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Why Is Iraq Buying Gold? And Is It Good ??


BetOnDinar
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I've been really excited lately about the news that the CBI has been significantly adding to their gold reserves. But, as I think about it, I'm not sure it's a good thing.

 

Here is my question:

 

If the CBI knew a revalue was coming, why would they buy gold today? Why wouldn't they wait and buy it after the dinar revalued and was worth much more? With a revalued dinar, they could get a whole lot more gold for the same amount of "money".

 

Think about that for a minute.

 

If they knew a revalue was coming, why would they buy anything now? Why not wait until their buying power had revalued higher?

 

And, it doesn't matter whether they bought the gold with US dollars, Euros, or the Dinar. Either way, they are essentially buying it with dinar.

 

If they bought the gold with Euros, then they had to sell dinar to get the euros, so it is really all the same. They bought the gold with dinar that is currently worth very little.

 

Why would they do that if they knew a RV was coming?

 

That question is making me fell a little sick - I have lots of dinar and I'm going to keep it. But, that thought kind of takes my hope away.

 

Here is an analogy:

 

If you owned some shares of Apple's stock, and you KNEW Apple's stock was for sure going to go up by 10,000% really soon, would you sell the stock today and buy gold? No way. You'd wait until the stock went up 10,000% and then sell it for a ton more cash ... which you could used to buy a whole lot more gold.

 

I believe the CBI knows if the dinar is going to revalue or not. If they know, why would they buy gold today? Why? It makes no sense to me unless they know it is not going to RV.

 

I hope someone can logically tell me why I'm wrong. I'm not trying to be negative. I'm just trying to assess the facts and figure out what it all means.

 

Thanks.

 

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A couple of things I think about is just how much gold is a "significant" amount but if they're purchasing from outside of Iraq, who would be accepting the Dinar?  Wouldn't this validate the currency?  I mean legitimizing it on the global market has to start at some uncontestable point, doesn't it?  I think that's exciting.

 

Also, I have to think they figure the gold itself will rise in value even though it has dipped recently.  That, in and of itself will offset the initial cost of Dinar as the rate now stands.  At any rate, they are investing in a hard backing for their currency.  We can't even say exactly what they are paying per troy ounce if purchasing in bulk, can we?  I suppose you have a point but I think, as for myself, I see the expenditure as a necessity if they have a particular target they must hit for reserve amounts (outside of oil reserves and "not quite finished" other commodities).

 

I'm betting there are a lot of DV members here that can add more.

 

best wishes,

crossfire

 

HAHA, Sandfly, you nailed my thoughts a good bit...Silver...you so smacked the fly! 

Edited by caughtinthecrossfire
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I have been wondering the exact same thing.  I know all of that gold backing the dinar will certainly make it a stronger currency.  But, like you say, if they are getting ready to rv why not buy lots more gold with the higher valued dinar?!  The only thing that makes sense to me is if they used dollars to buy the gold knowing the dollar is about to get the pee waddle de poo beat out of it very soon.  The same for the Euro.  The good ole USA is bankrupt and most of the European countrys are so buried in debt they'll see nothing but red for quite awhile.  The rumors of a massive change in our banking system going from fiat money to gold &/or other precious metals backed currencys may have something to do with it.  I hope I'm wrong but it looks like this is more of a long term investment everyday.  Either way, we'll make a great profit, I'd just kinda like to celebrate this year rather than later,  The biggest part of my physical life this time is behind me!  LOL!!

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if you do your research Gold has always been a solid backing of a countries currency and whos to say they bought it? what if they already had it? you think they are gonna tell us how much gold they actually possess your own setting your self up for disappointment. They are filthy rich.

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a few  have  in mind ,  that  the  gold  will be  put into  coin , and  into  small ingots ,  that  will sell on open  markets , this will bring about  the  problem  of  needing  smaller  dinar notes , {  if  we  go too the  article  where  the gold has been bought  , then  the article  where gold is about to be put on  markets  for sale ,  the gold  for sale is  broken down  to real small values  like 30.oo  too 100.00  dollar per  the size of  ingot  ,  or   gold  coin you wish  to have  in  your  pockets  ...  with this  deal ,  the  problem  of  paper notes  getting worn out  and torn   are not  dealt  with  here ....  and  another  item  folks  are  studying , with the purchase of the gold  , and  the  spreading around in smaller  amounts for sale ,   this will bring in the larger dinar  notes   off the streets ... if there is any left   but to be honest .  I thin the gold  buy  will be a  good thing ,  I believe ,  they  bought  the gold in to do both of those I spoke  of  , and  this will  help  In  the backing of the  dinar ,  give  it  the strength it  needs  to have  a value  above the  2  too 1  ratio`s  <------ this  part   with  the fact that  a day or so ago ,  the  article  of  how the dinar came  about in the early days  and  how  much  value  the area nations  around Iraq  , their  currency is worth against the dinar ,  Iraqi  people are starting  to  get  that  need to have their  currency back  to where it  had  been  ----  above  the  2 dollar  too 3  dollar mark  ,  <  --------  the pride in the  nations  currency  rides  here   ------ hope  that  helps     :peace:      jeep 

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I thought they needed gold to hold a value to their paper money.  Not like the USA that has gold, but has far to much paper printed.

