Q: I would like to know how should zakaat be calculated on the Mandela Coin. It was bought for about R4,000.00 and now the value is about R20,000.00. Iit contains one ounce of gold. Will zakaat be paid on the gold content or the value of the coin?
A: Zakaat has to be paid on the gold content of the coin, not on its inflated value. It is clear that the substantial value of this coin is not due to any increase in the gold price; instead it is the name the coin bears that enhances its value, as well as market demand. That is not a criterion for zakaat.
And Allah Ta'ala knows best.
Mufti Siraj Desai
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