How Should A Person Who Trades In Gold Give Zakat?

How should a person who trades in gold give zakat?

People who engage in gold trade should give zakat according to the gold in their possession plus the income they earn. If they have gold of different fines, zakat is given differently for each fine, either in kind or based on its value. However, when calculating the nisab amount, all the gold in hand is weighed together regardless of difference in fines.(Kasani, Bada’i, II, 20).

While determining the amount of zakat gold, the last year’s zakat date is taken as basis. For example, if zakat was paid on the first day of Ramadan the previous year, present year’s zakat is given based on the current gold amount in hand on the first day of Ramadan. Increases and decreases in the amount in hand throughout the year are not taken into consideration.

The zakat of ornaments in hand for trade is not given solely based on their mineral values, but over their costs, taking into account the additional values gained by things such as workmanship and precious stones used.

Source: Presidency Of Religious Affairs The Turkey, High Board of Religious Affairs FATWA