A Friend Lends Me Money from Planck's Constant

The day before yesterday one of my employees from my Bowery store called to say he needed more money to make a purchase of gold scrap. Gold had shot up more than $60 an ounce during the day and we bought so much scrap that we ran out of funds.

It was close to closing hour and I was out of town so I called my friend Charlie (a business owner who is on the Bowery as well) and asked if he could kindly lend me $3,000.00 until the next day. He said, "Sure, anytime."

I quickly called back my worker and told him he could make the deal. While he was testing the scrap for purity he remembered that he had more money in the safe.

We also sell silver and gold coins and bullion at our store and keep those sales moneys in a different drawer. Realizing that he had enough money, he called my friend to let him know that we didn't need his help after all.

So yesterday I went to Charlie to thank him for his gesture and drop off the following gift:

The American Eagle 2008 One Ounce Silver Proof Coin
Photo Credit: Lynn Coins

He wanted to refuse the gift, but I insisted. You may be wondering why I gave him this gift even though I didn't borrow any money from him. The truth is, he was ready to lend me the money and it is the same as if he actually lent it out. If I didn't call my worker to let him know that he could proceed with the sale, he might have let the sale go before remembering he had enough cash in another drawer. So in reality my friend's gesture alone was enough to make me money. And because I made money, it's only fair that I share some of the profit with the person who made it possible. If you're curious, the gift is worth almost a hundred dollars.

A few weeks ago, a store owner on my block needed $5,000 until the next day. Even though he is a competitor, I lent him the money at the request of a mutual friend. He paid me back the next day. Weeks have passed by and so far nothing in the way of gratitude, not even a thank you note.

Before any of my readers wonder do I always expect something when I lend out money, the answer is no. And my friend who offered to lend the $3,000 certainly did not expect anything in return. However, the $5,000 was lent to someone I barely know, as I said, on the request of a mutual friend. In that circumstance I certainly thought something in the way of gratitude would be forthcoming.

If that ungrateful borrower asks for a short loan of money ever again I certainly will not accommodate him.

As for lending money to relatives, I do not do that, see my article Should I Lend Money to Relatives?