Zakah stands as the third pillar of Islam after testifying that there is no god but Allah and Muhammad is His final Messenger and offering Prayer. The Prophet (peace and blessings be upon him) said, “Islam is built upon five pillars: testifying that there is no true god except Allah and that Muhammad is the Messenger of Allah, performing Prayer, paying the zakah, making the pilgrimage to the Sacred House (Hajj), and fasting the month of Ramadan” (Al-Bukhari).
First of all, we would like to stress that only the person who owns zakatable items is required to pay its zakah. Zakah is obligatory on those who have the nisab (minimum zakatable amount), which is about 3 ounces of gold or its cash value. Muslims should calculate all their wealth carefully. After deducting their personal and family expenses, they must give zakah on whatever is left. The rate of zakah on cash, gold, and silver is a minimum of 2.5 percent.
Dr. Monzer Kahf, a prominent economist and counselor, states: Zakah is a personal worship that must be done by each Muslim who fulfils certain conditions. Basically, having income that provides for some surplus (savings) above your expenses and wealth items that have stayed with you for a full lunar year. If these conditions do not apply to you, there is no zakah on you. Your parents, each one of them, would pay their own zakah.
The collector’s coins that you have are subject to zakah provided they reach the amount of nisab (US$ 1,000) and a full lunar year (354 days) has passed from the day the value reached nisab. Zakah is due at the rate of 2.5 percent and is repeatable every lunar year thereafter.