Currency Arbitrage

Golden ice

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So, I figured that I'd post this since a lot of you girls on here are from the US and are into fashion.

I just bought a coat (Canada Goose) through an authorized online Canadian retailer I found through the Canada Goose website. I was able to buy the coat (which I saw online at Bloomingdales, on the CG site, and on all other US retail sites or stores for $795USD) for $795CAD. I wasn't charged the VAT tax or anything due to me being a US buyer. The cost ended up coming (after the currency exchange fee my credit card company charged me) to about $550USD. I called CG just to make sure the retailer was authorized and they verified that the site was selling authentic CG.

This must have to do with currency pricing, and the USD strengthening significantly, and that when the pricing was set for the retailers, the spot rates were different. I also figured that this must be true with Europe too. So I went onto Harrods, and found a Longchamp bag ($145USD at Bloomingdales and other US retailers) that translates to $90 something. The best thing is that if you're a US buyer, they eliminate the VAT tax there too.

It only works though for retail stores in other countries. When you buy it direct from the brand website, they'll give you the higher US rate that US retailers are charging, but if you buy it from a department store or online retailer based in another country, you'll get a great discount.
 
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