Is the Iraqi Dinar a Good Investment?

[yota691]

Is the Iraqi Dinar a Good Investment?

by Sam Hopkins, Investment U Research

Wednesday, April 4, 2012

The State of Washington, among other responsible parties, is sick of folks getting burned on the Iraqi Dinar and other foreign exchange scams. So are we...

Amman, Jordan has some of the worst traffic I’ve ever seen. Swarms of cars zoom around traffic circles that were meant to create a street scene like London’s and, maybe, a sense of order.

The funny thing about this Middle Eastern capital’s hustle and bustle is how much of the movement is dominated by cars with Iraqi license plates. Land Cruisers, Infinitis, Benzes…

They’re nice cars – the cars of the people who could afford to get the heck out of Dodge at a time when even sitting on the world’s fifth-largest oil reserves couldn’t make staying worthwhile. Things have gotten awfully hairy over the past decade in Mesopotamia, and even with improvements, it’s one of the most dangerous places in the world.

Nevertheless, you may have heard or seen some recent hype surrounding Iraq’s currency, the dinar. Some heavy spenders are bullish on the dinar, considering it a bet on a young democracy with a major natural resource bounty. These loud voices in the online forex world claim to be riding a wave only a fool would miss.

Well, to paraphrase an old American saying, if you’ll buy the dinar, I’ve got a bridge in Baghdad to sell you!

The Sad Truth About Iraq’s Growth Prospects

Those heavy spenders are in fact shelling out big money to grab your attention on Google and other search engines as you check to see what’s up with Iraq.

They want to catch you at the door of the digital library before you read too much, because there’s a sad truth that undermines Iraq’s growth prospects.

That activity created by Iraqi refugees isn’t limited to Amman. Political and commercial centers around the region still buzz with Iraqi professionals, nearly a decade after the U.S.-led invasion that toppled Saddam Hussein’s dictatorship.

More than half a million Iraqis sought refuge in Jordan since 2003, and over twice that number fled to Syria. They’re shopkeepers and accountants, doctors and janitors. They’re also pieces of the economy that’s supposed to profit enough to make the Iraqi dinar a good investment. The U.N. reports that Iraqi refugees who returned home aren’t happy about it.

They’ve got some decent points to make, these forex hype artists: Iraq’s Central Bank recently cut the dinar loose from its peg of 1170 to the U.S. dollar. After being locked there since January of 2009, it’s risen a tidbit to 1160 per USD.

Iraq’s oil production is also back to pre-war levels, according to the CIA World Factbook. However the snoops’ encyclopedia doesn’t say whether those pre-war levels account for sanctions on Saddam before his ouster.

Iraqi petroleum output, essentially dormant because of danger these many years, is set to rise to 2.6 million barrels a day in 2012. Great news!

False Logic…

The salesmen have these points to make… but they often don’t make them. Instead, they lead with generalities and investment logic that isn’t logical at all.

“Don’t miss this opportunity to profit from Iraq’s developing democracy!” one insists.

Is that enough for you? Why don’t you invest in the island nation of Vanuatu? Its sandalwood-backed currency is the vatu and it’s a blossoming parliamentary democracy. To boot, its name isn’t synonymous with military disaster, horrific civil war and economic disorder.

Foreign exchange opportunists will gladly give you dinars for dollars… and some of them are so willing to do this deal, they’ll trade it to you in person.

In person! As in cash-on-delivery! Have you paid for anything at all COD in the past 20 years, much less a stack of money from a mess of a country?

Take a look at this chart:

Would this excite you if it were a stock? Granted, the downward movement here shows that the dinar is gaining strength against the dollar. And you’re right to note that it’s trading sideways, which can be a sign of a breakout.

But buying dinars really can be thought of as buying stock in Iraq, and Iraq’s a “company” with unstable leadership, no clear economic policy and plenty of rubble to deal with.

The State of Washington, among other responsible parties, is sick of folks getting burned on the dinar and other foreign exchange scams.

So are we…

Buyers of these dinars don’t know what they’re getting, even when the dealer has an easy-to-obtain U.S. Treasury Money Services Business certificate. What’s worse is that there’s no way you’ll be made whole if you get burned.

