Is Zakat on gold calculated based on the selling price or the purchase price if it reaches the nisab?

Zakat is obligatory on jewelry intended for trade or investment if it reaches the nisab, which is approximately 85 grams of pure gold. The amount of Zakat is a quarter of a tenth (2.5%). It is permissible to pay Zakat in money by valuing the gold at its selling price at the time Zakat becomes due, not its purchase price. It should be valued at its current price as used gold, not new. As for jewelry intended for permissible personal use, the majority of scholars hold that Zakat is not obligatory on it, and this is the fatwa given. However, it is more cautious to pay Zakat on it to avoid scholarly disagreement.