Are individuals who buy and sell 9999 gold rings with each other subject to penalties?

Ms. Nguyen Hai Hoa (35 years old, Cau Giay, Hanoi) asks:I borrowed 25 taels of 9999 gold rings from a close friend and the repayment deadline is approaching. However, recently, buying gold at licensed shops has not been easy; some places require long queues, while others announce they are out of stock.

Given the situation, I plan to buy 9999 gold rings from friends and family members to pay off my debts in time. However, I'm quite worried because I know that the business of selling gold rings is a conditional business activity.

So, if I buy a 9999 gold ring from a friend or relative (a transaction between individuals, not for business purposes), will I be penalized? Will the seller be penalized?

Lawyer Nguyen Viet Hoang Son (TAT Law Firm) answers:To answer this question, it is necessary to clearly distinguish between gold trading and private civil transactions.

According to Decree 24/2012/ND-CP, amended and supplemented by Decree 232/2025/ND-CP, the State strictly manages gold trading activities. Administrative penalties are primarily directed at illegal gold trading activities, especially by organizations and businesses operating without licenses.

Meanwhile, business activity is understood as the continuous performance of one or more stages, from investment and production to product consumption, with the aim of generating profit. Personal civil transactions are property relationships arising between individuals, which are individual in nature, not professional in nature, and not aimed at generating regular profit.

Ms. Hoa's purchase of gold from friends and relatives to fulfill her debt repayment obligations is a civil property transaction, not a business activity.

According to lawyer Son, in this case, neither the buyer nor the seller will be penalized for the following reasons: It does not fall under the scope of gold trading activities: Current law only penalizes the buying and selling of gold within the framework of illegal business activities.

For 9999 gold rings (belonging to the category of jewelry and handicraft gold), if it is merely a transfer of personal assets to settle debt obligations, and not a purchase or sale at unlicensed stores, then it is not subject to penalties.

Right to dispose of personal property: According to the Civil Code, individuals have the right to possess, use, and dispose of their lawful property. The act of relatives selling the accumulated gold to help Ms. Hoa pay off her debts is entirely in accordance with the law.

Important considerations to avoid legal risks.

Although no administrative penalties may be imposed, lawyers still recommend that buyers note a few points to ensure legal safety: Clearly confirm the transaction: A handwritten record or contract for the purchase/transfer of gold between individuals should be drawn up, clearly stating the quantity, type of gold, the purpose of the transaction as debt repayment, and a commitment that the gold has a legitimate origin.

Keep proof of origin (if any): If the seller still has the previous gold purchase receipt, a photocopy or attachment should be made to prove the clear origin, avoiding risks associated with gold of unknown origin.

Gold quality verification: Since private transactions do not involve VAT invoices or specialized measuring equipment, both parties should go together to reputable gold shops to verify the gold's purity before payment.

In summary, if individuals buy and sell 9999 gold rings with each other solely for civil purposes, not for business, and not at illegal gold trading establishments, they will not be subject to administrative penalties.

Ms. Hoa and her family can rest assured, as long as the transaction is conducted transparently and carefully.