Question:

Assalamu Alaikum our honourable Ameer

Is there Zakat on gold jewellery that is for the purpose of savings? Jazak Allahu Khair and the victory of Allah for this dawah at your hands...

Answer:

Wa Alaikum us Salaam Wa Rahmatullah Wa Barakaatuhu

1. Jewellery is what a woman wears to beautify and adorn herself with from gold and silver on her wrists, neck, ears, or other parts of her bodies.

There is no Zakat on jewellery, whether it is gold, silver, or other types of gems like pearls, ruby, emerald, or carnelian and other types of precious gemstones; whether the jewellery was a lot or little; whether it reached the nisab (amount required for zakat) or exceeded it. There is no zakat on any of it, this is because it is worn women use it for adornment and beautification.

On the authority of Al-Laith Bin Sa'ad from Abi Az-Zubair from Jabbir that the Prophet (saw) said:

«ليس في الحليّ زكاة» "No zakat on jewellery". Ibn Qudama mentioned it in Al-Mughni.

Abu Ubaid narrated from Amr Ibn Dinar that he said: "Jabbir Ibn Abdullah was asked if there was zakat on jewellery. He said, ‘No.' They said, ‘Even if it is exceeded 10,000?' He said, ‘Yes.'"

On the authority of Abdullah Ibn Al-Qasim from his father that "A'isha (ra) the wife of the Prophet (saw) used to beautify her nieces who were orphans living with her with jewellery, she (ra) did not pay zakat on their jewellery." (Narrated by Malik in Al- Muwatta')

As for the hadeeth of Amr Ibn Shu'aib which had the following text: "A woman came to the Prophet (saw) accompanied by her daughter who was wearing two gold bracelets, He said: «هل تعطين زكاة هذا؟» "Do you pay zakat on this?" She replied, "No." He (saw) said, «أيسرُّك أن يُسوِّرك الله بهما بسوارين من نار» "Will you be pleased if Allah (swt) makes you wear two bracelets of fire instead of them?" Abu Ubaid said regarding this hadeeth: "We only know that it was mentioned with one version, with a chain of transmission that both people in the past and now discuss." At-Tirmithi said: "Nothing comes under this chapter."

Those who hold the opinion that zakat is not obliged on jewellery are: Ibn Umar, Jabbir, Anas, A'isha, Asma', also al-Qasim, ash-Sha'bi, Qatada, Muhammad Bin Ali, Malik, ash-Shafi'i, Ahmad, Abu Ubaid, Ishaq, Abu Thawr.

This is regarding the jewellery in which a woman uses as adornment, but if it was for trade, then zakat of trade is applicable.

2. But if the jewellery is not for adornment or trade, but for the purpose of saving without the need, then this is considered hoarding, i.e. it is prohibited even if zakat is paid on it.

The evidence for the prohibition of hoarding is the saying of Allah (swt):

[وَالَّذِينَ يَكْنِزُونَ الذَّهَبَ وَالْفِضَّةَ وَلَا يُنْفِقُونَهَا فِي سَبِيلِ اللَّهِ فَبَشِّرْهُمْ بِعَذَابٍ أَلِيمٍ * يَوْمَ يُحْمَى عَلَيْهَا فِي نَارِ جَهَنَّمَ فَتُكْوَى بِهَا جِبَاهُهُمْ وَجُنُوبُهُمْ وَظُهُورُهُمْ هَذَا مَا كَنَزْتُمْ لِأَنْفُسِكُمْ فَذُوقُوا مَا كُنْتُمْ تَكْنِزُونَ]

"...And those who hoard gold and silver and spend it not in the way of Allah - give them tidings of a painful punishment * The Day when it will be heated in the fire of Hell and seared therewith will be their foreheads, their flanks, and their backs, [it will be said], "This is what you hoarded for yourselves, so taste what you used to hoard." [At-Tawba: 34-35]

Ahmad narrated in a valid (sahih) chain of transmission from Abi Umamah that he said, "A man from the people of Suffah passed away, a dinar was found in his clothes, the Prophet (saw) said: «كَيَّةٌ» "One burn", he then said: a second man passed away and two dinars were found in his clothes, the Prophet (saw) said: «كَيَّتَانِ» "Two burns"".

Tabarani had a similar chain of transmission to Abi Umamah Al-Bahili. This means the absolute prohibition of hoarding of gold and silver, even if it was two dinars or even one; as long as it is hoarding i.e. saving money for no purpose to spend it on.

Furthermore, the Prophet (saw) said regarding the two men because they lived off sadaqa while possessing gold. He (saw) said:«كية» "One burn" «كيتان» and "Two burns" in reference to the saying of Allah (swt):

[يَوْمَ يُحْمَى عَلَيْهَا فِي نَارِ جَهَنَّمَ فَتُكْوَى بِهَا جِبَاهُهُمْ وَجُنُوبُهُمْ]

"The Day when it will be heated in the fire of Hell and seared therewith will be their foreheads, their flanks.." [At-Tawba: 35]

The verse is part of the verse on hoarding. This is an evidence absolutely prohibiting hoarding, whether it has reached nisab (percent) of zakat or not, and whether zakat is paid on it or not- all forms of hoarding is haram.

Your brother,

Ata Bin Khalil Abu Al-Rashtah