The determination of the obligatory alms on precious metal assets involves specific criteria based on Islamic jurisprudence. The process requires assessing the weight and purity of the gold owned, then comparing its value to the current Nisab threshold. If the value of the gold exceeds the Nisab, a fixed percentage is due as a charitable contribution.
Paying this obligatory contribution serves as a pillar of faith and offers significant benefits. It purifies wealth, fosters socio-economic justice by redistributing resources to those in need, and cultivates a sense of communal responsibility. Historically, the system has played a vital role in mitigating poverty and promoting economic stability within Muslim communities.