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

QrizB

It seems like this is not so much a financial question as a family relationships one.

I think your sisters are being unreasonable, and taking advantage of you. They don't seem to have any legal grounds to demand gold; they might struggle to prove that the money wasn't a gift (as they presumably made a statement to your solicitor that it was, when you were going through the AML checks).

 But I don't know how close you are as a family and whether saying "no" to them will cause any wider problems.

MEM62

Cuticuraser said:

Hoenir said:

What did your sisters lend you cash or gold? Repay them in the same form. 

They sold their gold and gave me cash.

Then you give them the cash equivalent back.  The price of gold is irrelevant - they lent you money, not gold.

kimwp

Cuticuraser said:

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 

If you can afford to give it back, why did you borrow it in the first place?

ButterCheese

QrizB said:

It seems like this is not so much a financial question as a family relationships one.

I think your sisters are being unreasonable, and taking advantage of you. They don't seem to have any legal grounds to demand gold; they might struggle to prove that the money wasn't a gift (as they presumably made a statement to your solicitor that it was, when you were going through the AML checks).

 But I don't know how close you are as a family and whether saying "no" to them will cause any wider problems.

I agree.  They had the chance to not sell their gold, and to say "no we can't lend you money because we want to keep it for our gold investment".  But they chose to withdraw it and lend to you.  Unless there was any explicit (written) terms of you replenishing their gold sticks no matter what future gold prices might be then they have no right to demand repayment in line with current prices.

How they respond to this will tell you what sort of family they are, and what their intentions were when they lent you the money.  It seems to me that anyone who buys that amount of gold is acutely aware of what the market is like and probably knew this would happen and probably expected a profit at your expense.  But I could be wrong

mjm3346

If they sold the gold just to lend you the money and would not otherwise have sold and now is the time the market has reached a price point they would sell at then that is the value you should repay (plus interest).

Devongardener

There’s something not right here, if you used the cash from your sisters for the deposit, the lender would have demanded to see proof of where the funds came from, and if it was described as a gift rather than a loan it is fraud on your part, and probably your sisters if they declared so.

Cuticuraser

mjm3346 said:

If they sold the gold just to lend you the money and would not otherwise have sold and now is the time the market has reached a price point they would sell at then that is the value you should repay (plus interest).

So you want me to pay back market price plus interest? Are you on drugs?

Devongardener

Cuticuraser said:

mjm3346 said:

If they sold the gold just to lend you the money and would not otherwise have sold and now is the time the market has reached a price point they would sell at then that is the value you should repay (plus interest).

So you want me to pay back market price plus interest? Are you on drugs?

Why not with interest?  If this had been set up properly with a loan agreement you would have to pay interest.

kimwp

Devongardener said:

Cuticuraser said:

mjm3346 said:

If they sold the gold just to lend you the money and would not otherwise have sold and now is the time the market has reached a price point they would sell at then that is the value you should repay (plus interest).

So you want me to pay back market price plus interest? Are you on drugs?

Why not with interest?  If this had been set up properly with a loan agreement you would have to pay interest.

But they wouldn't have to pay any increase in the market price of gold as well as interest.

flaneurs_lobster

kimwp said:

Devongardener said:

Cuticuraser said:

mjm3346 said:

If they sold the gold just to lend you the money and would not otherwise have sold and now is the time the market has reached a price point they would sell at then that is the value you should repay (plus interest).

So you want me to pay back market price plus interest? Are you on drugs?

Why not with interest?  If this had been set up properly with a loan agreement you would have to pay interest.

But they wouldn't have to pay any increase in the market price of gold as well as interest.

Why not? We can speculate and make up as many clauses and indices to be included in the hypothetical loan agreements as we like - because they don't exist. Chuck in RPI and Brent Crude Futures too if you like.