INTRODUCTION

The topic that we will discussed are “Zakat On Gold and Silver Jewelry”, we will go in details
about the “Latest Issues About Zakat On Gold and Silver Jewelry”. Firstly, we will explain about
on the “Issues Is There Is Zakat On Gold and Silver Jewelry”. Besides, we will also discuss
about “The Gold That Is Pledged Is Obligatory”. In addition, we will go through about “Is The
Investment of Gold Compliant Syariah and Non- Compliant Syariah Is Subject of Zakat “. Lastly,
the most important topic of discussion that will be discussed is “Issues Why Is the Value of Uruf
Weight aor Gold In Each State Different.

ISSUES: IS THERE IS ZAKAT ON GOLD AND SILVER JEWELRY AND WHO SHOULD PAID
Early history proves gold and silver as a very useful metal based on its use as currency as well
as the value of the goods. Hence, shura 'has already regarded both as a wealth that nourished
and was prescribed as obligatory zakat whether in money or lumps that had not been melted.
These include in bowls, art items, sculptures and so on.

It is reported that a woman came to the Prophet (may Allah bless him and his Household and
grant them peace) with a daughter of hers. On the daughter’s arm were two thick bracelets of
gold. He asked her, “Do you give the zakat of this?” She said, “No.” He said, “Would it please
you for Allah to put them around you as bracelets of fire on the Day of Resurrection?”
Thereupon, she removed them and threw them before the Prophet (may Allah bless him and his
Household and grant them peace), saying, “They are for [the cause of] Allah and His
messenger.”

[Narrated by Abu Dawud, Tirmidhi, Nasa’i, Ahmad and others.

Hafiz Ibn Hajar said, in Bulugh al-Maram, “Its isnad is strong.”]

`A’ishah (may Allah be pleased with her), the wife of the Prophet (may Allah bless him and his
Household and grant them peace), says, “The Messenger of Allah (may Allah bless him and his
Household and grant them peace) entered upon me and saw bands ( i.e. rings without any
stones) of silver on [the fingers of] my hand. He said, “What is this, Dear `A’ishah?!” I replied, “I
put them on to make myself beautiful for you, Dear Messenger of Allah!” He said, “Do you pay
their zakat?” I said, “No.” He said, “They are sufficient for you [as a share] of the Fire [of Hell].”

[Narrated by Abu Dawud]

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Gold and silver, whether in the form of jewelry otherwise, will always be subject to Zakat provided
their respective weights exceed the nisab amount. According to scholars, nisab for gold is 20
mithqal (~ 87.49g), and the nisab for silver is 200 dirhams (~613.35g).

The zakat must be paid by the owner of the jewelry, not by the husband. Shaykh Ibn Baaz (may
Allaah have mercy on him) said: “Zakaah must be paid by the owner of the jewelry. If it is paid by
her husband or someone else on her behalf and with her permission, there is nothing wrong with
that. The zakat need not be paid from the jewelry itself, rather it is sufficient to give the equivalent
value each time one year passes, according to the value of gold and silver in the market when
the year has passed.

ISSUES: THE GOLD THAT IS PLEDGED IS OBLIGATORY

The pledged gold is still considered to be the property of his master and if it reaches nisab and
haul, his master is obliged to issue zakat. Nisab for gold as mentioned by Rasulullah Sallallahu
'alaihi wa sallam as much as 20 mithqal i.e. 20 Dinar. According to the calculations in modern
times is 85 grams, the weight of which reaches the nisab. The secured gold should be subject to
zakat after deducting the value of the loan and the rate of wages to Ar-Rahnu. After deducting the
existing value still reaches the nisab rate of 85 grams, it is obligatory to issue zakat by 2.5% of
the value. Rahnu from the point of language means: eternal, fixed and resistant. Rahnu means
"charge" in Malay. According to the language, it means risking something for example mortgaging,
mortgaging the land and so on.

2. According to the term Jurisprudence or Islamic law, rahnu or "pawn" is to make an item as
collateral to a debt to settle the debt when not in power to pay it.

MORTGAGE BY ISLAMIC VIEWS

Evidence Charges

Here are the scriptures which are clearly stated by the Qur'an and Sunnah of the Prophet S.A.W.

Quran

‫وإن كنتم على سفر ولم تجدوا كاتبا فرهن مقبوضة‬

(Surah al-Baqarah283: 2)

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Which means: If you are on a journey (and have no cash) while you do not get a writer, then there
is a duty that can be held ...

