Gold mining stocks are different from gold savings or gold ETFs. Mining stocks are equity investments in companies that mine gold, not ownership of physical gold itself. Mining stocks are zakatable as regular stock investments based on share market value, not as gold savings. The distinction is important: physical gold and gold ETFs backed by physical gold are zakatable as gold wealth, while mining company shares are zakatable as general equity investments following stock Zakat rules. Learn more in our Stock Zakat guide.
Digital gold and fintech gold products
Modern fintech companies offer digital gold where you buy fractions of grams through mobile apps with the gold stored in vaults. Examples include Paxos Gold, Glint, and various digital gold platforms. These products typically use allocated or semi-allocated storage where actual physical gold backs your holdings. For Zakat on gold savings, treat digital gold platforms like allocated gold storage. Your account shows the gold weight you own, which is zakatable at 2.5% of current value when combined with other gold holdings it exceeds 87.48 grams nisab for one year.
Gold held in different countries and currencies
Some Muslims own gold stored in multiple countries or purchased in different currencies. You might have gold in a UK bank vault, gold in a Swiss facility, and gold stored at home. For Zakat on gold savings, combine all gold holdings regardless of location or purchase currency. Convert everything to pure gold grams, sum the total, compare to the 87.48 gram nisab, and calculate Zakat on total gold value converted to your home currency on your Zakat date.
Currency fluctuations affect the value in your home currency but do not change the pure gold weight. If you own 100 grams of gold whether purchased with pounds, dollars, euros, or any currency, it is 100 grams requiring Zakat calculation at current gold price in your currency. The physical gold weight determines nisab comparison while current local gold price determines Zakat value for payment purposes in Zakat on gold savings.
Distinction
Gold savings versus gold jewelry for Zakat
Understanding when to combine gold holdings and when to separate them.
Investment gold always combines with savings
For Zakat on gold savings calculation, you must combine all investment gold regardless of form. If you own 50 grams in gold bars, 30 grams in Sovereign coins, and 40 grams in unworn gold jewelry kept as investment, sum all three to get 120 grams total pure gold for nisab comparison and Zakat calculation. Investment gold jewelry is functionally equivalent to gold bars or coins for Zakat purposes because it is held for wealth preservation rather than adornment use.
The key test is whether gold serves adornment function or wealth storage function. Gold bars and coins obviously serve only wealth storage, so they are definitively zakatable gold savings. Gold jewelry that is never worn, kept in vaults, or held in excessive amounts beyond realistic adornment needs serves wealth storage function and should be combined with gold savings for Zakat calculation. Only gold jewelry genuinely worn regularly for permitted adornment might be exempted under majority scholarly opinion, and even this is debated.
Personal adornment jewelry exemption is debated
The majority of Islamic scholars including the Maliki, Shafi, and Hanbali schools permit exempting gold jewelry genuinely worn for personal adornment by women from Zakat. Under this position, if you own 60 grams of gold bars as savings plus 40 grams of gold jewelry you regularly wear for adornment, you would only count the 60 grams of gold savings toward nisab. Since this is below 87.48 grams, no Zakat would be due. However, the Hanafi school has difference on this, and the Zahiri school says all gold is zakatable including personal jewelry.
For Zakat on gold savings specifically, the safest approach is combining all gold including personal jewelry to ensure complete obligation fulfillment. If you want to follow the majority position exempting genuinely worn adornment, be honest about which jewelry truly serves that function versus which pieces are effectively investment gold. Many contemporary scholars note that in modern times, women may own substantial jewelry collections where only a portion is actually worn, making the distinction between personal use and investment relevant even for jewelry. Our Gold Jewelry Zakat guide explains this thoroughly.
Practical approach to combining gold holdings
Most Muslims own gold in mixed forms: some clear investment gold like bars and coins, some clear personal adornment jewelry regularly worn, and some borderline jewelry occasionally worn or kept for sentimental reasons. For Zakat on gold savings, combine the definite investment gold from bars and coins with any jewelry not genuinely worn for adornment. If the combined total exceeds 87.48 grams nisab, calculate Zakat on that total. If you want to be more cautious and ensure complete Zakat fulfillment, include all gold regardless of use and pay Zakat on the full amount following the stricter scholarly position.
Complete annual Zakat
Calculate Zakat on all your wealth including gold
Include gold savings, cash, investments, and other assets in one calculation.
Use Zakat Calculator →Real situations
Detailed examples of Zakat on gold savings calculation
Step by step scenarios showing how Muslims calculate Zakat on gold holdings.
