The pound is way down against the dollar. Just to escape all the presidential political buffoons, US buyers might want to spend their autumn in the UK.
I wouldn’t consider a 17+% drop from the year’s high way down.
Having purchased and sold horses to and from England/Ireland, Europe exchange rates can and do fluctuate daily. So unless the buyer settles up quickly what they think they will be paying for the horse may go for or against them once funds are transferred.
Also it is important to remember, take into consideration is the fact that horses are sold in Guineas. A hold over from past times. A Guinea adds 5% to the purchase purchase price. So a horse sold for 100,000 Guineas cost 105,000 Pounds.
So that 17% discount is now down to 12%. Certainly if someone is spending big bucks a 12% discount can be considerable. IME people who have this kind of money to throw at horses don’t usually worry too much about this sort of thing.
I think the high end will be good, and the middle and low will be flat or poor. There are enough rich people in racing that the really good ones will bring good money, but not much of a market for anything else.
UK just says University of Kentucky to me.
The pound has hit a 31 year low against the dollar. Even they refer to it as “basement plumbing.”
Doesn’t seem to be affecting the sale a ton at the top level with 5 1-million gns+ horses including the most expensive yearling of the year. The average so far is down a bit though. I don’t think the doom and gloom people were expecting after the Brexit shake-up has really hit as hard as it was thought it would.
Who bought the high sellers…wouldn’t that be a better indicator of the brexit impact?(and I agree likely impact will be seen on lower end of the market …will be interesting to see if foal crop eventually declines but not sure how much it has recovered from the big 2009 crash).
The upper end will stay good despite Brexit and the pound. It’s the middle and the low end where you will see the impact.
[QUOTE=Palm Beach;8877894]
The upper end will stay good despite Brexit and the pound. It’s the middle and the low end where you will see the impact.[/QUOTE]
I agree with this but the consignor I worked for and at least a few others I talked about said no one would be spending any money (including the top buyers) because of the instability of Brexit and the pound but that doesn’t seem to be the case anywhere.
Brexit hasn’t happened yet. Why could it possibly hurt horse sales ?
[URL=“http://www.tattersalls.com/4DCGI/Sale/Live”]
http://www.tattersalls.com/4DCGI/Sale/Live
[QUOTE=Equibrit;8878153]
Brexit hasn’t happened yet. Why could it possibly hurt horse sales ?
[URL=“http://www.tattersalls.com/4DCGI/Sale/Live”]
http://www.tattersalls.com/4DCGI/Sale/Live
http://www.tattersalls.com/cat/october/2016/475.pdf 1.6M[/QUOTE]
Simply said, it was expected that the pound value against other currency would decline with the Brexit vote. Future national and international economic and monetary expectations are the driving force. This link might be helpful. So far, expectations have been negative in the international markets.
Also lots of concern after the poor recent sales at Tattersall’s IR. As Palm Beach suggested the middle to low end consignments are cautionary, as is evident in many markets worldwide. Last night I checked 1 pound = $1.28 US. That is approximately a 22% decline. Time for you to visit relatives and friends?
[QUOTE=Shammy Davis;8878645]
Simply said, it was expected that the pound value against other currency would decline with the Brexit vote. [/QUOTE]
Exactly this. My boss thought all the sales (at all levels of the market) would take a big hit with the pound dropping. I don’t think it dropped nearly as much as he or others that shared the same worry thought it would or the British buyers didn’t care and still spent money.
[QUOTE=Shammy Davis;8878645]
Simply said, it was expected that the pound value against other currency would decline with the Brexit vote. Future national and international economic and monetary expectations are the driving force. This link might be helpful. So far, expectations have been negative in the international markets.
Also lots of concern after the poor recent sales at Tattersall’s IR. As Palm Beach suggested the middle to low end consignments are cautionary, as is evident in many markets worldwide. Last night I checked 1 pound = $1.28 US. That is approximately a 22% decline. Time for you to visit relatives and friends?[/QUOTE]
The 52 week high for the Pound was 1.55. A 22% decline would peg it at 1.21
[QUOTE=Equibrit;8879003]
http://www.tattersalls.com/news_article.php?id=515[/QUOTE]
No surprise.
Although there is anxiety related to the market there some not too concerned. This June 2016 link acknowledges concerned thinking.
[QUOTE=Shammy Davis;8878645]
Simply said, it was expected that the pound value against other currency would decline with the Brexit vote. Future national and international economic and monetary expectations are the driving force. This link might be helpful. So far, expectations have been negative in the international markets.
Also lots of concern after the poor recent sales at Tattersall’s IR. As Palm Beach suggested the middle to low end consignments are cautionary, as is evident in many markets worldwide. Last night I checked 1 pound = $1.28 US. That is approximately a 22% decline. Time for you to visit relatives and friends?[/QUOTE]
Meant to include in my other comment. Interesting article on the subject and interesting well written comments. Thanks for posting the link. I shared it on a friends FB page.
