Alms Tax: Exchanging or Melting Gold and Silver
Practical Laws of Islam as per the teachings of Ayatullah Sistani
Ruling 1919
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.
-Ayatullah Sistani, Practical Laws of Islam, Alms Tax (Zakat)