Investor with mixed gold bars and coins
Background: Tariq is a British Muslim who saves in physical gold for financial security and inflation protection. He owns various gold bars and coins accumulated over five years. His annual Zakat date is 1st Ramadan and he wants to calculate Zakat on gold savings correctly.
Gold holdings inventory: Three 100 gram gold bars of 24k purity from PAMP Suisse totaling 300 grams pure gold. Ten British Sovereigns at 7.32 grams pure gold each totaling 73.2 grams. Five Krugerrands at 31.1 grams pure gold each totaling 155.5 grams. Two Britannias at 31.1 grams pure gold each totaling 62.2 grams.
Total pure gold calculation: Gold bars 300 grams plus Sovereigns 73.2 grams plus Krugerrands 155.5 grams plus Britannias 62.2 grams equals 590.9 grams total pure gold. This substantially exceeds the 87.48 gram nisab threshold.
Current gold value: On his Zakat date, gold trades at £52 per gram. Total gold savings value: 590.9 grams times £52 equals £30,726.80.
Zakat calculation: £30,726.80 times 2.5% equals £768.17. Tariq rounds to £768 Zakat on gold savings. He combines this with Zakat on £12,400 in cash savings and £8,600 in halal stock investments for complete annual Zakat of approximately £1,295 total.
Key insight about Zakat on gold savings: Tariq correctly combined all forms of investment gold including bars and multiple coin types. He calculated pure gold content from each holding, summed the total, and used current gold prices on his Zakat date for accurate valuation. The mixed holdings are treated identically as zakatable gold savings.
Woman with gold savings in vault storage plus personal jewelry
Background: Aisha stores gold in an allocated vault account with BullionVault for security while also owning some gold jewelry. She wants to understand which gold requires Zakat on gold savings calculation and which might be exempt.
Allocated vault storage: Aisha's BullionVault account shows she owns 145.6 grams of allocated 24k gold bars stored in London vault. This gold is specifically identified as hers even though physically stored by the company.
Personal jewelry holdings: Aisha also owns 35 grams of 22k gold jewelry that she wears regularly for personal adornment including wedding ring, daily necklace, and earrings. Pure gold content: 35 times 0.9167 equals 32.08 grams.
Categorization decision: The 145.6 grams in vault storage is definitively zakatable gold savings. The 32.08 grams of genuinely worn personal jewelry is potentially exempt under majority scholarly opinion. Aisha must decide whether to follow the exemption or pay Zakat on all gold for maximum caution.
Calculation following majority position: Using only the vault gold: 145.6 grams exceeds 87.48 gram nisab. Gold price £50 per gram. Value: £7,280. Zakat at 2.5%: £182.
Calculation following stricter position: Combining all gold: 145.6 plus 32.08 equals 177.68 grams total. Value at £50 per gram: £8,884. Zakat at 2.5%: £222.10.
Aisha's decision: She chooses the stricter position for spiritual peace of mind, paying £222 Zakat on all gold including personal jewelry despite the majority scholarly exemption. This ensures complete certainty of obligation fulfillment.
Key insight about Zakat on gold savings: Allocated vault storage is treated identically to physical possession for Zakat purposes. The scholarly difference on personal jewelry creates choice points where Muslims can follow majority exemption or stricter inclusion based on their preference for certainty.
Family gradually accumulating gold reaching nisab threshold
Background: The Hassan family purchases small amounts of gold regularly as savings. They started three years ago buying one Sovereign per month. They want to understand when their Zakat on gold savings obligation began.
Gold accumulation pattern: The family bought one Sovereign monthly at 7.32 grams pure gold each. After twelve months, they owned twelve Sovereigns totaling 87.84 grams pure gold, just exceeding the 87.48 gram nisab threshold. They have continued buying and now own forty Sovereigns totaling 292.8 grams pure gold after three years.
When Zakat became due: The Zakat obligation began one lunar year after they crossed nisab, which occurred after their twelfth Sovereign purchase. Their first Zakat payment was due approximately one year and two weeks later (accounting for lunar year being shorter than solar year). They have now paid Zakat twice with a third payment due.
Current Zakat calculation: They own forty Sovereigns totaling 292.8 grams pure gold. Gold trading at £51.50 per gram. Total value: £15,079.20. Zakat at 2.5%: £376.98, rounded to £377.
Growth despite Zakat payments: The family has paid approximately £650 in combined Zakat over two previous years but their gold holdings still grew from twelve to forty Sovereigns through continued purchases. The annual Zakat payments purify their growing wealth while allowing continued gold savings accumulation.
Key insight about Zakat on gold savings: The hawl begins when you first cross nisab, not when you started buying gold. Gradual gold accumulation requires tracking when you exceeded 87.48 grams to determine when Zakat obligations began. Continued purchases and gold appreciation can cause holdings to grow despite annual Zakat payments.
