Is it just me or is buying the low demons a waste?

[cherishit]

I do not have any small denoms, but this is the reasoning to buy them...I'll use round figures and use $1,000 USD spent to buy 1 million 3-zero large denoms vs $3,000 to buy 1 million 1 or 2 zero small denom notes. The theory is that Iraq might give a shortened time frame to cash in the 3-zero notes (say 90 days) but not do that with the small 1-2 zero notes. If the rate comes in at 1:1, any and all currencies get a 1:1 rate if cashed in before the 90 days. The theory to buy the low denoms is that those notes will not be required to cash in within the shortened time frame. The speculator/investor that spent the extra $2,000 per million up front could then have an opportunity to ride the rate up. So, if you think that the dinar will go up at a later date by re-valuing more than once, and eventually be worth say 3-11 times more than the initial RV, you might want to spend the extra money up front. A $3,000 investment could yield $3-11 million dollars over time (at the rate of this example), as opposed to $1 million USD (if it RV's at 1:1). This is all speculation, since we don't know how this will play out, and is being talked about as a way to play more of the possible scenarios.

[phazedoubt]

I do not have any small denoms, but this is the reasoning to buy them...I'll use round figures and use $1,000 USD spent to buy 1 million 3-zero large denoms vs $3,000 to buy 1 million 1 or 2 zero small denom notes. The theory is that Iraq might give a shortened time frame to cash in the 3-zero notes (say 90 days) but not do that with the small 1-2 zero notes. If the rate comes in at 1:1, any and all currencies get a 1:1 rate if cashed in before the 90 days. The theory to buy the low denoms is that those notes will not be required to cash in within the shortened time frame. The speculator/investor that spent the extra $2,000 per million up front could then have an opportunity to ride the rate up. So, if you think that the dinar will go up at a later date by re-valuing more than once, and eventually be worth say 3-11 times more than the initial RV, you might want to spend the extra money up front. A $3,000 investment could yield $3-11 million dollars over time (at the rate of this example), as opposed to $1 million USD (if it RV's at 1:1). This is all speculation, since we don't know how this will play out, and is being talked about as a way to play more of the possible scenarios.

You are correct in your rationale, and about the fact that this is speculative, but the only problem is that anyone who has studied finance and monetary policy knows that it is impossible to affect certain parts of the currency and not others in a situation like some "Guru's" have been saying. If there is an RD, it will be an RD across the board. If there is an RV, there will be an RV across the board. Without going to far in to hard currency co-existing with an electronic banking system making it impossible, a 1000 IQD note will be the same fraction of a 25,000 IQD note regardless of what happens because, once again, monetary policy affects every note equally. To the posters question: i believe that it is solely hype. If you have purchased $100,000 worth of IQD (about 105,000,000 IQD with discounts for large purchase) in various denominations and you have sold all of your large notes at exchange rate + (substantial) premium, you have created a business model. Now in any for-profit business model, increasing profits is the ultimate goal. How better to do this than to either create the ridiculous rumor that lower denoms may not be affected by the RD or cash-in windows, or capitalize on a rumor that popped up on it's own from some other vector. i trade currency regularly on the forex and have studied monetary policy in depth. i promise that there is absolutely no additional value in holding lower denoms. i also regularly perform transactions well in excess of $10,000 an have never had my assets frozen or anyone in a black suite knock at my door. Remember that while your frame of reference for what is large is one thing, There are a number of people routinely move millions of dollars of cash every day. Don't get suckered in. Buy from a bank if you can. If you can't buy from the dealer with the best premium to service ratio and sit on it.

[Raleighwood]

I do not have any small denoms, but this is the reasoning to buy them...I'll use round figures and use $1,000 USD spent to buy 1 million 3-zero large denoms vs $3,000 to buy 1 million 1 or 2 zero small denom notes. The theory is that Iraq might give a shortened time frame to cash in the 3-zero notes (say 90 days) but not do that with the small 1-2 zero notes. If the rate comes in at 1:1, any and all currencies get a 1:1 rate if cashed in before the 90 days. The theory to buy the low denoms is that those notes will not be required to cash in within the shortened time frame. The speculator/investor that spent the extra $2,000 per million up front could then have an opportunity to ride the rate up. So, if you think that the dinar will go up at a later date by re-valuing more than once, and eventually be worth say 3-11 times more than the initial RV, you might want to spend the extra money up front. A $3,000 investment could yield $3-11 million dollars over time (at the rate of this example), as opposed to $1 million USD (if it RV's at 1:1). This is all speculation, since we don't know how this will play out, and is being talked about as a way to play more of the possible scenarios.

The only reason for an exchange period or timeframe is if they lop......even a gradual removal with two existing currencies is signs of a lop....unfortunate but that's how its gone down all the time.....

[snakes251]

Sooooo, when cash-in time finally does arrive, and I am asked to fill out where I purchased it from, how do I explain that I got all mine via multiple sellers, A.K.A. eBay? Just wondering...