ISSUES: IS THE INVESTMENT OF GOLD COMPLIANT SYARIAH AND NON COMPLIANT

SYARIAH IS SUBJECT TO ZAKATSYARIAH

Investment Gold Compliant

Gold-compliant gold investments are usually divided into two forms;

i. Physical Gold Investment

Physically-owned gold is usually intended as an investment for profit. Usually this gold is a coin,
ingot, bar and wafer. Must be zero if gold weighs or exceeds nisab 85 grams. For example, the
amount of gold held for investment is 400 grams then:

Gold Zakat (investment / business)

= Gold Weight x Current Price x 2.5%

= 400 gm x RM140 (example) x 2.5%

= RM1,400

ii. Gold Account (Passbook)

There are banks offering investment-shaped gold passbook or Gold Savings Account. This
account records the amount of deposits in the gold gram unit invested. Investment that is
obedient to Islam is the physical of the gold that exists and can be owned by investors. Must be
surrendered if there is an investment intention and gold weighs sufficient nisab 85 grams.

For example, if the amount of gold owned in a passbook of 200 grams then:

Gold Zakat (investment / business)

= Gold Weight x Current Price x 2.5%

= 200 gm x RM140 (example) x 2.5%

= RM700

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Non-compliant Investments

The non-compliant gold investment is usually divided into two forms;

i. Gold Physics Without Passbook (Passbook)

Gold investment passbook or gold savings account is not compliant if there is no physical gold handle.
Zakat is only charged on the principal investment if the amount exceeds the annual nisab. It is calculated
according to the formula of Zakat Wang Simpanan.

ii. Virtual Golden Account

Virtual gold is a gold traded for non-physical investment. Virtual gold business uses an electronic
platform. An investor with an account at a specific broker may make a purchase order and gold sale at
current price displayed on the platform but cannot claim the physical gold it purchases.

Since this gold sale does not involve physical gold then it is a non-compliant sharia. Zakat is only charged
on principal investment if the amount exceeds the annual nisab rate. It is categorized as Zakat Wang
Simpanan payment.

Methods of calculation Zakat gold investment non-compliant:

Zakat

= Principal investment @ lowest balance x zakat rate

= RM40,000 (example) x 2.5%

= RM1,000

ISSUES WHY IS THE VALUE OF URUF WEIGHT FOR GOLD IN EACH STATE DIFFERENT
In the fiqh method, this is called al-'adatul muhakamah or uruf. In the gold usage chapter, for example, we
have generally seen that there are women in a particular country who like to wear gold jewelry. So there
was a joke that they when chatting liked to lift up their arms, to show the many gold bracelets in his hand.

However, there are women especially in the modern world, wearing only minimal gold jewelry in
their bodies. They do not like to wear big and heavy gold, according to the minimalist taste of

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educational outcomes and so on.So, this is the difference that forms uruf or 'certain departure
rate' in gold usage. If you are living in a country where the pattern of its use is small, then it is
certain that in determining the obligations of the zakat gold of the jewelry is low; eg 150 gram is
mandatory for zakat.

However, for those who live in a country whose pattern of gold jewelry is more, then the logic is
also higher, for example 850 grams of gold should be zakat gold jewelery. When you are migrating
and living in another state A (as in the case above, from state A to state B), here you are subject
to urbity in state B which you are in.

This is because, in the practice of the matter, every Muslim is subject to the rules set by the
religious authorities in the state. It is to ensure consistency and to avoid conflicts.

This can be relied upon by the will of Allah SWT for a person in obedience to the government:
Obey Allah, obey the messengers and the rulers among you. (an-Nisa ': 59).

In addition, the consent of the Messenger of Allah to Muadz bin Jabal ra in deciding an upcoming
law when passing it to the state of Yemen, is also a proposition that Muslims should obey a
decision to be determined by the government, based on the necessity of a situation from time to
time current.

NO STATE GOLD URUF RATE (gm)

1 KEDAH 170
2 PERLIS 170
3 PULAU PINANG 165
4 KELANTAN TIADA
5 TERENGGANU 850
6 PAHANG 500
7 SELANGOR 800
8 WILAYAH PERSEKUTUAN 150
9 NEGERI SEMBILAN 200
10 MELAKA 200
11 SABAH 250
12 SERAWAK 775
13 PERAK 500
14 JOHOR 850

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SOLUTION: IS THERE ZAKAT FOR GOLD AND SILVER JEWELRY
Nisab zakat gold is based on the present value of the gold nisab of 20 mithqal (85 grams) or silver
(595 grams). Jumhur fuqaha has relied on nisab of money to nisab of gold (85 grams).

