Zakat on Gold, Silver, and Currency

Zakat is the third pillar of Islam, and Ibn Uthaymin's treatment of it in al-Sharh al-Mumti' is meticulous and comprehensive. The chapter on zakat on gold, silver, and currency is foundational because these are the primary stores of wealth for most people, and the rulings governing them form the basis for understanding zakat on other categories of wealth. Ibn Uthaymin situates the obligation within its Quranic context: "And those who hoard gold and silver and do not spend them in the way of Allah — give them tidings of a painful punishment" (al-Tawbah 9:34).

The conditions for zakat on gold, silver, and currency are: ownership of the wealth (the zakat payer must be the owner, not a borrower or trustee), the wealth must reach the nisab threshold, a full lunar year (hawl) must pass while the wealth is at or above the nisab, and the wealth must be in excess of the owner's basic needs — though the Hanbali school considers this last condition to apply broadly rather than narrowly.

The nisab for gold is 20 mithqals, which scholars estimate to be approximately 85 grams of pure gold. The nisab for silver is 200 dirhams, estimated at approximately 595 grams of pure silver. Ibn Uthaymin explains that these thresholds represent the minimum wealth level at which a person is considered wealthy enough to be obligated to share with those in need. He discusses the contemporary question of which nisab to use for paper currency — whether the gold nisab or the silver nisab — noting that the silver nisab is generally lower and therefore more inclusive, catching more people in the net of obligation, and that some scholars prefer the silver nisab as the operative standard for currency to maximize benefit to the poor.

The rate of zakat on gold, silver, and currency is one-quarter of one-tenth (2.5%). Thus, one who owns 100 grams of gold for a full lunar year pays zakat of 2.5 grams or its monetary equivalent. Ibn Uthaymin walks through the calculation method in practical terms, addressing how to handle fluctuating values, jointly owned wealth, and debts. He explains the scholarly position that debts owed to the zakat payer are counted toward the nisab even if not yet received, while debts the payer owes reduce the zakatable wealth according to some scholars.

A practically important discussion is whether zakat is due on gold jewelry worn by women. The Hanbali school's relied-upon position, which Ibn Uthaymin acknowledges, is that there is no zakat on jewelry intended for personal use and not as an investment. However, Ibn Uthaymin personally prefers the view that zakat is due on all gold that reaches the nisab and has been held for a full year, regardless of its intended use, based on the generality of the evidences. He presents this as a matter of legitimate scholarly disagreement and advises caution.