Borrowed money from sisters and not sure what is fair for all parties?

jackieblack

Keep_pedalling said:

They did not give you gold, they gave you cash, and unless you had an agreed interest rate they get back the same amount as they gave you.

This ^^^^

Between them, they lent you £34k. Notwithstanding that it was kind of them to help you out, how they raised the cash was their choice and should be irrelevant to any repayment terms IMO. However, the fact that one sister voiced terms prior to the loan and you went ahead and took the money would imply your agreement. Despite the other sister not specifying het terms, I don’t think it’s unreasonable for both sisters to receive the same.

Kim_13

I would say it is fair for the middle sister to be repaid at the market price at the date of repayment - she seems to have said she wanted to be repaid at the market price before any money was given to you, so you accepted this when you used her funds toward your deposit. From the figures in your post gold has gone up by £20/gram but it isn’t unfair for her to receive this on whatever you can afford by the end of July - she effectively loaned you her gold and could have gone out and sold it at this price had she not done so and seems to actually need part of her money for something. If she does not need the money semi-urgently then I have less sympathy for her and agree that her deadline is entirely unreasonable. Dates should be mutually agreed. There is the risk of price movements going forward so if you are now worried about what the remaining gold may cost in the future, it would be prudent to take out a loan and get it gone. 

The elder sister appears to have said nothing, doesn’t seem to need the money for anything in particular and is just jumping on the bandwagon, so I’d say terms need to be negotiated there. If she insists on being repaid at the market value then do so when it is in your interests and the price is closer to what you actually borrowed it at. If no repayment dates were stated then it was when you can afford it. Otherwise, agree a suitable rate of interest instead and start making repayments. 

th081

The fairness thing would suggest you purchase the gold in blocks you can afford and give to them that way they have not lost out and get the gold back. If gold drops or had dropped then again you purchase the gold and give back because they would it seems be holding that gold but for selling for you. At the end of the day they end up whole with the amount of gold they started out with. Yes you may lose out but it's important they don't given they only sold for you.

kimwp

It seems they are using you to protect/ benefit themselves against/by market fluctuations. If the price of gold had fallen, would they accept a lower repayment?

mjm3346

Return to them the same weight in gold* then add a reasonable amount in cash to cover what you would otherwise have paid to borrow money commercially - or if you could live with yourself and in the absence of any agreement tell them to go whistle for it.

(*or the value of the gold on the day you repay them)

Voyager2002

One point that these comments are missing...

The price of gold is currently very high, because of the turmoil in the Middle East. It is unlikely to stay at its present level for long. So it is extremely unfair to demand repayment now (at fairly short notice) with the amount to be calculated using an exceptionally high gold price.  

Cuticuraser

Voyager2002 said:

One point that these comments are missing...

The price of gold is currently very high, because of the turmoil in the Middle East. It is unlikely to stay at its present level for long. So it is extremely unfair to demand repayment now (at fairly short notice) with the amount to be calculated using an exceptionally high gold price.  

Thank you. This is what I feel and I think it’s unfair 

Cuticuraser

How can I plan and budget if the cost of gold keeps going up 

Devongardener

Maybe the sisters are demanding their loans back after seeing you in the Porsche you bought last month for £32K, I think I’d do the same, particularly if none of you had the foresight to set up a proper loan agreement!

Cuticuraser

Devongardener said:

Maybe the sisters are demanding their loans back after seeing you in the Porsche you bought last month for £32K, I think I’d do the same, particularly if none of you had the foresight to set up a proper loan agreement!

I’m happy to give it back but I can’t afford to give back at the market price of gold