Valuing Jewelry for Zakat Calculation
Posted: 18 Rabi at-Thani 1435, 18 February 2014
Q.): I should be grateful if you could enlighten me regarding the calculations of zakat on gold jewelry. The price of 18k gold actually is 40 US dollars per gram. But it becomes 56 US dollars per gram if labor cost is included. Should I estimate jewelry value for zakat calculation on the basis of 40 or 56 us dollars per gram?
A.) Zakat is payable on the market related value of the gold. Though we are of the opinion that one does not consider the workmanship/craftsmanship of the jeweller, some Ulama are of the opinion that this will be considered as well in the event when one is discharging the Zakat. Hence, it is more in line with precaution that one calculate one’s Zakat obligation using the higher amount.
And Allah Ta'ala Knows Best