So, there we have it, 1st November is the date for the , and this is wholly down to differences in currency valuations. Since the vote to leave the European Union, a potential Brexit has seen the value of the pound tumble, and whilst this hasn’t enabled us in the U.K. to buy cheaper, it has helped our European counterparts save some serious Euros! This article will explain why a price increase in 2017 may become a reality.price increase . Or is it? The rumours are circulating again and not without good reason. The U.K. is an incredibly cheap place to buy your next
The table below shows 5 differentwith both their retail price and their Eurozone price equivalent.
|Description||Watch Reference||UK Retail Price||Euro Retail Price|
|Rolex Oyster Perpetual 39||114300||£4,150||€5,250|
|Rolex Datejust 41||126334||£6,900||€8,700|
|Rolex Day-Date 40||228235||£27,600||€34,600|
At the time of writing the GBP/EUR exchange rate is currently trading at approximately 1.115 euros to the pound, a rate that is regarded as low when looking at historical values, and especially when you look back to pre-Brexit levels of the high 1.20’s. So, what does that mean in forbuyers? The devaluation of the pound has meant that if your base currency is Euros, shopping in GBP has become significantly cheaper because you’re getting a lot more pounds for your euro! Let's take a look at the differentiation the currency changes have made between European and U.K. .
|Retail Price||Euro Retail Price||Equivalentprice from Euros||% Difference|
|Rolex Oyster Perpetual 39||£4,150||€5,250||£4,709||13.5%|
Despite a 10%price increase in November 2016, the price of is still approximately 13% higher on average in the Eurozone than in the . This means that the GBP/EUR currency rate would need to climb to approximately 1.26 euros to the pound for there to be an equal playing field across the and Europe. Why has this difference been allowed to happen? It’s likely that has left a period in order to let currency rates settle. They would not want to change their pricing structure only to see currency prices swing back the other way. However, we’ve seen a sustained period of lower exchange rates between the pound and the euro, and when look to implement a pre-Christmas increase, this would normally fall in November.
This gap in values between theand Europe also causes significant pressure on from its European AD (authorised dealer) network to close the gap, as Europeans flock to dealerships to buy their at a significant discount to what can be found in their own country. This results in a significant loss in sales revenue for European AD’s. Sources in U.K. AD’s have told us that they expect a price increase to happen, however regular buyers will know that a AD will rarely rule out a price increase as the potential of the same potentially costing an extra 5-10% next month can be a significant motivating factor to encourage buyers to act now, rather than put their purchase off for another day.
Unfortunately, if you don’t currently own a realise the hidden value in the on your wrist. Generally, a price increase is considered to be a positive factor and the primary factor that underpins the value of an investment in ownership. Why not check out our men's Rolex listing for something within your price range.and you’re looking to buy then a price increase would be bad news, edging the cost upwards or pushing your timeline to save a little further into the future. Ultimately though, this is part of the reason that hold their value so well. If you’re a current owner a price increase moves the whole market upwards and enables you to