Ramadan is a time of spiritual reflection, self-improvement, and heightened devotion and worship for Muslims around the world. Ramadan is the ninth month in the Islamic calendar where Muslims fast during the hours of daylight. Fasting is one of the Five Pillars of Islam and is important during Ramadan as it allows Muslims to devote themselves to their faith and come closer to Allah.
Gold is considered to have an important role in Ramadan through Zakat. This article looks at what this is and why gold is an important aspect of charitable giving in the Islamic religion.
Zakat during Ramadan
Zakat is another one of the Five Pillars of Islam and is a religious obligation for all Muslims around the world who meet certain wealth criteria. It is a way of easing the suffering of millions of people through a sustained charitable effort.
It is often paid out at the end of the year once calculations on any leftover wealth is established. This is then distributed to the poor and the needy. It is a mandatory process and is regarded as a form of worship, (Investopedia, 2021).
Zakat is not obligatory during the month of Ramadan, but many Muslims choose this time to do it.
The Prophet (pbuh) said: “Whoever pays the Zakat on his wealth, will have its evil removed from him.” (Ibn Khuzaimah and Al-Tabarani)
Those eligible to pay Zakat must pay a percentage of their cumulative wealth to charity each year. This payment is said to “purify” a Muslim’s wealth. While taxes go towards the country, Zakat goes to those who are in need.
Zakat is mandatory for all adult Muslims who earn a minimum amount of money each year, known as Nisab. The amount can be donated in the form of cash, assets, gold or silver. This can vary year to year which makes knowing how much to pay quite difficult.
An individual’s total overall wealth must meet or exceed the Nisab value in order for you to be eligible to pay Zakat. The Nisab value is directly related to the current values of gold and silver.
In the Holy Qur’an, the Nisab value is described as 612.36g of silver or 87.48g of gold. Originally, these values of silver and gold were equal but in the current day, they have become different, with the silver Nisab being significantly lower than its gold counterpart.
How much is Nisab for Zakat 2021?
- Gold – the value of 87.48g of gold (or 2.813 troy ounces)
- Silver – the value of 612.36g of silver (or 19.69 troy ounces)
How much Zakat can be paid in Gold?
If you earn an income and a salary, and you aren’t a farmer, a business owner or (who have different Zakat rules), you will pay 2.5% of the total value of all your liquid assets, gold and silver that you own.
“The best charity is that given in Ramadan.” (Prophet Muhammad (pbuh), Tirmidhi)
A simple way would be to look at all assets and savings for the entire year, look at the minimum amount during that period, and if it was above the Nisab amount, then you’d calculate 2.5% of your wealth and donate this to those less fortunate.
This is a simple snapshot and should not be used as a comprehensive guide. For more information and a more detailed look at Zakat, read MuslimAid’s Official Guide here.
Gold Bullion for Zakat
Have you ever thought about giving Zakat in precious metal bullion? The most ancient way of investing is by holding actual chunks of gold. A charitable gift of true value. If you’re looking to purchase any gold or silver bullion coins and bars for anyone, we have a huge selection available to buy on our website. Please contact our friendly team at Bleyer on 01769 618618 or email email@example.com for more information.