"Bad things can happen to good people" an old saw that is oh so true, believe me I know!

You are lucky to have a friend who had the class to offer the items as collateral in the first place. The fact that he's already told you to go ahead and sell them to recouver you funds, is all the proof you need that your friendship is on solid footing.

The fact that you didn't tell your wife before lending the money is another matter, which you should be concerned with more than anything else, because she is truly the injured party in all of this. Afterall, you have, damaged the trust she placed in you. Not on purpose, I'm sure, but we all tend to take those closest to us for granted sometimes. The old song "You always hurt the one you love, the one you shouldn't hurt at all" is so true.

Sell the stuff, replace the money, buy your wife flowers, take her out to a real nice dinner, and let her know that you won't ever do anything like that again without talking it over with her first.

Then get together with your frind and go fishing.