[Kn0bL3]

I am buying them in all denominations. Of course I am not buying the small denoms in terms of millions or anything, but I figure a few bucks on ebay for a variety of denoms isn't too bad. I figure once the RV happens that I could use to smaller bills to cash-in under $10K and use that money to prepare, set up, and plan on how to handle the rest of my dinars.

[jray3775000]

Your right, I meant to include that.

I bought lower demons in case they had a short deadline to turn in ooo notes, then i would hold on to the lower notes waiting for the next revalue.

[Kooper]

on a related note...what about Uncirculated vs. Circulated notes?

When I first purchased, I was advised to buy the uncirculated. I was thinking to myself...an old bill will spend the same as a new one, but I did purchase the uncirculated ones...figuring maybe it had something to do with counterfeiting. I still think I overspent, but they sure look nice!

[Choppermike]

I bought nearly a million in lower denoms and the rest are 3 zero denoms. My motivation was in case of the speculative "cash-in" window theory. If we were given a 30, 60 or 90 day window to cash-in the larger denoms, I wanted to have the lower denoms so that I could hold them longer and hopefully see a rise in rates of exchange after the window closed.

[Doctor Smith]

The only argument I have ever heard is shipping cost!!!

Ok, yea....riiiiiiight, it takes a couple thousand extra to import 2000 bills.

The cost of making the currency. Instead of one 25,000 you have way more bills.

I don't have any lower denoms as the larger bills are already too expensive. But it might be a good idea in the event of a low rate and a limit on the time you can hold the larger bills.

[abutchbaker]

Yes it is for sure you will sitting on it for a couple more years wating on a RV.............

[estewart]

I've seen it stated on a dealer's site that the reasons the lower denominations cost more is because they are rare and hard to get.

I would not mind having a bunch of them. I would cash them in one at a time after an RV.

[Lanceman_1]

I just hope it RV's soon. I like my job but want to love my job

[snakes251]

I am buying them in all denominations. Of course I am not buying the small denoms in terms of millions or anything, but I figure a few bucks on ebay for a variety of denoms isn't too bad. I figure once the RV happens that I could use to smaller bills to cash-in under $10K and use that money to prepare, set up, and plan on how to handle the rest of my dinars.

I'm doing that too. I've got some of the larger notes, as well as a bunch of 500s, 250s, and 50s. If they lop the 25K and 10K notes, I'll at least have the smaller ones to fall back on. If it does revalue to a decent rate, I figure it won't matter how much I spend now. Still mindful of the fact I have rent and bills.

Like any investment, it's good to diversify--you just don't know what's going to happen.

[thatoneguy]

IMO, lower denoms are jacked up due to the fear and rumors, and dealers know this, so they are now preying on uninformed investors. Ask yourself, "does it make sense to pay for 1 item when for the same cost when you can acquire 3"??? Of course not! 3 million of anything is better than 1. Right?

[Doctor Smith]

IMO, lower denoms are jacked up due to the fear and rumors, and dealers know this, so they are now preying on uninformed investors. Ask yourself, "does it make sense to pay for 1 item when for the same cost when you can acquire 3"??? Of course not! 3 million of anything is better than 1. Right?

They are going to to be much more expensive to print. For example it would take 2,000 (500 Dinar bills) to make 1,000,000 Dinar. It would only take 40 (25,000 Dinar bills) for the same value.

If they force me to trade in my 25,000 bills before I want to sell, what's to stop me from then buying Dinar electronically on FOREX?

Buying lower Denoms could work for you or against you depending on what happens.

[sandyf]

I'm doing that too. I've got some of the larger notes, as well as a bunch of 500s, 250s, and 50s. If they lop the 25K and 10K notes, I'll at least have the smaller ones to fall back on. If it does revalue to a decent rate, I figure it won't matter how much I spend now. Still mindful of the fact I have rent and bills.

Like any investment, it's good to diversify--you just don't know what's going to happen.

My thoughts also.

I think there is a good chance there will be a short window to change the 3 zero notes. It is CBI policy to remove them and i can see thenm wanting to do this fairly quickly.

I think the statement referring to a gradual changeover is in respect of the existing smaller notes, they would need to be replaced in due course for the 3 language notes.

They are going to to be much more expensive to print. For example it would take 2,000 (500 Dinar bills) to make 1,000,000 Dinar. It would only take 40 (25,000 Dinar bills) for the same value.

If they force me to trade in my 25,000 bills before I want to sell, what's to stop me from then buying Dinar electronically on FOREX?

Buying lower Denoms could work for you or against you depending on what happens.

Very unlikely you will find a broker handling dinar for personal accounts.

Dinar Trade said they would do exchanges to lower denominations.

[DinarC]

YES, is the correct answer to your question. Right now, all Iraqi Dinar is a lessor value than Cottonelle toilet paper.

Post RV. All denominations will be tradeable at the price that Iraq revalues its currency for. You will however, pay more for the lower denominations right now particularly because someone somewhere said they will be worth more.

I'mmmmm not buying it.

Namaste!

Edited August 20, 2011 by DinarC