Foreign exchange means “exchange” in two ways: First, you’re exchanging one currency for another in hopes that the one you buy will appreciate in value against the one you sell. You can also bet the opposite way, of course.

Exchange is also a big word because currency moves on exchanges just like stocks do. You can trade some euros at the local bank for dollars when you come back from a nice trip, but you can’t do the same in dinars.

In fact, you have to be in Iraq to redeem dinars. Needless to say, we wouldn’t advise showing up in Baghdad with a suitcase of precious paper.

Instead, we advise looking into the many thousands of opportunities to make money from the world’s most dynamic economies that won’t leave you broke or dead.

Go long on fast-growing economies by investing money you know, in investments you know even better.

We’ll help you get around the obstacles along the way, in whatever form they take.

Good Investing,

Sam Hopkins http://www.investmentu.com/2012/April/iraqi-dinar-investment.html Which one of you Lopster help Sam write this!!

[Capn Geech]

It's really not. Don't waste your money.

Instead, I have an Alpaca Farm I'd like everyone to invest in.....

[zest4life]

Thanks Yota,

I found it interesting to read.

[Jean-Michel]

To the people who bought the dinar 8 years ago, they have already realized a profit on their original investment. The dinar they purchased was 4000:1. It's 1164:1 currently. Children in kindergarten are skilled enough in math to see that there was a profit made. For those past a kindergarten education, they've seen around a 343% increase in the value of their investment.

Good luck telling them they made a poor investment with their money. Do you have stock in one of your favorite banks that we should invest in instead?

From when I purchased my own dinar, the value has increased. Not much, but it has indeed been an increase. That's a profit and has already proven to me that there is something here.

Each of us will need to make our own decisions based on what we research. It's called due diligence. It's the best tool each of us has to determine our own course of action.

Edited April 7, 2012 by Jean-Michel

[BigFrankD]

To the people who bought the dinar 8 years ago, they have already realized a profit on their original investment. The dinar they purchased was 4000:1. It's 1164:1 currently. Children in kindergarten are skilled enough in math to see that there was a profit made. For those past a kindergarten education, they've seen around a 343% increase in the value of their investment.

Good luck telling them they made a poor investment with their money. Do you have stock in one of your favorite banks that we should invest in instead?

From when I purchased my own dinar, the value has increased. Not much, but it has indeed been an increase. That's a profit and has already proven to me that there is something here.

Each of us will need to make our own decisions based on what we research. It's called due diligence. It's the best tool each of us has to determine our own course of action.

How much would yOu have made if you bought gold or apple stock 8 years ago?

The IQD is a poor investment. High risk, low reward.

[skitealwedrop]

How much would yOu have made if you bought gold or apple stock 8 years ago?

The IQD is a poor investment. High risk, low reward.

Frank, I'm curious as to how much IQD you own.

[dinar_millions]

If you don't believe in the investment sell out and go on down the road!!!!

[easyrider]

If you don't believe in the investment sell out and go on down the road!!!!

agreed it blows my mind why all these lopsters are still here o wait they say theyll hold onto it for 5- 10 years well if they believe that then why are they still posting? they have a ways to go you would think this is why they need to stay in their lopster cage LOL its just too funny.

[smee2]

How much would yOu have made if you bought gold or apple stock 8 years ago?

The IQD is a poor investment. High risk, low reward.

You have been here less than a month? And you are telling us that the Iraq Dinar is a bad investment? Do you even have any or are you just here to agitate against the Dinar?

smee2

[Psych]

Maybe is my answer...guess we will see, huh.

[Jean-Michel]

How much would yOu have made if you bought gold or apple stock 8 years ago?

The IQD is a poor investment. High risk, low reward.

My reference above was not about a speculative investment that could have been made 8 years ago. Notice the wording. It's about a specific group of people who DID invest. Having realized a profit, they made a good investment.

Making a good investment is not about the final amount of profit generated from the investment. Broaden your definitions. I think that a good investment is one that generated profit. A bad investment is does not. This is my opinion only.

The reason I wanted to point out the profit made is that the general gist of the negative articles consistently fail to point out that there is already a group who has made a profit. Past tense action. Current time frame profit.

Here is the "what if" game taken to ludicrous lengths. Please don't take this seriously.

