If your considering buying more dinar

[KramerDinar]

Found elsewhere - in the event of a LOP

The Dinar may well rise sightly vs the dollar (we’re talking 10-30% likely over 5 years not 99,999% overnight that some confused people fantasize about) though it’s not in Iraq’s interest to have a massively strong currency being a net exporter as they’ll then be uncompetitive with the other gulf states (Saudi Arabia, Oman, Qatar, Jordan, Bahrain, UAE, etc), who’ve all pegged their own currency to the $. Exporters don’t want very strong currencies because it makes their products more relatively expensive vs other countries selling the same product – why do you think China kept their value low via a dollar peg?

If people bought Dinar’s at market value (say $1 for 1170 Dinar’s) and exchanged them back at reasonable cost, they stand to lose very little from the RD (redenomination) itself as the value will be retained after an RD. Simple example : Instead of 1m Dinar’s at 1000:1, there will be only 1,000 Dinars at say 1:1. Both cases the $1k worth of currency is retained.

The real problem at the moment is the number of scamsters charging outrageous premiums – some of them over 100% for Dinar’s – on the back of the hype. For example, “Dinar Trade” (as hyped and “pumped” by dinarfaqs), charges $180 for 100,000 Dinar ($85 worth!) – that’s an outrageous 115% premium. 1m Dinar’s are sold at $1,220 (43% premium). On top of that they charge minimum $150 for every 1m Dinar’s ($854 worth) to change back.

So if you wanted 1m Dinar’s, you’d have to spend $1,220 to get $854 worth of it. After the RD, you’d still have $854 but they’d charge you $150 to change it back, leaving you with $704 worth of currency. 40% of your investment gets swallowed up on outrageous trading fees. The Dinar would need to appreciate over 60% vs the $ for you to just to break even after fees which could take years. The same amount of money put into a 5-year risk-free bond would make most people more money.

Even worse are those who buy smaller denoms. Eg, “Dinar Trade” would charge you $310 for buying 250,000 Dinars ($213 worth). They’d then take $150 minimum fee changing it back leaving you with just $63. Over 80% of your investment has thus been pocketed in exchange fees…

Many, many other Dinar sellers are pulling the same scam – hyping the Dinar (to the point of being a modern day “Tulip Mania”) and charging eye-watering fees, commissions and buy/sell spreads.

Sorry but many of the dealers, IMO, are crooks. They are paying to put their advertisements up on the exact same sites that are pumping the millionaire overnight scenario, knowing full well that it is not a possibility. JMO, but I think that goes beyond simply being unethical. People buying dinar are currency speculators, not investors – and many of them are naive. They are trusting in the words of people they have never met and may have listened to on a conference call and making financial decisions based on such without doing any homework on their own. Their naivety is what these pumpers are preying on. People don’t even stop to question why, if these pumpers are expecting a windfall and to become hugely wealthy, why are they trying to nickel and dime their followers through MLM’s, LLC’s, trust fund packages, hedge fund, sms texting services, etc? The fact that these pumpers and dinar dealers are trying to generate as much revenue as they possibly can while promoting this currency should be sending red flags in every direction.

The problem that I see with the holding of the currency long enough to see it appreciate is that we do not yet know how long they will leave the 000 currency set in the system before demonetizing it. It won’t remain legal tender forever.

In regards to their currency being ‘very undervalued’, it depends on what you mean by ‘very’. Right now they have a currency that is roughly covered 100% by gold and foreign currency reserves. So there is some room for increasing the currency value, but I believe their primary concern is stability of the currency at the moment and they are in a very good position at the moment to keep it stable.

[JuryPicker]

Dumbest thing I've ever read. From now on if it says KramerDinar it's not worth reading period. Iraq is a major importer not exporter. Oil doesn't count Kramer. Now if Iraq sold cheap junk to us like China does, you would have a point. But you don't. And you make it sound like making a profit is a dirty word. Unless it's you making a profit huh? Hog wash post.

