Zakat on Gold — A Complete Guide for Pakistani Muslims

Gold is one of the most commonly held assets in Pakistan, especially among women in the form of jewelry. Understanding how Zakat applies to gold is essential for every Muslim who owns gold in any form.

Is Zakat Due on Gold?

Yes. Zakat is obligatory on gold if the amount you own meets or exceeds the Nisab threshold and you have held it for one full lunar year (Hawl). This applies to:

• Gold bars and coins
• Gold jewelry (rules vary by school of thought)
• Gold investments and ETFs
• Gold kept in bank lockers

Hanafi vs. Shafi'i — Key Difference on Gold Jewelry

This is one of the most debated topics in Zakat calculation:

School	Gold Jewelry Rule
Hanafi	Zakat is due on ALL gold, including jewelry that is regularly worn. No exemption for personal use jewelry.
Shafi'i / Hanbali	Gold jewelry worn regularly for personal adornment is generally exempt from Zakat. Only gold kept as savings/investment is Zakatable.

In Pakistan, most Muslims follow the Hanafi school, which means Zakat is payable on all gold — including your everyday jewelry.

How Much Gold Triggers Nisab?

However, if you follow the Hanafi school, Nisab is based on silver (612.36 grams), which is a much lower threshold. This means even a small amount of gold, when combined with your other assets, may make you eligible for Zakat.

How to Calculate Zakat on Gold — Step by Step

1. Weigh your gold — Find out the total weight of all your gold in grams. Most jewelers can do this for free.
2. Determine purity — Most Pakistani gold jewelry is 21 karat or 22 karat. Pure gold is 24 karat.
3. Convert to pure gold — Multiply weight by purity factor:
   • 22K gold: weight × (22/24) = pure gold weight
   • 21K gold: weight × (21/24) = pure gold weight
   • 18K gold: weight × (18/24) = pure gold weight
4. Multiply by current rate — Pure gold weight × current market rate per gram
5. Add to other assets — Combine with cash, silver, savings, etc.
6. Check against Nisab — If total wealth exceeds Nisab, calculate 2.5%

Example: Calculating Zakat on Gold Jewelry

Common Questions About Zakat on Gold

Do I pay Zakat on gold I wear daily?

According to the Hanafi school (majority in Pakistan): Yes. All gold is Zakatable, regardless of whether you wear it or keep it stored. The Shafi'i school generally exempts personal-use jewelry.

What about gold gifts I received?

Gold received as a gift (such as wedding jewelry) is still subject to Zakat once you have owned it for one full lunar year and your total wealth meets Nisab.

Do I pay Zakat on gold teeth or medical implants?

No. Gold used for medical or dental purposes is typically exempt from Zakat because it serves a necessity and cannot be readily liquidated.

What if I don't know the exact weight of my gold?

Visit a local jeweler — they can weigh your gold for free. It's important to know the exact weight for an accurate Zakat calculation.