Is it necessary to pay Khums on gold again if its price increases?

Question

A question about whether Khums needs to be paid again on gold if its price rises after having been paid once.

Answer 1

Peace be upon you.

Ayatollah Al-Sistani (may Allah protect him):

First: Khums is required on the increase even if it is not sold, which applies to goods prepared for trade, such as items displayed for sale.

Second: Khums is not required on the increase even if it is sold at a higher price, which applies to items inherited or similar that were not subject to Khums and were not prepared for trade.

Examples include items received as gifts or acquired through possession that were subject to Khums but have been paid from the same money.

Third: Khums is not required on the increase unless it is sold, which applies to items acquired through exchange, such as purchases intended for possession rather than trade.

Source: Minhaj Al-Salihin, Vol. 1, Categories of Increased Value

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Ayatollah Al-Khamenei (may Allah protect him):

- The ruling on "selling necessities" is the same as that of "necessities that have been used," so if a house, car, or items needed by a person or their family were purchased with annual profits, Khums-free money, or inherited or gifted money, and the person sells them after the end of their Khums year for necessity, to replace them with better items, or for another reason, there is no Khums on the sale price or the profit gained from the increase in value. However, if they were purchased with profits that were subject to Khums and it was not paid, then Khums must be paid on the money used for the purchase, considering the depreciation of the currency, even if they are not sold.

- Increase in capital value

If the increase in value is due to inflation, meaning the currency has depreciated such that all goods are traded for more money, this increase is not considered profit and does not incur Khums.

If the value of Khumsable goods and items increases and they can be sold at the end of the Khums year, Khums must be paid on the increase after deducting the inflation amount. However, if there is no buyer until the end of the year, there is currently no obligation to pay Khums on the increase in value; rather, the increase is considered part of the profits for the year in which they can be sold.

If a person buys goods with Khumsable money intending to sell them, and then sells them, the amount exceeding the purchase price, after deducting inflation, is part of the profits, and Khums must be paid on what exceeds the annual necessities.

If a person purchases real estate or gold coins from their income during the year without the intention of selling, they must pay Khums based on its value at the beginning of the first Khums year, and the added value (increase in market price) does not incur Khums as long as they have not sold what they bought. After the sale, the increase in price, after deducting inflation, is considered part of the income for the year of sale.

Source: Educational Message, Khums, Khums on Profit (2), Sale of Necessities and Profit from Value Increase + Khums on Earnings (3), Increase in Capital Value

May you be successful in all good.