What if Dr. Who came for a visit, then allowed to me join as his companion. Once I have access to the Tardis and all of time and space, I could go back 8 years ago with $100 and...

And then the story becomes exceptionally ridiculous. If the Doctor came by for a visit, I wouldn't be thinking of money. I'd be more concerned with running away from whatever monstrosity that is currently thinking of annihilating time itself, and in doing so, save the entire Universe and Multiverse. That or I'd become moderately cognizant and realize I'm in the rubber room. That's what's behind the curtain of the What If game.

The original question was "Is the Iraqi Dinar a Good Investment". Then an article was posted which had no balance to the story. "But buying dinars really can be thought of as buying stock in Iraq, and Iraq’s a “company” with unstable leadership, no clear economic policy and plenty of rubble to deal with."

I have found that the best time to buy stock is exactly when those conditions are in place. The best time to cash out is after the rubble has been cleared away.

What I expect to happen (again, my opinion only), is that as the western powers-that-were-and-are-now-broke will find it increasingly hard to screw with the middle east. As the amount of bad screwing gets lessened and goes away, the natural brilliance that exists within the Iraqi people will quickly come forth. The rubble will be cleared away. Stability will occur as the crap will either float away or get buried. Leadership is the cure for politics and it shall be embraced.

A quick google search can bring hundreds of pictures of ancient sites and monuments built by the ancestors of the Iraqis. Amazing structures that we can barely do today. Heck, the entire planet is filled with these kinds of examples.

Of course, they were all built by Ancient Aliens. It's common knowledge. After all, the history channel told me so. "The History Channel. Where the Truth is history!"

[magawatt]

BigFrankD wrote:

How much would yOu have made if you bought gold or apple stock 8 years ago?

Read more: http://dinarvets.com/forums/index.php?/topic/112909-is-the-iraqi-dinar-a-good-investment/#ixzz1rNKEb0g4

I love words. but I am at a loss to describe the toxic self-righteousness I see here at in increasing rate. Shadenfreude comes close (enjoying the troubles of others) but the twist here is that doesn't encompass the fact that we all know the risk we have taken and therefore these oh-so-wise comments are irritatingly redundant and tiresome.

[Goldiegirl]

Yota, I don't know who neg'd you but I evened you out.

Folks, he brought the news....he didn't write it. Take it easy.

Thanks for posting this Yota.

[Argyll]

Everybody here is fully aware that this is a crap shoot. That is why it's always said " Invest what you can afford" It's a gamble....and almost everyone here has decided to play.

[Maggie123]

BigFrankD wrote:

How much would yOu have made if you bought gold or apple stock 8 years ago?

Read more: http://dinarvets.com.../#ixzz1rNKEb0g4

I love words. but I am at a loss to describe the toxic self-righteousness I see here at in increasing rate. Shadenfreude comes close (enjoying the troubles of others) but the twist here is that doesn't encompass the fact that we all know the risk we have taken and therefore these oh-so-wise comments are irritatingly redundant and tiresome.

I agree Megawatt,

Words are powerful. and they can be "toxic".

I can't understand why someone would "enjoy" putting someone else down.

Thank You For Saying It So Well.

Maggie

Edited April 7, 2012 by Maggie123

[Doctor Smith]

How much would yOu have made if you bought gold or apple stock 8 years ago?

The IQD is a poor investment. High risk, low reward.

I bought gold 13 years ago at around 300 per ounce. Everyone laughed. Now I bought the Iraqi Dinar.

Even if it turns out to be a bad investment I only have about 1% of my net worth in it. If they lop it I'll lose about half my money or more. I won't even notice. If it comes out at a dime I will just about double my net worth. If it comes out anywhere near a dollar. I'll be able to do whatever I want without any money issues.

[DinarBot]

% OF RISK = % OF RETURN

Checking/Savings Account = .1 - 2% (depending on deposit)

IQD = 0 - 1000% - (anywhere above or in between) - no min. purchase and we can take back what we don't want when ever we want.

Nothing to lose really. Except. It sits. Humans Can't buy a Snickers At Kwikee Mini Mart here. Well. Unless run by Ali Abu. Fair trade and all.

Edited April 8, 2012 by DinarBot