- Jul 13, 2012
- Reaction score
Good point, but a weak sterling makes gasoline, heating costs, and all imported things more expensive. And these effects are also felt downstream - its more expensive to feed the sheep, take their wool to market, spin the cloth...so the costs of cloth go up. Vicious spiral when the currency takes a hit. But it all depends on demand and supply too - all these costs cant be passed on ad infinitum, ultimately something gives. But if you smell a deal, jump for it - things are pretty wild out there! The trick it to buy when you feel the currency has weakened before it equally or possibly worse impacts prices. This usually happens at the beginning of the currency weakness cycle, before they have the chance to jack up prices (their cloth is booked already, and new cloth will force them to increase prices).I’m no international economist, so I don’t really know the ripple effects of this…but aside from travel costs to the US, does the dip in sterling impact their other costs significantly? I would imagine most of their cloth is British, along with their production costs and overheads, etc.