[jeepguy]

good idea---not bashing---just a think ----if it even get the .10 that would be awsome , kawaiti is at .27or 1 kawiti for 3.63 usd. I think it will be more ---there is too much rush going into the area the money flow is really high getting the infrastructure going which means jobs,,,,getting the oil up and moving is more jobs,,,housing is going ,,,water,power,transportation, all is on the way--

[pokerplayer]

Thank-you. While I hope you are dead wrong, I appreciate your post. I myself believe Iraq MUST RV at a high rate (.86 USD or better ) to ward off the whales, your opinion is valid.

Have a great week, pp

[dinarck]

Well, I started you off with a +. Too bad it will quickly be swallowed up with a swarm of negs. Your honest opinion is what people don't want to hear even though it is probably more close to reality than the ludicrus claims that have been surfacing lately. Seems I will be sharing some negs with ya.

[pokerplayer]

Dumbest thing I've ever read. From now on if it says KramerDinar it's not worth reading period. Iraq is a major importer not exporter. Oil doesn't count Kramer. Now if Iraq sold cheap junk to us like China does, you would have a point. But you don't. And you make it sound like making a profit is a dirty word. Unless it's you making a profit huh? Hog wash post.

So a person posting there thoughts constitutes " Hogwash post"? I did like reading your posts till this one. You should value everyone's post, but not necessarily agree to all. Just take a look at yourself and ask " am I perfect? "

pp

[skepticaldinar]

Dumbest thing I've ever read. From now on if it says KramerDinar it's not worth reading period. Iraq is a major importer not exporter. Oil doesn't count Kramer. Now if Iraq sold cheap junk to us like China does, you would have a point. But you don't. And you make it sound like making a profit is a dirty word. Unless it's you making a profit huh? Hog wash post.

You should be negged for your comment... Try reading the opening sentence of his post!

"Found elsewhere - in the event of a LOP"

So a person posting there thoughts constitutes " Hogwash post"? I did like reading your posts till this one. You should value everyone's post, but not necessarily agree to all. Just take a look at yourself and ask " am I perfect? "

pp

Furthermore,he bashes the guy for "his thoughts" when Kramer clearly stated that he was just bringing someone elses post over and it wasn't his own. Not at all unlike JP though.

Edited May 1, 2011 by skepticaldinar

[KramerDinar]

Dumbest thing I've ever read. From now on if it says KramerDinar it's not worth reading period. Iraq is a major importer not exporter. Oil doesn't count Kramer. Now if Iraq sold cheap junk to us like China does, you would have a point. But you don't. And you make it sound like making a profit is a dirty word. Unless it's you making a profit huh? Hog wash post.

Ok, so just so I have this correct being that you are in expert in this matter; Iraq is a major importer of food, rugs, fabrics and blankets while a major exporter of petroleum, oil and gas. I can see where you gather them being a major importer because their imports alone are probably worth a fraction of what their gas export is, not even taken into account oil and petroleum. I would have to say as bad as you jumped at this post that you belong to one of the dinar dealers because only someone from that side would have taken this as personal as you did.

Edited May 1, 2011 by KramerDinar

[HopefulTxn]

good idea---not bashing---just a think ----if it even get the .10 that would be awsome , kawaiti is at .27or 1 kawiti for 3.63 usd. I think it will be more ---there is too much rush going into the area the money flow is really high getting the infrastructure going which means jobs,,,,getting the oil up and moving is more jobs,,,housing is going ,,,water,power,transportation, all is on the way--

I believe you are confusing the numbers. The .10 people are referring to is 10 cents per dinar (or 10 dinar to the dollar), not .1 dinar to the dollar. If it was .1 dinar to the dollar, that would give them an exchange rate equivalent to 1 dinar equaling $10 - not gonna happen.

[phazedoubt]

Thank you for this post. It is concise and succinct. i have been invested in Dinar now for a short time and i hold quite a bit. i did buy into the "pie in the sky" dream, but always held the thought in the back of my head that at most it may only double over a two year period. This is a reality that many seem to willfully ignore.

[War Eagle]

Being a net exporter---------------------------------------------what world is this guy living in?????????????????????Iraq exports NOTHING except oil---which is sold in dollars.A high value on their currency HELPS on importing,which Iraq has to import almost everything !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!