Thread: Is the Dinar really a good investment?

Have a look at this chart of the USD (attached)

See the USD has been in virtual freefall since January 2002 and is heading lower. Surely since the IQD is being hyped as a great investment, it's value should be rising a lot against a falling dollar right?

Take a look at the historic list of exchange rates from the Iraqi Central Bank..

http://www.cbiraq.org/C.B.I.%20FOREI...20AUCTIONS.pdf

The IQD was initially at 1680IQD to 1USD. Now it is just 1234 and in a downtrend.

So, if the USD is falling faster than the IQD, yet the IQD is worth less and less USD, it doesn't take a rocket scientist to determine that the IQD is falling in value.

That's just the technical outlook. What about the fundamental? Would you think that a country that is basically destroyed, with millions of skilled people fleeing the country and those left behind engaged in a brutal civil war is a good investment?

You gotta look at owning the dinar as an open ended lottery ticket that may or may not payoff. eventually.
As far as recomending it as an investment, that i wouldnt do.

I think you're looking at the dinar all wrong. It's not what it looks like right now but what it could look like down the road. Some of the very best investments did not look all that promising at the out set yet turned out to net the investor huge returns. No one knows how the situation in Iraq will eventually turn out but the potential for great things are definately there. It just all depends on how well the the government of Iraq handles their responsabilities and what affect the actions of other countries have on the region. This may or may not be a good investment but only time will tell.

Well I guess I'm looking at it from a forex trader's point of view. At the moment I see it as a losing investment and there is no bottom in sight at the moment.

My two cents worth. Many bought from the pump and dump (they made a fortune by the way) and dreamed of get rich over nite millionaires. I bought a fair amount that I could afford to lose if it went that way. My thoughts from the start, HCL (ours or theirs by the way), security stepped up, oil wells pumping and then you see value and return for your dinar. It will come and I think first quarter 08 will bring some very good and welcome news. (JMO) Hope everyone has a great evening.. Got to get a fresh cup and maybe a cookie..