Gold and silver are two precious metals which Allah ordained be used for much benefit among the creation. Due to their rarity and beauty, they have both been used throughout the ages and in different civilisations as currency, exchanging them for useful goods. They are particularly malleable as well as relatively easy to purify from their ores. Due to this and their unique and attractive colour and shine, they are efficient materials for coins and monetary pieces. An official governmental stamp for officiality can be conveniently administered, since, once they take on a particular form, they settle well and do not perish. This makes them ideal for fraud protection. For all of the aforementioned reasons, people have always sought to acquire them, and have adorned themselves and their homes in them.
Firstly: The Ruling of Charity on Gold and Silver
Charity is wajib for gold and silver if they reach their respective nisab and a calendar year passes. Consensus has been quoted over this by: Abu `Ubayd al-Qasim ibn Sallam, Ibn Hazm, Ibn Qudamah, and al-Nawawi.
Secondly: The Wisdom of Charity on Gold and Silver
The purpose of currency is that it has constant flow among sellers and consumers. A lack of activity and a stillness of this flow results in economic failure, as markets plummet and unemployment spreads. Charity is therefore a fard for any gold and silver capital that reaches the nisab and has a full calendar year pass over it, regardless whether its owner invests and spends it or not.
Thirdly: Hoarding Wealth
Hoarding wealth is rebuked legally if said wealth does not have the necessary charity paid on it. If this takes place however, then this is not the legally rebuked hoarding, regardless whether the wealth is stored away, buried, or otherwise. This is the position of the majority of jurists and scholars.
Fourthly: Charity on Jewellery  Huliyy is plural, the singular of which is haly, and it is a name for everything that one beautifies oneself in the same manner as gold and silver. Charity on jewellery ready for use
Scholars have differed over charity on jewellery intended for use according to two views:
The first: is that charity is necessarily payable over such jewellery. This is the position of the Hanafis, a position by al-Shafi`i, a narration by Ahmad, and a group of the Salaf. It is chosen by Ibn al-Mundhir, al-Khattabi, Ibn Hazm, al-San`ani, Ibn Baz, and Ibn `Uthaymin.
The second: is that is not wajib.  From the verdicts of the sixth symposium of modern legal charity matters (p. 378): The following controls should be considered when deciding not to pay charity on women’s jewellery: a) That the jewellery is used for mubah purposes, as charity is wajib on jewellery used in haram ways, like wearing jewellery in the shape of a statue. b) That the intention for the jewellery is beautification. If it is intended for storage or commerce, charity is wajib upon it. c) That the use is imminent and not distant in the future, like a man who stores jewellery for his wife so she may use it some time in the future. d) That the jewellery is suitable for adornment, as charity is wajib on jewellery that becomes unsuitable for beautification. Its calendar year resumes once a broken piece of jewellery is mended. e) That the jewellery used is not of an excessive amount, appropriate for its occasions culturally. If it is excessive based on what is common among the people, then charity is wajib over it. This is the position of the majority: Malikis, the correct position among Shafi`is, Hanbalis, and the majority of scholars. Haram jewellery
If the jewellery is of a haram nature, like gold for men, then there is charity payable over it. Consensus has been quoted over this by al-Sahfi`i and al-Rafi`i. Jewellery used for business
Jewellery purchased with the intention of commerce has charity payable over it, regardless whether it is for men or women. Consensus has been quoted over this by: Ibn Juzayy and al-Kharshi.
Fifthly: White Gold  White gold is a mixture between gold and palladium, with a ratio of 6:1. Six parts of 21ct gold for every part of silver, palladium, or rhodium, or a mixture of both. This produces 18ct white gold.
White gold is treated in the same way as yellow gold in all its rulings, including charity. This is the verdict of the Kuwaiti Zakat House, as well as the Permanent Committee.
Sixthly: Charity on Expensive Materials
There is no charity payable over expensive jewellery items that are non-gold and non-silver, like diamonds, pearls, rubies, and emeralds. This is regardless of how opulent the design is or how great its value.
Seventhly: Nisab for Gold
There is no charity payable for gold until it reaches its nisab, which is twenty weights-worth.  A mithqal is a dinar specially. Originally, it is a unit of weight for anything small or large. For example, mithqal dharrah is an atoms-weight. Consensus has been quoted over this by: al-Shafi`i, Abu `Ubayd al-Qasim ibn Sallam, Ibn al-Mundhir, Ibn Battal, al-Mawardi, and al-Qadi `Iyad.
Eighthly: Nisab for Silver
There is no charity payable for silver until it reaches its nisab, which is five awaq, equal to two hundred Dirhams. Consensus has been quoted over this by: Abu `Ubayd al-Qasim ibn Sallam, Ibn al-Mundhir, Ibn Rushd, and Ibn Qudamah.
Ninthly: Modern Measures for the Gold Nisab  There are two ways to calculate the nisab for gold and silver. The first is the classical method, which is evaluation through barley seeds, and the modern way by using grams. Benefit: “Evaluating the nisab for gold and silver is according to the pure substance of each, though minimal impurities are overlooked. This is due to their malleability, such that if they are completely pure, they would be too soft.” See: al-Sharh al-Mumti` by Ibn `Uthaymin (98, 97/6). Ibn Hazm said: “They [the scholars and jurists] have agreed that the mentioned weight is of pure gold, even though dinars, gold nuggets, and gold alloys have non-gold elements. They nonetheless have gold in the aforementioned weight, so charity is payable on them.” Maratib al-Ijma` (p. 35).
One weights-worth = 4.25g
20 weights-worth (the nisab for gold) × 4.25g = 85g
Therefore, whoever owns 85g of pure gold, it is wajib to pay charity on it.
Tenthly: Modern Measures for the Silver Nisab
One Dirham = seven tenths of a weights-worth = 2.975g
200 Dirhams (the nisab for silver) × 2.975g = 595g
Therefore, whoever owns 595g of pure silver, it is wajib to pay charity on it.
This is the decision of Ibn `Uthaymin and al-Qaradawi, and it is among the legal advice of modern charity symposiums.
Eleventhly: A Dirham's Weight Compared to a Dinar
One Dirham is seven tenths of a Dinar. Consensus has been quoted over this by: Abu `Ubayd al-Qasim ibn Sallam, al-Rafi`i, al-Nawawi, and Ibn Khaldun.
Twelfthly: Impure Gold
There is no charity payable on the portion of non-gold within what is generically identified as gold. To calculate this and to identify the portion of gold within it for which charity is payable, the following formula should be followed:
(weight of gold × gold content × price of gold (on the day charity is payable) × 2.5) ÷ 24
To this accordance was the verdict of modern legal charity symposiums.
Thirteenthly: Completing the Nisab by Joining Between Gold and Silver
Scholars have differed over whether both the amount of gold and silver should be joined together to reach the nisab. This is according to two views:
The first: is that they are calculated together in reaching the nisab. This is the position of the majority: Hanafis, Malikis, Hanbalis, and some of the Salaf.
The second: is that they are not joined together. This is the position of the Shafi`is, Zahiris, a narration from Ahmad, and a group of the Salaf. It is also chosen by Abu `Ubayd al-Qasim ibn Sallam, Ibn Rushd, al-Shawkani, al-Shinqiti, and Ibn `Uthaymin.
Fourteenthly: The Amount that is Wajib in Charity for Gold and Silver
If gold reaches twenty weights-worth, or if silver reaches two hundred Dirhams, a quarter of a tenth is wajib from either or both of them, which is 2.5%. Ibn Rushd, Ibn Qudamah, and al-Shawkani have quoted consensus over this.