The Islamic halal economy is on the rise. News reports estimate it will reach a market value of $7.7 trillion by next year, over double the valuation from 2015. Halal jewelry occupies a prominent place in these proceedings.
Jewels have long held value as cherished personal items, thanks to their utility as family heirlooms. In Islamic law, regular jewelry in gold, silver, diamonds, or gemstones is halal as long as you don’t use it for forbidden purposes.
In today’s tumultuous world, jewelry deserves renewed attention. As times get tough, more people have started viewing it as a viable investment option for financial security. It has the potential to soothe apprehensions amid rising prices and socio-economic conflicts.
When considering jewelry for investment, trading, or resale, following Shariah-compliant ways becomes paramount.
Investing in Quality, Not Quantity
Regarding halal jewelry, quality rules over quantity in almost every situation. Seeking pieces with good craftsmanship and attention to detail will prove valuable in the future. It applies whether you’re planning to get a wedding gift for your spouse or invest in personal finance.
Most halal jewelry seekers prioritize exquisite designs that are not loud and jarring. Seekers Guidance notes that Islamic law permits men and women to view jewelry as a means of adornment. However, they should avoid attracting undue attraction. So, over-the-top designs that make a “purposeful” display may not be the best idea.
While investing in halal jewelry, selecting a few standout pieces is a judicious approach. Modest designs that underline staying attuned to oneself are likelier to last the test of time.
Seeking Natural Jewelry Over Lab-Made Materials
The rarity and purity of diamonds and gemstones have long captivated people. In the halal jewelry market, being natural is salient. So, one can seek materials like gold or silver that have been around for generations. Or, investors can seek natural diamonds that stand out for their radiance.
Diamonds are halal in Islam. Many contemporary audiences prefer them for their elegance. Some unique diamonds, like argyle and champagne, have exquisite coloring. It makes them especially coveted.
The latest Knight Frank Global Wealth Report from the Middle East found that artwork topped the list of luxury investments made in 2023. Following close behind were color diamonds. As a positive investment asset, this section grew 8% in the last decade.
Many companies have shifted to lab-grown diamonds to meet the demand. In this situation, siding with those prioritizing natural origins can be soulful and reassuring.
According to Leibish, colored gemstones like natural ruby, tanzanite, and emerald emerge as gleaming choices.
However, the identification of genuine stones is often a concern for novice buyers. For example, you may want to know how to identify real Sapphire stones before buying them. The simplest answer is to ask an expert, and your jeweler may just know everything.
Natural gemstones align with the principles of sophistication, understatement, and natural origins. Depending on their preference, buyers can select jewelry or loose gemstones.
The Ethical Foundation of Halal Jewelry
The benefits of halal jewelry also come from a commitment to ethical business. Shariah compliance mandates that an establishment mustn’t cause damage to society or negatively impact the environment. Engaging with an establishment that does not prioritize ethics and sustainability is a concern.
In the 2024 Dubai Diamond Week, industry leaders emphasized sustainability and ethics in business. They noted that doing so can deliver a strategic edge. These principles have contributed to Dubai’s emergence as a diamond trading hub. The Government of Dubai announced that the country facilitated the trade of 120 million carats of diamonds in 2024. It included both rough and polished diamonds.
While seeking investment opportunities, purchasing ethically sourced jewelry is mandatory to be Shariah-compliant.
Being Mindful of Zakat
An absence of clarity around Zakat is a deterrent for investment beginners. The general rule does not entail any Zakat on diamonds and gemstones from the earth if you use them for personal wear. But you must be mindful of the guidelines for trading and reselling.
The Zakat Foundation of America states that a fifth of minerals extracted from the earth should go to Zakat, which is 20%. However, many jurists recommend a 2.5% Zakat rate.
The confusion arises because these two Zakat rates are vastly different. Sheikh Yusuf Qardawi, the renowned Egyptian Islamic scholar, brought some clarity. He estimated rates of 10% on minerals without substantial extraction effort.
Closing Thoughts
The Islamic finance sector has grown in the past few years. People are exploring investment options like jewelry, stocks, and mutual funds. More people demand financial security in a mercurial world. As a result, fresh opportunities are now accessible.
More Islamic nations are opening up to the idea of investments. Besides the Middle East, Singapore has also seen demand for Shariah-compliant financial planning. Diamonds and gemstones have an intrinsic appeal in this area. It is better when consumers can trust the origins and the labor involved in these products.
The appreciation for halal jewelry has also inspired a creative revolution. More designers aim at classic, elegant designs that inspire but don’t offend. Such jewelry should not expose the body to unnecessary chemicals or cause harm to the environment.
In that sense, it aligns with the core tenets of Islam: being considerate and mindful in everyday decisions.
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