How should Zakaat be calculated on gold which is less than Nisaab, but one also has cash?

Answer

The Nisaab of gold is 20 Mithqaal or 87. 48 grams. If a person has this weight of gold, and no other Zakaat assets, then Zakaat must be paid. It could be paid either with one fortieth of the gold itself, or by obtaining the current price of gold, and paying 2.5% of it.

If a person has gold as well as other Zakaat assets (cash, silver, stock-in-trade), then he may add the price of the gold to the value of the other Zakaat assets and pay Zakaat on the whole amount.

If a person has gold less than Nisaab (87.48), and no other Zakaat assets, then Zakaat is not Waajib even if the price of the gold equals the value of the Nisaab of silver.

If a person has gold of less than Nisaab, but also has other Zakaat assets, and the combined total is equal to or more than Nisaab, then Zakaat is Waajib on the whole.