Obligatory obligations of Zakat:

In Al Qur’an state in Surah At-Taubah verse 34 that means

"And those who store gold and silver and spend them not in the cause of Allah, then announce to
them a grievous Penalty"

Word of the Prophet s.a.w:

"Ali said:" When you have 200 dirhams and have enough haul (forty years) obligatory zakat 5
dirham, and it is not obligatory to issue zakat (gold) unless you have 20 dinar (one of the ancient
times used in Arab countries). When you have 20 dinar and have enough haul obliged zakat half
a dinar. Likewise, the rate if its value increases and it is not required to pay zakat for any property
except for a year. "

(Abu Dawud's)

"Every gold and silver owner who does not fulfill his right then on the Day of Judgment is made a
piece and then burned in the fire of hell then looted in their ribs and back; Every time the slabs
become cold it is re-burned on a day that is equal to fifty thousand (50,000) years until it is
punished among the slaves of God then seen its way either to heaven or to hell ".

(Hadith of Muslim History)

SOLUTION: THE GOLD THAT IS PLEDGED IS OBLIGATORY

The obligation to pay the zakat of gold including the pledge has been mentioned clearly and
clearly in the Al Qur’an which means:

"And those who store gold and silver and spend none of them in the way of Allah, then proclaim
to them retribution painful. On the Day when the gold of silver is set up in the Fire, they will spread
it with their foreheads and their ribs and their backs (saying to them): "This is what you have kept
for yourselves, therefore taste the (meaning of) what you keep.”[At-Taubah (9): 34-35]

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The Prophet (peace be upon him) said in a hadith narrated by Abu Hurairah RA which means:

"Whoever is the owner of gold and silver and does not pay Zakat, on the Day of Judgment will be
made available to him the expanse of fire heated by hell. With that fire will be called the ribs and
the back ... "(Sahih Muslim)

SOLUTION: IS GOLD FUNDED IN INVESTMENT SHALL NOT FOLLOW THE SYARIAH

PLANED ZAKAT
Mafhumnya: From Ubadah al-Shomit that Rasulullah Shallallaahu 'alaihi wa Sallam said:
"(Allowed to sell) gold with gold, silver with silver, wheat with wheat, sya'ir with sya'ir, dates with
dates, salt with salt, when it's the same kind, the rate or the scale, and the exchange by lani or
on the spot. If there are different types, then sell them according to your requirement but on
condition that they change the two items happen on the spot. "

SOLUTION WHY IS THE VALUE OF URUF WEIGHT FOR GOLD IN EACH STATE DIFFERENT
According to Abi Hanifah and Muhammad bin Al-Hasan, still wear old custom. because when
using a new custom, there is usury. While according to Abu Yusuf and most non-Hanafi scholars,
it has to be addressed with a new 'urf / custom.

According to Abdul Wahab Khallaf, 'urf / custom is in fact not a stand alone proposition'. It
generally includes maintaining the problem of murtalah. 'Urf / adat as it should be considered in
determining the law, should also be considered in interpreting nash, such as takhshishul'am and
taqyidul muthlaq with the letter' urf / adat. And sometimes qiyas are left out because there is a 'urf
/ custom that is more appropriate. For example, transactions / agreements with the salam or
istishna system are considered legitimate, since it has been cultured in the community ('urf), even
according to qiyas. such tracions are not legitimate, as the goods are not or do not exist at the
time of the transaction / contract.

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CONCLUSION

Zakat, one of the five pillars of Islam, thus one of the basic foundations of the religion, is assessed
once per year and is obligated upon those Muslims, men and women, who possess means
enough to distribute a certain calculated percentage to the poor and needy. As with many words
used by God in the Quran, the word Zakat has many layers of meaning. It can be translated to
obligatory charity, alms, or tithe; however it combines these meanings with a deeper richer
meaning of purity.

Giving Zakat purifies the heart of the one who gives from selfishness and greed for wealth, and
develops in him sympathy for the poor and needy. For those who receive the Zakat, it purifies
the heart from envy and hatred of the rich and prosperous, and fosters a sense of good will
between brothers. Zakat has a deep spiritual significance as well as an economic objective.

Muslims believe God is the true Owner of all things and we, human beings, are merely trustees.
Wealth should be produced, distributed, acquired and spent in a way which is pleasing to God.
Every Muslim considers his condition in this world as a test from God. Those with wealth have
the obligation to be generous and charitable, those without have the obligation to be patient, to
work to improve their situation, and to be free of envy. God emphasises that it is not a person’s
wealth but his piety, character and manners that determine his ultimate place in the hereafter.

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REFERENCE
1. Books
 Zakat And Rural Development 1993, Kuala Lumpur, Dr. Abdul Aziz Bin Muhammad. Berita
Publishing
 The Law Institution Of Zakat 2003, A.Z. Abbasi,Farishta G . de Zayas
 Zakat Management And Taxation 2007, IBFIM, Abd Aziz Abu Bakar Mohammad Amin
Ibrahim Shahizan Md Noh

2. Internet
 https://www.islamreligion.com/articles/4997/zakat-a-obligatory-charity/Interne t

http://www.iium.edu.my/deed/hadith/muslim/005_smt.html