This question often arises when the price of gold rises significantly. Many Muslims who save gold as savings or investments begin to ask, does the zakat increase when the price of gold rises?
The answer: yes, it can increase, depending on the value of the gold owned when it reaches nisab and haul.
In zakat jurisprudence, gold is considered an asset that is subject to zakat if it meets two main conditions: it has reached the nisab (minimum threshold) and has been owned for one Hijri year (haul).
The Nisab for Gold Zakat Refers to Weight, Not Price
The nisab for gold zakat is 85 grams of pure gold.
This provision is based on a hadith of the Prophet ﷺ narrated by Muhammad about the minimum threshold of gold that is subject to zakat.
This means that the initial benchmark for gold zakat is not the rupiah value, but the weight of the gold. However, when calculating zakat, the rupiah value follows the current price of gold.
This is where the increase in the price of gold affects the amount of zakat.
How Does the Increase in Gold Prices Affect Zakat?
For example, someone has 100 grams of gold that has been stored for more than a year.
If last year the price of gold was IDR 900,000 per gram, then the total value of the gold is IDR 90,000,000. The zakat paid is 2.5% of that value.
However, when the price of gold rises to IDR 1,200,000 per gram, the value of the same gold becomes IDR 120,000,000. Then, the 2.5% zakat is calculated from this latest figure.
The gold itself does not increase, but its value increases, so the zakat paid also increases.
Scholars’ Opinions on This Calculation
Scholars agree that zakat on gold is calculated based on the value of gold at the time the zakat is due, not the value at the time of purchase.
Imam Nawawi in Al-Majmu’ explains that zakat on gold and silver is calculated based on their value when they have reached the haul.
This is also the opinion of contemporary scholars such as Yusuf al-Qaradawi in Fiqh az-Zakah, who emphasizes that fluctuations in the price of gold affect the value of zakat because zakat is related to the value of the asset, not just the physical amount.
Read also: How to Calculate Gold Zakat, Requirements, and Nisab
What if Gold is Used as Jewelry?
Here, there is a difference of opinion among scholars.
Some scholars, such as those in the Hanafi school of thought, require zakat on gold jewelry if it reaches the nisab. Meanwhile, the Shafi’i and Maliki schools of thought argue that gold that is used as everyday jewelry is not subject to zakat.
However, if the amount is excessive or is kept as an investment, then it is still subject to zakat.
The bottom line: When the price of gold rises, zakat may also rise
Because zakat is calculated based on the current value of gold, when the price of gold rises, the amount of zakat paid also rises. Conversely, if the price of gold falls, the value of zakat paid may also be lower.
This is the fairness of the zakat law. It follows the actual value of a person’s assets.
Simple steps to calculate or confirm this:
- Make sure the gold has reached 85 grams
- Make sure it has been owned for 1 Hijri year
- Check the current price of gold
- Multiply the total value of the gold by 2.5%
This way, the zakat paid will be in accordance with the provisions of the law.
The increase in the price of gold is not only good news for investment value, but also a reminder that there are other people’s rights in the assets we own. When the price of gold rises and zakat increases, it means that those in need will receive even greater benefits.
Therefore, don’t forget to always pay gold zakat if the precious metal you own has reached the nisab and haul.
