What does 'Bred in the purple' mean?

Yes what Volatis said. The colour purple, esp Royal Purple was esp hard to mix and dye into cloth in olden days lol. So the cost of cloth this colour was exceptionally high, really only affordable by royals and nobility. Hence the saying.
 
It's one of those classic subjective comments made in the horse world. Often used as a put down or an overstatement.
 
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