Zakat may be paid in kind

وَقَالَ طَاوُسٌ قَالَ مُعَاذٌ رَضِيَ اللَّهُ عَنْهُ لأَهْلِ الْيَمَنِ ائْتُونِي بِعَرْضٍ ثِيَابٍ خَمِيصٍ أَوْ لَبِيسٍ فِي الصَّدَقَةِ، مَكَانَ الشَّعِيرِ وَالذُّرَةِ أَهْوَنُ عَلَيْكُمْ، وَخَيْرٌ لأَصْحَابِ النَّبِيِّ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ بِالْمَدِينَةِ. وَقَالَ النَّبِيُّ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ: «وَأَمَّا خَالِدٌ احْتَبَسَ أَدْرَاعَهُ وَأَعْتُدَهُ فِي سَبِيلِ اللَّهِ». وَقَالَ النَّبِيُّ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ: «تَصَدَّقْنَ وَلَوْ مِنْ حُلِيِّكُنَّ». فَلَمْ يَسْتَثْنِ صَدَقَةَ الْفَرْضِ مِنْ غَيْرِهَا، فَجَعَلَتِ الْمَرْأَةُ تُلْقِي خُرْصَهَا وَسِخَابَهَا، وَلَمْ يَخُصَّ الذَّهَبَ وَالْفِضَّةَ مِنَ الْعُرُوضِ.Tawus said: Mu‘adh رضي الله عنه said to the people of Yemen, “Bring me small, or used garments in charity in place of barley and millet as it will be easy for you and useful for the Companions of the Prophet ﷺ in Al-Madina.” The Prophet ﷺ said, “Khalid has kept his shield and arms for Allah’s Cause.” And the Prophet ﷺ said to the ladies, “Give in charity, even from your ornaments.” The Prophet ﷺ did not differentiate between the Zakat and other kinds of Sadaqa in this respect. And so the women donated their earrings and necklaces. And the Prophet ﷺ did not specify that what might be paid in kind should be silver or gold.