I was talking to my brother today and he mentioned that a guy from work was going around saying that he had some "inside information" that the Iraqi dinar was a great investment, because it's currently devalued, and IF Iraq emerges from the present turmoil as a strong independent state, then people who own dinars will make a huge return on their investment. My brother did some cursory research, and decided to buy $300 worth. He was smart enough to go to a chartered bank, rather than through an internet broker, so he's reasonably certain that his dinar are not counterfeit. He said that he considered it like a night at the casino, and if he makes some money, great, and if not, he considered it a lesson learned. Nothing ventured, nothing gained, I suppose. I did some googling, and found some information both pro - Bet On Iraq - and con (kind of) - Iraqu Dinar.org . It seems that the idea has been floating about since 1993, when the new currancy was issued. I have no interest in "investing" myself (I'm not a gambler!), but I'm curious as to how wide-spread and risky this scheme is. Has anyone else come across this UL? What do you think are the chances that there is any money to be made? Are there any other world currencies for which similar claims are being made? -------------------- lynne"insert appropriate punny phrase here"janet
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Thread: Mirandas Dinar Views
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29-10-2007, 08:16 PM #1
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Mirandas Dinar Views
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29-10-2007, 08:17 PM #2
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re:Iraqi dinar$ a good investment?
there's a lot of money to be made on the foreign exchange market. heck look at the canadian dollar, a few short years ago, it was at 60 cents now it's at 90. that's a 33% increase. say you had invested $1000 US into it back then, and sold it back now, it would haev cost you roughtly $700 and you'd get back around 900 now. that's a $200 profit
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29-10-2007, 08:23 PM #3
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Back in 1862
Back in 1862, a lot of people probably thought that confederate dollars were a good investment.
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29-10-2007, 08:25 PM #4
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Iraqi currency a couple of years ago
I have a vague memory of my dad investing some money into Iraqi currency a couple of years ago.
I've always kind of laughed at it behind his back but I can't really laugh all that hard because he's 45 and retired and has a ton of money and has always done stuff like this.
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29-10-2007, 08:26 PM #5
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With the Dinar
That looks good, but it's really only a 29% return over 42 months, or 7.2% APR. (the last time it was that low was January of 2003). A simple index fund (say, S&P500) beats that easily over the same period (52% return), with a lot less risk.
With the Dinar, you're gambling. If Iraq suffers inflation, or worse, hyperinflation, you're the proud owner of worthless currency that no one will buy from you. You're also gambling that the US Dollar (or your currency of choice) won't be stronger. I'd consider it a very high-risk investmen
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29-10-2007, 08:28 PM #6
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You're also gambling
You're also gambling that Iraq won't dissolve into civil war and the Dinar won't plummet further.
Peter Maas wrote in his book that during the Balkans war a hotel cost over a million in local currency, but that it was only about $50 USD.
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29-10-2007, 08:31 PM #7
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Conditions in Iraq being
There's money to be made in Iraqi dinars--if you're one of the unscrupulous retailers trying to pass them off on novice American "investors."
Conditions in Iraq being what they are, the trade in Iraqi dinars is a wonderful piece of foreign exchange nostalgia. There's no fancy electronic transfers or anything like that. Retailers get their Iraqi dinars by knowing someone (who knows someone, who knows someone...) who has a contact in Iraq. That contact smuggles Iraqi dinars out of the country in suitcases as cold, hard cash, and passes the physical bills on down the supply chain with all the risk and markup that this implies. That's a lot of markup.
In fact, when this bundle of Iraqi dinars reaches you, the novice prospective investor (i.e., the mark), it typically does so at a markup around 30 percent. That's absolutely ridiculous. This extraordinary markup really can't even be explained by all the risk of carrying physical cash out of Iraq or all the middlemen that that involves; it's simply a rip-off passed off on unsuspecting buyers who have little or no experience in foreign exchange.
And then, supposing you buy these Iraqi dinars, you're left with little pieces of paper with numbers and Arabic writing on them. They also have pretty pictures of men in turbans and minarets and trees. And they're totally worthless outside of Iraq.
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29-10-2007, 08:33 PM #8
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Since banks won't exchange
Since banks won't exchange your Iraqi dinars for real money, the idea is that you simply put the physical bills away in a vault somewhere until, one day far off in a magical future when Iraq is a shining paradise that has reached the Second Stage of Democracy, your bank decides to start exchanging your Iraqi dinars for hard currency at some rate more favorable than the outrageous price at which you bought your dinars in the first place. Right.
For comparison's sake, most other Middle Eastern currencies are totally worthless and unconvertible outside of their countries of origin. They show every indication of remaining so indefinitely. And those currencies come from countries that aren't completely falling apart.
The trade in Iraqi dinars is basically a pyramid scheme. You can make money in
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30-10-2007, 03:54 PM #9
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So far, your brother, your father and a couple of friends with a dodgy financial advisor have invested in a currency that you believe is a waste of time. You have put forward strong reasons to let members of this forum know this. Not sure why but thank you.
This isn't so much an investment as 'currency speculation'. It is clear from your posts that you have been unable to separate an investment from 'a speculation'. You are not up to date with current information and have little real understanding why people have chosen to speculate on this currency.
Dinars are sold at Auction through the Central Bank of Iraq five times a week (Sunday through Thursday) and the Bank sells to brokers within Iraq as well as brokers from Kuwait, Jordan, Dubai and other ME Countries. Walking out with a dodgy suitcase full of cash may have happened a few years ago, but not so much today.
Dinars are available to buy through High Street Banks and are available to exchange for other currencies of choice through High Street Banks in many Countries, but not all.
You have taken the time and trouble to deliberately seek out a dinar forum to let us know your views on a currency you have little real knowledge of. Odd? Why bother?
May I suggest you take the time and trouble to bring yourself up to speed with where the dinar and this speculation is at presently instead of bringing up old information that is no longer valid and your queries will be received and answered appropriately.
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31-10-2007, 12:30 AM #10
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Amanda, I have Dinars over two years now and can sell them at several locations and make a tidy profit. That said, I agree with seaview, why bother coming to the forum and try to make the folks that took a risk and invested a bit look a little (or a lot as you so aptly put it) stupid? Just curious. As one that has followed the investment, read hundreds and hundreds of post, pro and con on Dinar, I consider it a learning experience. I could not and did not get any better education at college concerning the world and its fianancial markets. Hope you stay on board. Look forward to you jumping in and keep us honest, so to speak. Warrior..
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