Gold ETF: zakat and settlement

Investment Questions and Chats General Investment
#1

Assalamu Alaikum,

I know GLD is AAOFI certified. I had some questions if one is investing in this:

  • how would one determine the zakat that needs to be paid? Would it be similar to other equities?
  • as this involves physical gold, can we still assume a T+2 settlement if one is trading or how long should one wait for settlement to occur?

JazakAllah khair

#2

Assalaamu alaykum,

Zakat on Gold investments is 100% of its value. In terms of settlement, it is not permitted to have T+2 settlement in gold trading as per the AAOIFI guidelines.

Allah knows best

#3

Assalamu Alaikum @Mufti_Faraz_Adam

JazakAllah khair for all your help!!

You mentioned that it is not permitted to have T+2 settlement in gold trading. Do you know how the settlement for GLD (SPDR Gold Shares ETF) works? I know it is AAOFI certified but I don’t know the details. If we purchase shares in GLD, what time period do we have to wait for settlement?

JazakAllah khair

1 Like
#5

Assalaamu alaykum,

Can you share their AAOIFI certification please?

#6

Walaikum Assalam wa rahmatullah