How do I calculate Zakat on jewellery?
Zakat is based on giving 2.5% of total savings within a lunar year. These savings include cash in hand, income earned on investments, funds currently in bank accounts and precious metal objects (e.g. Gold or Silver) There is no Zakat due on platinum or palladium or other precious metals apart from gold and silver. Diamonds and gemstones (pearls, sapphires, rubies, corals, etc) are also exempt from Zakat.
What is hallmarking and why is it important?
It is very difficult to ascertain how much precious metal is contained in items of jewellery just by looking at it or touching it. There are some unscrupulous dealers who will try and pass off items of jewellery with low amounts of precious metal content as having high amounts. By using a hallmark, the exact purity of an items precious metal can be clarified and confirmed - so that consumers can be safe in the knowledge that what they are buying is a genuine and legitimate product.
