Zakat on Jewelry Embedded with Diamonds and Precious Stones

Fatwa by: Former Grand Mufti of Saudi Arabia, Sheikh Ibn Baz (may Allah have mercy on him)

Question:
How should Zakat be calculated on jewelry that is not pure gold but embedded with diamonds, gemstones, and other precious stones? Should the weight of these gems be included with the gold when calculating Zakat, especially since separating them can be difficult?

Answer:
The obligation of Zakat is primarily on the gold itself, even if it is intended for personal use, such as wearing. However, there is no Zakat on diamonds, gemstones, pearls, or other precious stones. If the jewelry consists of both gold and embedded diamonds or gemstones, it is necessary for the woman, her husband, or her other guardians to carefully estimate the weight of the gold, or seek the opinion of experienced professionals in this regard. The judgment made based on a reasonable assumption (zann ghalib) will be considered valid.

If the weight of the gold reaches the Zakat threshold (Nisab), then Zakat will be obligatory. The Nisab for gold is 20 mithqal, which in modern terms equates to 11.5 Saudi guineas or 92 grams (approximately 7.5 tolas).

Zakat must be paid annually, and it is calculated as 2.5% (one-quarter of a tenth) of the total value of the gold. For instance, if the value of the gold is 1,000 currency units, the Zakat due would be 25 units. This is the most correct opinion based on the views of the scholars.

However, if the jewelry is held for trade, then according to the majority of scholars, the entire value of the jewelry, including the diamonds and pearls, will be subject to Zakat, just like other trade goods. The value of the stones will be considered, and Zakat will be due on the total amount.
 
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