Basic Forex Question

[ddyal]

Assuming the IQD becomes Internationally tradable and on Forex. Is Forex a better vehicle to invest in the dinar, post RV, if we feel the dinar will increase in value over several years than say buying the newest currency and holding it or funding an Iraqi bank account? Is just buying Dinar on Forex and holding it for a year or two, until it's value goes up, a worthwhile strategy? Thanks for your help.

[tyron]

It is very possible that in a few years time or even less, something very horrible is going to happen to all fiat currencies. Why don't you buy precious metals, especially silver?

[PA10]

I agree with Tyron. Long term, I like US Silver Coins VS Bullion because it's still money and subsequently very liquid. Personally I ascribe to David Wiedemer's guidance in his book 'AFTERSHOCK' specifically - "buy gold and silver with the understanding that in spite of the current run up on silver, it will get hit harder than gold when commodities slide and the global economy slows, particularly China".

Also - he recommends inverse ETFs (bonds and stocks) when and if interest rates rise and inflation eventually hits 5%.

There will be a day of reckoning for the fast and loose days of printing money to pay interest on debt.

GO RV!

[wishwell11]

It is very possible that in a few years time or even less, something very horrible is going to happen to all fiat currencies. Why don't you buy precious metals, especially silver?

Agree-hang onto some of those nickles too.

[uncirculd]

Assuming the IQD becomes Internationally tradable and on Forex. Is Forex a better vehicle to invest in the dinar, post RV, if we feel the dinar will increase in value over several years than say buying the newest currency and holding it or funding an Iraqi bank account? Is just buying Dinar on Forex and holding it for a year or two, until it's value goes up, a worthwhile strategy? Thanks for your help.

I'm not a fan of Forex. You can also loose rapidly. If your not able to look at a computer during the day, I would not do it. This is just my humble opinion. Silver coins and bullion. Gold Aslo, but more silver than gold. Always have value, and a great hedge in bad times.

[FreckledFuzz]

Assuming the IQD becomes Internationally tradable and on Forex. Is Forex a better vehicle to invest in the dinar, post RV, if we feel the dinar will increase in value over several years than say buying the newest currency and holding it or funding an Iraqi bank account? Is just buying Dinar on Forex and holding it for a year or two, until it's value goes up, a worthwhile strategy? Thanks for your help.

Short answer: No. FOREX is not something you 'invest' in, unless you have very deep pockets and are looking at long term gains with a positive swap rate (interest)

Longer answer-without getting too complicated because I'm going to assume since you asked this your knowledge of FOREX is limited

It will depend on the interest rate the IQD has...and which brokerage you use. There is a method of trading called the 'carry trade' where the investor isn't concerned about drawdown, rather the daily rollover rate gained.

This strategy is for modest gains only...and I have seen it effectivly applied to such non-volatile pairs as TRY/JPY (Turkish Lira/Japanese Yen) AUD/JPY, and AUD/USD (Australian dollar/Yen and USD$ respectively)

Applying sound money management in regards to leverage and lot size is crucial. Over a 10 year history these pairs average a 5000 pip range...and very decent inters (LONGS only (Buy))

Having said that, I'm sure you read about the currency brokerages being shut down here in the US....history has shown that when 'bucket shop's close (retail desk trading brokerages/clearinghouses) that investors have lost all their funds. And the CTC has very strict rules about US traders and what they can and can not do, as well as the ability to open a trading account overseas now is becoming more and more difficult.

I wholeheartedly agree with the advise of buying metals...something tangible that you have in your possession where there is no risk as you hold it and while it can appreciate, it'll never disappear until you decide to get rid of it

Successful FOREX traders are in and out of a trade within minutes to maybe a week or 2, most of them being called swing traders...which the trades last hours. They live in front of their computer screens....this is not investing

[ddyal]

Thanks to all for your suggestions & explanations.

David

[The Machine]

It is very possible that in a few years time or even less, something very horrible is going to happen to all fiat currencies. Why don't you buy precious metals, especially silver?

I'm with Tyron on this one ..... I started stock piling silver a while back and only recently have I had the money available to buy gold .... it is always a sound and secure investment even at todays prices, the only way is up.

Commedities like gold and Silver never change in value ..... the reality is that everything else ( fiat currencies especially) depreciate in value in comparison to gold and silver.

I am waiting for silver to explode ........ it has been held at an extremly low value for far too long !!