There is no authentic hadith that explicitly confirms or negates that there is an amount of zakah due on a woman’s jewellery. That is why jurists have differed concerning the hadiths which are narrated in this regard.
Dr. Monzer Kahf, a prominent economist and counselor states: “The idea of zakah is based on giving to the poor and the needy out of one’s wealth. Therefore, all items that are assigned for personal use are exempt from zakah. This includes personal clothing, books, residence, furniture, home appliances, and personal means of transportation, and so on. This is also why the condition of nisab exists. The condition of nisab means that a person who owns less than a given amount is not subject to zakah on the grounds that this amount is needed for emergencies and other precautionary spending. The amount of nisab equals 85 grams of gold which is approximately US$1000.
Since women’s jewellery is normally for personal use, it must be exempt from zakah. However, it is argued that women’s jewellery may be a form of wealth. The argument continues: What is the difference between keeping a thousand dollars as cash or keeping jewellery that is worth a thousand dollars that at any time can be liquidated?
Therefore, a moderate approach is suggested by many Shari`ah scholars as follows: If women’s jewellery is valued above what her peers usually wear, or if such jewellery is not actually being used but stored as a reserve asset, then such jewellery is subject to zakah because in this case it is either a surplus that reflects visible wealth or is actually treated by the owner as a reserve fund like the nisab.
This means that the amount of women’s jewellery that is in excess of what her peers usually wear or that is stored, rather than used, must be subject to zakah provided it reaches the amount of nisab as mentioned above.”