; Utah Securities Division, NASDAQ, and Better Business Bureau States Dinar Investment Is A Scam

[Adam Montana]

Apples and Oranges, bud.

There is currently no open market for IQD but that can change at any time, Iraq is in a completely different situation than Turkey, Inflation is low, demonetization is a very remote possibility, and the government is getting more stable all the time.

Is this investment a "sure thing"? NO. Is it a fairy tale? NO. The IQD is a real currency with a real chance of gaining value.

In fact, I am positive the value will go up. In my opinion, there is no gamble there.... the question is when and how much.

Of course, you're allowed to disagree... that's why this is the "Opinion" section.

[drox]

1. Liquidity

There is currently no active market for dinars. You can buy them but can you sell them? We surveyed several dealers and found that the difference between what you can buy dinars for and what you can sell them for is approximately 20%. This means that the dinar will have to appreciate by at least 20% before you could sell the currency back at break-even. It is worth noting that since the new dinar was introduced after the U.S. invasion it has only appreciated about 23% total.

2. Currencies with extremely low values are often demonetized

It is quite common for countries with currencies that have very low values compared to other currencies to demonetize their existing hard currency and issue new currency with new values. For example, the Venezuelans, another oil economy, demonetized the bolivar (trading at 2,150 to the USD) in 2008 and allowed currency owners to exchange 1,000 of them for 1 new bolivar.

The new bolivar now trades at 2.15 to the USD. This demonetization and revaluation process has been done over and over again in modern history. One of the risks here is the process required to get your hard currency dinars exchanged for potentially a second issue of new dinars at a new value. If there is an extremely illiquid market today there is likely going to be one then as well. It may be something that can only be done in Iraq which could make the process extremely expensive.

3. Inflation

Currently the Iraqi Central Bank is reporting inflation rates that vary, depending on the month, from -4% to +8%. If the government and economy become more unstable than they are at present, those inflation rates could skyrocket. Hyper-inflation destroys the value of hard currency. By the time the Turkish government revalued in 2008 the lira had inflated to 1.5million lira to the USD.

The bottom line is that this is an investment opportunity marketed by unregistered advisors to mostly unsophisticated currency investors. No risks are disclosed and past information is fabricated or modified to make the opportunity look better than it really is. This investment is a gamble at best.

dinarminer... you are in the early stages of research but I commend you for making the effort to do the research. You will find that it often takes you in circles in kind of a bi-polar emotional roller coaster ride sorta way. If you look for the negative aspects you will find plenty. If you look for the positive aspects you will also find plenty. It is neither a scam nor a get rich quick investment in my opinion. So... I try to throw those out of the equation. Although you will find "opportunists" or cons that will try to convince you otherwise and try to woo you away from your money.

Iraq has made gigantic strides in their sovereignty. We want them to run but they are like a toddler that just learned to walk in some regards. Every step is a shaky one. Many of us suffered through the crawl stage too long so we are happy to just see them walking! Many successful currencies have very tiny exchange rates. Japan and India are 2. Iraq has already gone through hyperinflation like you described and the currency and economy has become more stable over a period of time. They may or may not redenominate. We shall see. Even if they do there is opportunity for growth in their rate because they haven't even begun to touch the surface of growth opportunities there. They have 30 million people which is a very large population. They need everything but oil. Iraq will become a tourist haven someday. Look what happened in Bahrain. I promise you the Iraqi's have noticed. Be patient but don't spend more than you are willing to lose.

[THINK.....]

In my opinion, there is no gamble there.... the question is when and how much.

BINGO