Explaining the Method of Zakah on Jewelry

The Shaykh : But how is it calculated? You estimate its value at the completion of the lunar year each year based on what it is worth. You do not consider what you paid for it, nor do you consider its value as new. You estimate its value as used, and then you pay out one-fortieth of it. One-fortieth is one part out of forty. That means, if the jewelry is worth forty thousand, how much is in it? It is one thousand riyals. If it is worth four hundred thousand, it is ten thousand riyals. This is simple, and praise be to Allah.