Summary
The increase in gold prices has affected how Muslims calculate zakat, a mandatory form of charity, during Ramadan. The rise in gold prices has changed the threshold for who needs to pay zakat and increased the total amount owed for those with gold holdings.
Key Facts
- Zakat is a required charity in Islam, aimed at helping the needy and promoting fairness.
- Muslims are required to pay zakat annually if their wealth exceeds a certain threshold called nisab.
- The price of gold has nearly doubled since last Ramadan, affecting zakat calculations.
- The higher gold price means the nisab threshold, now equivalent to $15,000, has increased from about $8,000 last year.
- The standard zakat rate is 2.5% of eligible wealth.
- Zakat calculations for gold depend on the current market value of the gold, not its original purchase price.
- A gold’s purity is measured in karats, impacting its valuation for zakat purposes.
- Different Islamic schools of thought may have varying interpretations of zakat calculations.
