Chapter on Zakat for Gold and Silver

Zakat becomes obligatory on gold when it reaches twenty mithqāls and on silver when it reaches two hundred dirhams, at the fixed rate of one-quarter of one-tenth—that is, one-fortieth (2.5%)—of each. Gold may be combined with silver to complete the minimum threshold (niṣāb), and the market value of trade goods is likewise added to either of them.

A man is permitted to use silver for a ring, the pommel or hilt of a sword, the ornament of a belt, and similar items. Of gold he may use only the pommel of a sword or what necessity demands, such as a prosthetic nose and the like. Women, however, may adorn themselves with whatever quantity of gold or silver is customary for them, no matter how great. No zakat is due on jewellery kept for personal use or for occasional lending. If, however, the jewellery is set aside for hire, for liquidation to cover expenses, or if its use is itself unlawful, then zakat must be paid on it.