Ruling 1919 — Alms Tax (Zakat)

If during the period of eleven months a person exchanges the gold or silver that he owns with something else, or he melts them, then zakat is not obligatory for him. However, if to escape giving zakat he exchanges them for gold and silver – meaning that he exchanges gold for gold or silver, or he exchanges silver for silver or gold – then the obligatory precaution is that he must give zakat on them.