How is zakat on gold and silver calculated?

How is zakat on gold and silver calculated?

The method of calculating zakat on gold and silver differs by state. Generally, the calculation method is as follows:

 Zakat is required only if the total gold worn meets or exceeds the ‘uruf (local customary threshold, e.g., 500 grams).
 Formula:
 [Gold weight (grams)] x [Current gold price/gram] x 2.5%
 Example:
 Gold weight: 950g
 Gold price: RM174/g
 Zakat: 950 x RM174 x 2.5% = RM4,132.50
 
 b) Zakat on stored gold:
 Zakat is required if the stored gold weighs at least 85 grams.
 
 c) Zakat on silver:
 Whether worn or stored, zakat is only required if the weight is at least 595 grams.

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