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Dollar Bill

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  1. Gold is up lately, at $1,350/oz that would calculate to $3,779,991,360 USD worth of gold reserves There are approximately 45 trillion dinar in circulation according to the CBI website, thus a "gold backing" of $0.000083999808 per dinar. Or in other words the dinar is approximately 10% gold backed - that is actually quite good compared to most countries.
  2. US retail banks and airport places like travelex usually have terrible rates, even if they don't charge a "fee", the fee is built into the big spread on their exchange rate. I just checked travelex site, their sell rate on Euros is 0.8108, the interbank market rate displayed on Kitco is 0.8905, that's a 10% spread! Many people mistakenly believe they are getting a fair rate just because there are "no fees". Almost anywhere in Europe, Asia, or the Mideast, even the worst airport exchange kiosks will give you a tighter spread than that. For some reason foreign exchange institutions in the US are very stingy on rates.
  3. Under normal circumstances if you buy/sell currency on a trading platform for a profit it is either short-term capital gains or long-term capital gains, depending on how long you held the position. Some options contracts are a split taxation of short and long-term. Why physical paper currency would be treated as ordinary income instead of capital gains I do not know. I'm inclined to think you could claim it as long-term capital gains so long as you had some proof of purchase date and price to back that up in case you were audited. Your ordinary income tax rate will vary based on your income level and deductions, anywhere on a scale from 0% to 37%, whereas capital gains is a flat rate regardless, so if someone had a low income to start with and only made a modest amount on dinar, they might be able to declare it as ordinary and not pay as much. NOT A CPA OR A TAX PLANNER, JUST MY 2 CENTS
  4. That was a very different time, when gold was an integral part of the US monetary system, with tens of millions of gold coins in legal tender circulation, so there was actually something to go after. Today very few people besides coin collectors and a handful of wealth investors have gold in any significant amount. They never went around looking for people's gold, and never prosecuted anyone for not co-operating (I think there was technically one case), which is why millions of pre-1933 gold coins still exist. It was basically an "honor system" of convincing people to turn their coins in, and I don't think Congress of our day would be so naive as to think that would work.
  5. I'm Bill, new to the forum, but not new to foreign currencies. As a coin dealer, I end up handling a lot of this stuff, especially when people have notes too old for the US commercial banks to accept. I've already found many of the articles here helpful. Good luck to everyone in your investments!
  6. So what's the exit strategy for rial holder when the old notes are going to be replaced?
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