All scholars agree that Zakah is obligatory on:

1. Gold and silver prepared for trading
2. Gold or silver used in impermissible ways

The difference of opinion arises only with permissible jewellery, such as women’s gold jewellery worn for adornment, or silver rings.

Some scholars compared worn jewellery to clothing and personal items, and therefore said no Zakah is due.

Other scholars held that gold and silver remain wealth, regardless of use, and therefore Zakah is still obligatory if the nisab is reached.