Q: Assalau alykum Sheikh,
But then Sheikh, if someone paid their Zakat according to the gold value, what must they do when the hawl goes around the money again next year? do they pay Zakat according to the value of gold or silver? (question has come from the following set of information)
Answers: وعليكم السلام ورحمة الله وبركاته
Great question, we appreciate you seeking clarity. We wanted to give you the best response, thus our delay. I am sure the following would clarify all that which is necessary:
- If you do not have assets except gold, then you must pay your zakah in accordance to the nisab of gold ( For example, in 2010 it would have been around the gold price range of approximately $3500 that would have made you eligible to pay your zakat for a person only owning gold.)
- If you do not have assets except silver, then you must pay your zakah in accordance to the nisab of silver. (For example, in 2010 it would have been around the silver price range of approximately $560 that would have made you eligible to pay your zakah for a person only owning gold.)
- If you have gold and silver, then it would be valued in accordance to the lower nisab (in 2010, it would be in accordance to silver.)
- If you have gold and silver and other assets and investments, then it would be valued in accordance to the lower nisab (in 2010, it would be in accordance to silver.)
- In your case, if you had given your zakah based the on gold nisab, your zakah would be viewed as valid and thus discharged. However, in future kindly view the breakdown as mentioned above.
- Those that had less than $3500 (based on gold, values used for gold and silver are based on the year of 2010) but more than $560 (as based on silver) should pay it for the previous year as part of precaution.
We thank you for your question; we appreciate bringing clarity for you. We also apologize for any perceptual ambiguity displayed in our prior responses.
Allah Certainly Knows Best.