Question:

I own a ring with a diamond inside.  Do I have to pay zakat on the diamond?

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

In principle, precious stones and metals besides gold and silver are not subject to Zakāt.  However, if one has purchased precious stones with the intention of resale, then they will be subject to Zakāt.  In this case, they will be considered as stock in trade and hence Zakātable.

Therefore, if the ring you possess is merely for personal wear, you do not have to pay any Zakāt on the diamond.[1]
 
And Allah Ta’āla Knows Best

Mufti Faraz Adam
www.darulfiqh.com