Investor selling gold and realizing gains during the year
Background: Omar owns substantial gold savings and sold some holdings mid-year to take profits. He wants to understand how the sale affects Zakat on gold savings calculation.
Gold holdings at year start: Omar owned 500 grams of pure gold in various bars and coins on his previous Zakat date.
Sale during the year: Six months into his Zakat year, Omar sold 150 grams of gold when prices were favorable. He purchased the gold originally for £45 per gram (£6,750 total investment) and sold at £53 per gram receiving £7,950. His capital gain was £1,200.
Gold holdings on current Zakat date: Omar owns 350 grams of pure gold remaining from his original holdings. Current gold price on his Zakat date is £49 per gram. Current gold savings value: 350 times £49 equals £17,150.
Cash from gold sale: The £7,950 from selling gold is now cash in Omar's account. This cash is zakatable separately from remaining gold holdings.
Complete Zakat calculation: Remaining gold value £17,150 plus cash from sale £7,950 plus other savings £8,200 equals total wealth £33,300. Zakat at 2.5%: £832.50.
Key insight about Zakat on gold savings: Selling gold during the year does not trigger separate Zakat at the moment of sale. The proceeds become cash included in your annual Zakat date wealth assessment. The capital gain is zakatable as part of current wealth but does not require special treatment. The annual assessment method handles gold sales and purchases throughout the year automatically.
Complete your obligation
Calculate accurate Zakat on all your wealth including gold
Include gold savings, cash, investments, and all assets in one comprehensive calculation.
Calculate Zakat Now →Islamic evidence
Quran and Sahih Hadith on gold and wealth purification
Authentic textual sources establishing Zakat obligations on gold savings.
Quran
Those who hoard gold and silver
Quran 9:34
Allah warns those who hoard gold and silver without giving Zakat. This verse directly addresses gold savings and establishes the obligation to purify gold wealth through Zakat. Gold saved as bars, coins, or bullion clearly falls under this warning if Zakat is not paid on it annually.
Quran
On the Day when it will be heated in Hellfire
Quran 9:35
Allah describes severe punishment for gold and silver not purified through Zakat. This continuation of the previous verse emphasizes the seriousness of Zakat on gold savings. The gold itself will be used in punishment for those who neglected this obligation, demonstrating the gravity of gold Zakat.
Quran
Give from what We provided you
Quran 2:267
Allah instructs giving from good things provided. Gold savings represent substantial provision requiring purification through Zakat. Whether accumulated through purchase, inheritance, or gifts, gold wealth must have 2.5% given annually to fulfill this command.
Quran
In their wealth is a determined right
Quran 51:19
Allah establishes specific rights in wealth for those in need. Gold savings exceeding nisab contain these determined rights requiring fulfillment through Zakat. The obligation is not optional charity but a fixed right that must be paid from gold wealth annually.
Hadith
No Zakat on less than twenty dinars of gold
Sunan Abu Dawud 1573
The Prophet (peace be upon him) established nisab for gold at twenty dinars equivalent to 87.48 grams pure gold. This hadith directly specifies the threshold for Zakat on gold savings. Gold below this amount is exempt, while gold at or above requires 2.5% Zakat annually.
Hadith
Gold and silver not given Zakat will be heated
Sahih Muslim 987
The Prophet (peace be upon him) warned that gold and silver on which Zakat was not paid will be made into plates of fire in the Hereafter. This severe warning applies directly to gold savings. Those who possess zakatable gold must calculate and pay the 2.5% Zakat to avoid this consequence.
Hadith
Whoever possesses gold should calculate its Zakat
Sahih al-Bukhari 1454
The Prophet (peace be upon him) instructed that whoever has gold must determine Zakat on it. This hadith establishes the obligation to actively calculate Zakat on gold savings rather than passively hoping to fulfill obligations. Gold owners must weigh their holdings, compare to nisab, and compute the 2.5% payment.
Hadith
Purify your wealth through Zakat
Sahih Muslim 987b
Zakat purifies and blesses wealth according to the Prophet's (peace be upon him) teaching. Gold savings require this annual purification through 2.5% Zakat payment. The purification makes remaining wealth blessed and lawful while fulfilling obligations to those in need through Zakat distribution.
