Nathan Evans

I need a badge....please

Smoke and mirrors........

They are junk. Sorry

I get this news letter every week and found this interesting. Not saying I agree but thought some of you may want to read this. WORLD CURRENCY WATCH>> July 17, 2011 What’s Better than Buying Iraqi Dinar By Sean Hyman, Editor, Currency Cross Trader Dear Nathan, The Iraqi dinar is one of those Internet sensations that have swept the worldwide web faster than the email that claims “You can see what looks like two moons when Mars moves really close to the earth!” (Astronomers have debunked that myth, by the way.) As you can imagine, as currency traders, my colleagues and I get questions about the Iraqi dinar all the time. And it’s not just us. Our friends in the money management business from Denmark, Austria and Canada all receive inquiries about the Iraqi dinar on a daily basis. So we felt it was time to set the record straight... >> Advertisement This "Side-Income" Strategy Could Help You Pocket Hundreds per Week We recently uncovered an unusual "side-income" strategy that could help you pocket hundreds of dollars a week. It has nothing to do with running a home business… selling stuff on eBay… stuffing envelopes or anything crazy like that. And surprisingly, it doesn't require much start-up cash - some folks have begun with less than $1,000. Of course, only you can decide if this strategy is right for you. For full details, click here. Not Just Speculative - a Shot in the Dark The short answer is as a currency investment, the Iraqi dinar is sorely lacking in the fundamentals that you want when you buy a currency for the long-term. You would be much better off simply buying gold or other exotic currencies for the long run (more on that in a moment). Besides being an oil nation (and let’s face it: there are plenty more desirable oil nations out there), Iraq is not what we would classify as a politically sound country. After all, they just put their new constitution together in 2005. And long-term growth? Stability? That’s all debatable in Iraq. But all that aside, what’s more important is you can’t trade the Iraqi dinar. The dinar is NOT one of the 60 tradable currency pairs in the $4 trillion Forex market. That means the big institutional players don’t want anything to do with this currency. If they did, you would be able to trade it. Instead, only the most speculative retail, individual investors are buying into this Iraqi dinar theory. That’s a bit concerning. It tells me that these retail investors have been sold a bill of goods - not a real asset with long-term value. In fact, I look at this currency more like a penny stock than anything else. It’s extremely risky, more like a shot in the dark than a long-term currency play. That’s why none of my colleagues recommend the dinar. We would much rather focus on the exotic currencies that have a chance of gaining in value - and can protect you should the dollar fall over the long run. What’s Better to Hold for a Revaluation As a currency, most speculators have been buying the Iraqi dinar because they are hanging their hats on a potential revaluation. Various websites have been claiming this revaluation will happen since 2004. But let’s assume for a second that Iraq did revalue their currency. That does NOT mean the currency will necessarily leap in value compared to the U.S. dollar. After all, “revaluing the currency” didn’t help anyone holding the Turkish lira a few years back. In 2005, the Turkish government revalued the lira from 1,350,000 lira into 1.35 lira. In other words, the government slashed six zeroes off the price of the lira. But in reality, the “new lira” was still worth the same amount. Suddenly, 1.3 million lira became 1.35 lira, yet it was still only worth a dollar. Now could the same thing happen in Iraq? Sure, anything is possible. That’s why I would much rather focus on more stable emerging markets with currencies that have a much higher statistical probability of rising in value. For instance, the Chinese renminbi... The “Trade of the Decade” According to the Real Experts At this year’s Global Currency Expo, five different currency experts recommended you buy and hold the Chinese renminbi for the next 10 years (that includes yours truly). (By the way, not one expert at our sold-out currency conference recommended you buy the Iraqi dinar - and these guys are the top of their fields.) So why buy the renminbi? It’s more than just the real possibility the Chinese will revalue their renminbi once again, or even let it free-float. The most respected financial minds in the industry are saying that the Chinese renminbi will eventually replace the U.S. dollar as either the next, or one of the next reserve currencies of the world. That means central banks which currently hold dollars, euros and gold in their coffers will be able to stockpile tradable Chinese renminbi instead. Scary thought, right? It would be a devastating blow to the U.S. dollar, and would force the dollar/renminbi exchange rate to plummet. Iraqi Dinar Won’t Help If the Dollar Loses Its Reserve Status More importantly, it also means the dollar will have some competition for pricing of the world’s commodities. If commodities were priced in anything but dollars, everything you buy on a daily basis would skyrocket in price. As a country, we would be forced to pay for real commodities with real assets (not just more printed dollars), like all other countries in the world do now. Buying the Iraqi dinar wouldn’t help you there. But buying the currency that commodities could potentially be priced in (like the renminbi) would offer some protection. For more on how to buy the renminbi, see Chuck’s article from our January issue of Currency Capitalist. Beyond the renminbi, I still say it’s not too late to buy gold. If you have long-term investable assets, why not buy a hard asset that climbs every time the dollar falls? With the talk of QEIII this past week, it just gives us one more excuse to buy gold. I can see gold topping $2,000 an ounce in the future. Again, no “revaluation” necessary... just the steady moving hand of the market. Bottom line: There are plenty of reasons NOT to buy the Iraqi dinar this year, and plenty of great reasons to buy renminbi or gold instead. So I say stick to the assets that have value, and leave the dinar for the speculators who don’t know any better. Have a Nice Day! Sean Hyman Editor, Currency Cross Trader

Lady, you are an idiot. It's people like this that makes me not want to visit the site evey day. I guess she thinks we are all dumb enough to believe her.

Please badge me......