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Is Zakat applicable to diamonds and diamond jewelry? It depends upon the purpose for which they are bought. There could be two different purposes for the purchase of diamonds i.e. Investment and personal jewelry.
According to a unanimous decision of all Muslim scholars, diamonds and other precious stones are exempted from zakat. Yes, there is no need to pay it on diamonds.
On the other hand, if any jewelry made of diamond also uses gold; for instance, a bracelet of the diamond whose base is of gold, then zakat is to be paid on that gold.
Diamonds kept for Investment
If one is trading in diamonds i.e. buying and selling it, then one has to pay zakat over it.
Diamond is a valuable stone and many people buy it for investment purposes. So if any Muslim buys a diamond with intention of investment, then he is liable to pay it.
Zakat is not payable on diamonds & precious stones unless set in gold or silver, then zakat is obligatory on the weight of gold & silver
— Islamic Investing (@Islamicbanking1) July 9, 2012
The same concept is applied to the land as well. There is no Zakat if the land is owned for the purpose of building a house or for use. However, if the intention of keeping the plot of land is to sell it in the future, you will have to pay Zakat at its market value each year.