| As the U.S. dollar slides and concerns about rising | | | | 2002 to present March 2008 is: 16% |
| inflation and recession grow, gold and oil prices are | | | | The Ferrari is slightly skewed because of an |
| surging. And with spot gold hitting a record high of | | | | upgraded spider model. Nevertheless the increase |
| US$975.00 a troy ounce recently, and oil reaching | | | | from 2002 to present March 2008 is: 27% |
| $100 per barrel, some analysts say the dollar is | | | | The percentage increase of Gold is: 180% |
| going to continue to decline and the Euro and | | | | The percentage increase of Silver is: 292% |
| other foreign currencies will strengthen. | | | | The percentage increase of oil is: 294% |
| Investors and consumers tuned in to | | | | Now let us look at the value of the dollar as |
| Congressional testimony by Fed Chief Ben | | | | compared from 2002 to the present. The U.S |
| Bernanke. On Feb. 27, 2008 Bernanke hinted that | | | | Dollar as compared to the Euro in 2002 was |
| future rate cuts were on the table. He conceded | | | | about 1 to 1 ($1 = 1 Euro). Today $1 = 0.66 Euro. |
| the following day that he does not predict a | | | | That is a decline of approximately 51% to the |
| return to 1970s-type Stagflation. However, he did | | | | Dollar. That means that today you are getting a |
| mention the credit and sub-prime mortgages | | | | bigger bang for the Euro than the almighty buck |
| crises could cause some banks to fail. In addition, | | | | Which is precisely why people from overseas |
| the Labor Department announced initial jobless | | | | who use the Euro as their currency are flocking |
| claims jumped 19,000 to 373,000 and the | | | | to the United States to buy our goods at much |
| Commerce Department revealed the economy | | | | cheaper prices than they would have to pay for |
| came to a near crawl in the fourth quarter, | | | | the same goods in their native country. |
| growing just 0.6%. The Dow Jones Industrial | | | | Therefore when you compare the price increases |
| Average dropped 113 points to 12,581. | | | | of the commodities above with a foreign luxury |
| So what does all this have to do with luxury and | | | | exotic car, the increase in costs for the cars are |
| exotic cars? Allot! | | | | substantially lower thus making the purchasing |
| Let us examine some historical prices and facts | | | | power of the car more economically plausible. |
| as a comparison to market prices today. | | | | Many economists are saying that the value of the |
| 2002 Porsche Boxster: MSRP: $42,600 - $51,600 | | | | dollar will eventually stabilize and potentially once |
| 2008 Porsche Boxster: MSRP $45,800 - 59,000 | | | | again gain in value. When that will happen is |
| 2002 Ferrari 360 Spider Convertible: MSRP: | | | | anybodies guess. So what does this all mean to |
| $160,724 - $170,290 | | | | the purchasing power of a luxury/exotic motor |
| 2008 Ferrari F460 Spider Convertible: MSRP: | | | | car? The answer very simply is, buy a foreign |
| $206,063 - $216,375 | | | | luxury or exotic car here in the United States |
| 2002 Gold per oz. Low: $277.80 High: $349.30 | | | | while the percentage difference of the weak |
| 2008 Gold (March) per oz. $978.00 | | | | Dollar vs. the strong Euro continues to be an issue. |
| 2002 Silver Low: $4.23 High $5.05 2008 Silver | | | | As long as the price increases of the luxury |
| (March) per oz. $ 19.81 | | | | exotic cars remains lower than commodity values |
| 2002 Oil Price per barrel: $26.13 2008 (Feb) Oil | | | | listed above, the cost of buying a new or used |
| Price per barrel: $ 103.00 | | | | Ferrari or Aston Martin, etc. is like buying gold |
| Let us start with the Porsche. The increase from | | | | bullion at prices of gold from 2002 (in my opinion). |