What happened to my money?

Bad news Chaps:

The Euro and the British Pound along with the Yen are rising against the U.S. Dollar and the results are beginning to really show in recent European auction prices!

Six to eight months ago, the USD price of a very good to excellent 250 GTE was around $60K today that same car has a market value of around $72K when adjusted to U.S. Dollars … the 308 GT/4 in very good to excellent shape was about $24K now it has risen to something in the area of $31K when adjusted to U.S. Dollars. Not a very good sign for those of us who have been looking around for a “good buy” on an older Ferrari ... my “good buy” may have already become a “good-bye!”

The British Pound seems to be the strong against the U.S. Dollar at the moment, with the Euro pounding the dollar at the other door. It now takes some $1.87 USD to buy one British Pound and $1.27 USD to buy one Euro. Even the Japanese Yen, which has been languishing of late, has moved stronger against the U.S. Dollar.

Many parts that owners need for older Ferrari are in the U.K. and priced in Pounds Sterling which is going to be a bit of a bite for those here in the U.S. when the conversion rate is applied to an order.

There is even strong talk of companies beginning to negotiate international contracts in Euros rather than U.S. Dollars as it is felt by many outside The United States that the slow growth of the U.S. economy and the rapid growth in deficit spending here will further erode the value of the U.S. Dollar in the long term.

For those of us who appreciate Ferrari it may be a long winter of rising parts prices and disparaging news on prices of vehicles.

Comments?

Best wishes

 

We're doomed....I'm buying a AMC Gremlin........

 

The USD is cheap because the Fed rate is a joke. When they raise the rate, the dollar with strengthen against the euro and the pound. Only problem is that when the rate goes up, the consumer consumption that drives the US economy will slow a bit. Its a tricky balancing act.

You're right, it is not a good time to buy using USD right now. Just save up and you can buy a better car when the time comes.

 

You talked me into it.
I will trade my 1 in 500 GTE for a 1 in 15,000 360 Modena before it is too late (for the Modena owner). Step right up, gentlemen !


thx
luke

 

The USD is only cheap if you are looking from 2002 onwards. People tend to forget that it became significantly over-valued in the late 1990s through 2000 as foreign money found its way into the U.S. equity market bubble. Remember, when the Euro was launched in on 1/1/99, it was worth $1.17. It proceeded to weaken vs. the USD until reaching a low point of approx. $0.83 in 2002 before regaining this ground and a little bit more since. I wouldn't count on the USD strengthening too much in the near future. Interest rates may rise but economic growth will moderate as they do and we continue to run a large trade deficit that throws USDs out in the currency market.

 

I was in London a month ago. The exchange rate was almost 2 to 1 and things cost in pounds about what they would cost in dollars, so imagine everything being twice as expensive. I was paying $18 for a pitcher of carling.

 

The Fed rate is a joke because that is what we have to do to keep from being wiped out by the stupid Chinese yingyang pegged to the dollar. I'm not sure where this dark alley will lead - but it's not going to the better parts of town. This nightmare is not over yet.
Jim

 

OK I'm lost what is carling???

 

That'd be brewski

 

I had lunch at Herrod's last month (ok, big mistake!) - plain chicken sandwich and an Ice Tea - $35. Ouch!