Complete scholarly consensus on gold savings Zakat
Unlike the scholarly difference on gold jewelry where personal adornment exemption is debated, all Islamic scholars across all four major schools of jurisprudence unanimously agree that gold saved as investment, wealth storage, or financial security is zakatable at 2.5% annually. This includes the Hanafi, Maliki, Shafi, Hanbali, and Zahiri schools along with all contemporary scholars. The consensus is absolute and unambiguous: physical gold bars, gold coins, gold bullion, and any gold held for purposes other than wearing as permitted adornment requires Zakat calculation when it exceeds 87.48 grams of pure gold and has been possessed for one complete lunar year. The evidence from Quran and authentic Hadith explicitly addressing gold hoarding and Zakat obligations provides clear textual support for this consensus. For Zakat on gold savings, Muslims can proceed with complete certainty that the obligation is firmly established in Islamic law and requires faithful fulfillment through accurate calculation and timely payment.
FAQ
Frequently asked questions about Zakat on gold savings
Direct answers to the most common questions Muslims have about gold and Zakat.
Do I pay Zakat on physical gold bars and coins I own as savings?▾
Yes, physical gold saved as wealth is zakatable at 2.5% annually. Gold bars, gold coins, gold bullion, and any gold held for investment or savings purposes requires Zakat calculation. This includes Sovereigns, Krugerrands, Britannias, American Gold Eagles, Canadian Maple Leafs, and all other gold coins. When your total gold savings exceeds 87.48 grams of pure gold and you have held it for one lunar year, calculate Zakat on current gold value.
What is the nisab threshold for gold savings in grams?▾
The nisab for gold is 87.48 grams of pure gold. This threshold applies whether you own gold bars, coins, jewelry, or any other form of gold. If your total gold savings is less than 87.48 grams, no Zakat is due. If you own 87.48 grams or more and have possessed it for one complete lunar year, calculate 2.5% Zakat on the total current value of all your gold savings.
How do I calculate Zakat on gold coins like Sovereigns or Krugerrands?▾
Determine the pure gold content of your coins by checking their specifications. A British Sovereign contains 7.32 grams of pure gold. A Krugerrand contains 31.1 grams pure gold. Count your total coins, multiply by pure gold per coin to get total grams, compare to 87.48 gram nisab, and calculate 2.5% Zakat on current market value if above nisab. Twelve Sovereigns equal 87.84 grams pure gold, exceeding nisab.
Is there a difference between Zakat on 24k gold bars versus 22k gold?▾
Yes, you must account for purity. 24k gold is 100% pure, so 100 grams of 24k bars equals 100 grams pure gold. 22k gold is 91.67% pure, so 100 grams of 22k equals 91.67 grams pure gold. For Zakat on gold savings, calculate pure gold content by multiplying total weight by purity percentage, then compare pure gold total to the 87.48 gram nisab threshold.
Do I pay Zakat on gold stored in bank vaults or safe deposit boxes?▾
Yes, gold saved in bank vaults, safe deposit boxes, or secure storage facilities is fully zakatable. The storage location does not change Zakat obligations. Whether you keep gold at home in a personal safe, in bank vault storage, or with specialized gold storage companies, all gold savings require Zakat calculation at 2.5% annually on current value when above nisab for one year.
What about gold certificates or allocated gold accounts?▾
Allocated gold where you own specific identifiable bars stored on your behalf is treated like physical gold for Zakat purposes. You own actual gold even though stored elsewhere, so calculate Zakat on the gold content. Unallocated gold accounts where you have a claim to gold but do not own specific bars are more complex. Most scholars treat unallocated accounts as zakatable debt owed to you, requiring Zakat on the gold value.
How do I value my gold savings for Zakat calculation?▾
Check current gold market prices on your annual Zakat date. Gold prices are quoted per gram or per troy ounce. Convert to your currency if needed. Multiply your total pure gold grams by current price per gram to get total value. For example, if you own 100 grams pure gold and current price is fifty pounds per gram, your gold savings value is five thousand pounds requiring one hundred and twenty-five pounds Zakat at 2.5%.
Do I combine gold savings with gold jewelry for nisab calculation?▾
It depends on whether the jewelry is personal adornment or investment gold. Under majority scholarly opinion, gold jewelry genuinely worn for permitted adornment is exempt from Zakat, so only count investment gold jewelry. Combine investment gold jewelry with gold savings to determine if you exceed the 87.48 gram nisab. If you own 60 grams of gold bars plus 50 grams of unworn gold jewelry, your combined 110 grams exceeds nisab.
What if I buy and sell gold frequently for investment purposes?▾
Frequent gold trading does not change Zakat calculation method. You do not pay Zakat on each transaction. Calculate Zakat once annually on your designated Zakat date using the total gold you own on that date. Whether you trade gold daily or hold it for years, the annual assessment at 2.5% on current holdings is the same for Zakat on gold savings.
