Maliks Muwatta Book 17, Hadith Number 11.

Section : Things on Which there is No Zakat, in the Way of Jewellery, Bits of Gold and Silver, and Amber.

Yahya related to me from Malik from Nafi that Abdullah ibn Umar used to adorn his daughters and slave-girls with gold jewellery and he did not take any zakat from their jewellery.

Malik said, “Anyone who has un-minted gold or silver, or gold and silver jewellery which is not used for wearing, must pay zakat on it every year. It is weighed and one-fortieth is taken, unless it falls short of twenty dinars of gold or two hundred dirhams of silver, in which case there is no zakat to pay. Zakat is paid only when jewellery is kept for purposes other than wearing. Bits of gold and silver or broken jewellery which the owner intends to mend to wear are in the same position as goods which are worn by their owner – no zakat has to be paid on them by the owner.”

Malik said, “There is no zakat (to pay) on pearls, musk or amber.”