Is Zakat due on gold jewelry (Huly) kept for personal use or lending?
Chapter on Zakat on Gold and Silver
Al-Mughni
Book of Zakat
Primary text
Zakat is obligatory on gold jewelry held for use or lending. This position is attributed to the apparent understanding of the general obligation regarding currency. Evidence cited includes the statement: 'In silver, there is a quarter of a tenth, and there is no charity on less than five 'awaq'.' The implied meaning is that charity is due if the minimum threshold (five 'awaq') is reached. Furthermore, a Hadith is cited where the Prophet, peace be upon him, warned a woman regarding gold bracelets her daughter held, saying, 'Would you be pleased that Allah adorn you with two bracelets of fire?' This indicates a form of liability or obligation attached to the gold. Furthermore, it is a form of currency (thaman), resembling coined money (Tibr). Zakat is due unless the item is explicitly prepared for non-monetary use like hiring or necessary expense, or if it was acquired specifically to evade Zakat.
Supporting text
There is a view that no Zakat is due on jewelry, as narrated from five Companions of the Messenger of Allah, peace be upon him. They interpreted the Zakat due as requiring the owner to lend it out ('ariyatuhu'). The evidence for this view is the Hadith: 'There is no Zakat in jewelry.' This is reasoned by arguing that jewelry is intended for permissible use and is thus withheld from potential growth (namaa), similar to productive animals or clothing kept for display. Furthermore, the term 'Riqah' (silver/currency) in the hadith establishing the minimum threshold refers specifically to struck silver coins, and the Hadith regarding the two bracelets is questioned in authenticity by some scholars.