Can I pay Zakat by giving gold instead of cash?▾
Yes, you can pay Zakat in gold rather than currency. If you owe Zakat on 100 grams of gold savings, the Zakat amount is 2.5 grams. You can give 2.5 grams of gold to eligible recipients or sell it and give the cash equivalent. However, cash is usually more practical for recipients. The obligation is 2.5% of gold value whether paid in gold or cash for Zakat on gold savings.
Implementation
Practical tips for managing Zakat on gold savings
Make gold Zakat calculation accurate and maintain ongoing compliance.
1. Maintain accurate gold inventory records
Keep detailed records of all gold you own including weights, purities, purchase dates, and storage locations. Document each gold bar and coin with specifications. Update records when buying or selling gold. This makes annual Zakat on gold savings calculation straightforward without needing to re-inventory everything each year.
2. Track when you first crossed nisab
Note the date you first accumulated 87.48 grams or more of pure gold. This marks the beginning of your hawl requiring one lunar year to pass before Zakat becomes due. If you buy gold gradually, you may not know precisely when you crossed nisab, so estimate conservatively to ensure you do not delay obligatory Zakat payments.
3. Check gold prices on your actual Zakat date
Gold prices fluctuate daily. Always check current spot gold prices on your specific annual Zakat date, not prices from weeks or months earlier. Use reputable sources like London Bullion Market, major dealers, or financial data providers. Calculate Zakat on gold savings using the actual current price to ensure accurate valuation.
4. Convert all gold to pure gold grams
Whether you own 24k, 22k, or other purity gold, always calculate pure gold content by adjusting for purity percentage. Sum pure gold from all holdings to get accurate total for nisab comparison. Do not compare total weight including alloyed metals to nisab, as this creates inaccurate calculations for Zakat on gold savings.
5. Include all storage locations and account types
Do not forget gold stored in multiple places. Include home safes, bank safe deposit boxes, vault storage, allocated accounts, digital gold platforms, and anywhere you own gold. All locations combine into one total gold wealth assessment for Zakat on gold savings regardless of where physically stored.
6. Combine with other wealth for complete Zakat
Gold savings Zakat is not calculated separately from other Zakat. Add your gold value to cash, investments, and all other zakatable wealth for one comprehensive annual assessment. Pay 2.5% Zakat on the complete total. This ensures proper wealth purification across all asset categories including gold.
The simplicity of Zakat on gold savings
Despite various gold forms and storage arrangements, Zakat on gold savings follows a straightforward method: calculate total pure gold grams owned, compare to 87.48 gram nisab, and pay 2.5% of current gold value annually if above nisab for one year. The complete scholarly consensus on gold savings being zakatable, combined with clear Quranic and Hadith evidence, makes this one of the most certain Zakat obligations. Maintain accurate records, check prices on your Zakat date, and fulfill this pillar of Islam with confidence knowing you are purifying substantial wealth according to divine command.
Fulfill your Zakat obligation
Calculate Zakat on gold savings and all other wealth
Whether you own gold bars, gold coins, allocated vault storage, or mixed gold holdings, calculate your complete annual Zakat obligation accurately. Our calculator guides you through including gold with cash, investments, and other assets. Determine pure gold content, check current prices, and fulfill this pillar of Islam with confidence.
Related guides for gold owners
Disclaimer: This guide provides general educational information about Zakat on gold savings based on established Islamic jurisprudence with complete scholarly consensus across all major schools of Islamic law. Individual circumstances vary based on specific gold holdings, purity variations, storage arrangements, purchase timing, and personal financial situations. The fundamental principle that gold saved as investment or wealth preservation requires 2.5% Zakat annually on values exceeding 87.48 grams nisab for one lunar year is firmly established without debate. However, complex situations involving allocated versus unallocated accounts, gold certificates with uncertain redemption rights, gold held in trust arrangements, gold in foreign jurisdictions, or questions about combining gold with other assets may benefit from individual scholarly consultation. For questions about gold purity testing, professional vault storage arrangements, gold ETF structures, or edge cases involving contested ownership or gold held for specific purposes, consult qualified Islamic scholars familiar with both classical jurisprudence and modern gold investment products. This guide represents the clear unanimous scholarly position on gold savings Zakat and provides practical implementation guidance for the vast majority of situations.
About this Content
Written by the Zakat Finance editorial team. All content is based on authentic Islamic scholarship and is reviewed regularly to ensure accuracy. The content aims to provide guidance on Zakat calculation and does not replace advice from a qualified Islamic scholar.
Last updated: February 2026
Method note: We present common scholarly approaches to Zakat calculation, encouraging consultation with trusted scholars for personal cases.