They want their paper value supported by their gold. They also cleared away a lot of paper in the purchase.   :twocents::bugs:

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It is true that gold is a historically held economic move to bolster a country's currency.  I doubt the gold was purchased in dinars.  No country would want them as they are not tradeable on the international currency market.  The gold was probably purchased in dollars.  Iraq must reduce drastically, the amount of dinar that exists.  The only realistic way to do that is through a  redenomination.  Then with the amount of dinar reduced by 1000% they can do a small RV.

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IMO  we're going to bank big time . If it just goes to  .02 I can retire. From what I've read they already have reduced drastically what they have in circulation in country . In addition to  almost tripling their gold reserves since the 1980s , having way more US dollar reserves in their entire history , being  able  to supply 45% of the global demand for oil (all sweet crude ) , virtually no debt,  a projected gdp of 40x what it is now (based on standard charter), having over 15 foreign banks coming in the past few mos. (costing each bank at least 10 million dollars for an Iraqi banking license), hundreds of billions of dollars in frozen assets and the list goes . IMO  the IQD is going to sky- rocket but my that's JMO.

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Iraq will NOT  put any gold on the streets to be used as currency.this will violate an agreement made by the united states and OPEC many years ago.this is why you can only purchase oil with dollars.nobody gets any oil until it is paid in dollars and Iraq CANNOT purchase anything with oil.two countries did not sign this agreement Iran AND Lybia.GHADAFI was killed for this reason and we are trying to wipe out Iran.do you really think it is because they are trying to develop nuclear weapons?come on,see the real truth behind these things not what our shitass government tells you.ghadafi wanted to use gold dollars and just about had the whole middle east to go along with his plan,which in my opinion was a good one.what would this do to the worthless paper dollar?can you say collapse buys and girls?our government IS pure evil and manipulates everything in this world and tells us nothing but bold face lies.they lie to us and the world.it will catch up with them someday and the American people with have to pay a heavy toll.God help us all.

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Iraq will NOT  put any gold on the streets to be used as currency.this will violate an agreement made by the united states and OPEC many years ago.this is why you can only purchase oil with dollars.nobody gets any oil until it is paid in dollars and Iraq CANNOT purchase anything with oil.two countries did not sign this agreement Iran AND Lybia.GHADAFI was killed for this reason and we are trying to wipe out Iran.do you really think it is because they are trying to develop nuclear weapons?come on,see the real truth behind these things not what our shitass government tells you.ghadafi wanted to use gold dollars and just about had the whole middle east to go along with his plan,which in my opinion was a good one.what would this do to the worthless paper dollar?can you say collapse buys and girls?our government IS pure evil and manipulates everything in this world and tells us nothing but bold face lies.they lie to us and the world.it will catch up with them someday and the American people with have to pay a heavy toll.God help us all.

 

 

Someone has been paying attention.....

 

I posted about this only yesterday for anyone else who's interested........ http://dinarvets.com/forums/index.php?/topic/175599-islamic-gold-dinar-will-end-evil-paper-empire-us-nato-slavery-of-mankind/

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if you do your research Gold has always been a solid backing of a countries currency and whos to say they bought it? what if they already had it? you think they are gonna tell us how much gold they actually possess your own setting your self up for disappointment. They are filthy rich.

 

Interesting thought ... they might have had it all along?  That could very well be the case.

Not to worry, BetOnDinar, they're buying with oil, not dinar.

 

Another very interesting possibility I hadn't thought of ...

IMO  we're going to bank big time . If it just goes to  .02 I can retire. From what I've read they already have reduced drastically what they have in circulation in country . In addition to  almost tripling their gold reserves since the 1980s , having way more US dollar reserves in their entire history , being  able  to supply 45% of the global demand for oil (all sweet crude ) , virtually no debt,  a projected gdp of 40x what it is now (based on standard charter), having over 15 foreign banks coming in the past few mos. (costing each bank at least 10 million dollars for an Iraqi banking license), hundreds of billions of dollars in frozen assets and the list goes . IMO  the IQD is going to sky- rocket but my that's JMO.

 

I can retire if it goes to .02 cents too.  When I think about what you've written, I don't know how the dinar can't be profitable.

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  • 1 month later...

Iraq has said they bought the gold to sell to reduce liquidity of 35 trillion dinar

Try to reduce that amount of liquidity with a one dollar dinar

You would need 1000 times more gold

So they sell good now at around 1,700,000 dinar per ounce to liquidate

Or sell it later for 1400 dinar

How long will it take and how much gold would it take to liquidate 35 trillion dinar worth a dollar each

In order to raise the exchange rate they must reduce the money supply

The cbi created a method to do that

Sell gold ingots to the public

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Interesting thought ... they might have had it all along?  That could very well be the case.

 

Another very interesting possibility I hadn't thought of ...

 

I can retire if it goes to .02 cents too.  When I think about what you've written, I don't know how the dinar can't be profitable.

Man, you have a lot of dinar or don't need much more to push you over the top.

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