New Dinar Investment, Scam or not?

This type of investment is known as 'currency speculation.' From what little I know about it, it is generally considered a poor investment because the value of currency does not change very fast (usually) and so you have to invest massive amounts to make even a little bit of money. (if it goes up)

The Iraq case might be different, though; I don't know, I'm no economist. One case I should mention is one that occurred in Mexico sometime in the 1990s. I used to collect coins, and I had this Mexican coin I had just obtained that was 1000 pesos. Not having a clue what it was worth, I looked in the newspaper to find the exchange rate. It listed that 1 peso = 25 cents. I was shocked to see my coin was worth $250! Then I learned a few days later that Mexico had recently re-evaluated its currency, so that 1000 old pesos were equivalent to 1 new peso; this was done to help alleviate an economic crisis. So my coin was worth 25 cents, instead. (Fortunately, I didn't pay anything for it; someone had given it to me.)

The point is, nations sometimes re-evaluate their currency in this way. I think this happened in Germany after the post-WWI inflation as well; I'd have to look that up to be sure.

So you spent about $160 on the dinars, and $30 to learn about this. Even if it totally tanks, at least you won't be on the streets if you lose it all. Maybe you'll get lucky and the dinars will skyrocket in value, but I don't think it's likely. Depending how many of the dinars are out there, they might be worth something as a collector's item, but there's probably a lot of them, so it's not likely.

Im still waiting on a revalue. Specualtors were pointing to January 1st, but as you can see that day has already passed with no movement on the value. Tranding has actually gone down and the dinar lost value from 1460:1usd to 1483:1. Im prepared to hold on to the cash for quite a while since I didnt spend that much but I do still check the Central Bank of Iraq's website daily praying for a revalue. Im shooting for 27cents to 1 USD. All I can do is wait. Its not looking to good at the moment. But you never can tell.

As long as Bush wins the war..... it's a go.




Which basically means that...

There is a resounding NO in the near future.

[edit on 12-1-2006 by Archon]

I think the main part of it becoming a scam is that there is vast quantitys of forged Iraqi currency out there.

Originally posted by NumberCruncher
I think the main part of it becoming a scam is that there is vast quantitys of forged Iraqi currency out there.

Proof. Evidence. Substantive contribution?

Originally posted by Archon

Originally posted by NumberCruncher
I think the main part of it becoming a scam is that there is vast quantitys of forged Iraqi currency out there.

Proof. Evidence. Substantive contribution?

Google, heard of it ?

On 01 October 2003 it was disclosed that agents from the Defense Criminal Investigative Service (DCIS) and the 812th Military Police Company assisted by Iraqi police and the Ministry of Finance had broken a counterfeit printing operation in Baghdad and seized counterfeit currency worth 100 billion dinars.
www.globalsecurity.org...

Originally posted by NumberCruncher
Google, heard of it ?

So, Google is the omnipotent demiurge that we've all been searching for... all of these years....

Now, do you have any evidence or is google supposed to be your representation on this matter?

Originally posted by Archon

Originally posted by NumberCruncher
Google, heard of it ?

So, Google is the omnipotent demiurge that we've all been searching for... all of these years....

Now, do you have any evidence or is google supposed to be your representation on this matter?

Look Sir i couldnt care less if youve lost youre entire life saving's on fake Iraqi Dinars, if you want evidence further than what ive provided, go look yourself.

Maybe just maybe its why some Dinar resellers specifically say guaranteed no fakes in there sales pitch, but ive got nothing to prove here, dont beleive me fine, beleive me then thats fine aswell.

peace.

There is a good chance it will work. 80% in speculators hands ??? where did that number come from.. BULL.. Not true . The real numbers can be found out by going the CBI and reading. even if there were X.% in investors hands. if it went to .10 to the dollar you would make 100k most people would cash out just to get their hands on it. second the people with bigger money would step in and start buying it up at the new rate. there for there is not any money spent out of pocket for the Iraqi. who knows the numbers for sure but you get the point.
Another note is The cost of printing new money is not worth it billions.. the old notes will be fazed out with smaller bills . just like to US 10,000. and 1,000 bills. the money is still good but is not needed in today's market.

so for you brains out there or lack of, why would you reprint something you already have now , when you will not be needing it in the coming months or years. Also the talk about the Gulf dinar is there . the goal would be 10 years or so from now. that is a good thing.
Buy what you can afford to loose and sit on it. you will be happy for sure. some of us have made a lot already , it use to cost 1/2 of the price it is now and I get 6% interest on my dinar with the al warkaa bank in Iraq.. Just so i don't have to come back and explain that the bank is not a scam. I have wired money from my bank here in the USA back and forth 3 times, a scam would not return money back.....

Originally posted by Cylent773
Im still waiting on a revalue. Specualtors were pointing to January 1st, but as you can see that day has already passed with no movement on the value. Tranding has actually gone down and the dinar lost value from 1460:1usd to 1483:1. Im prepared to hold on to the cash for quite a while since I didnt spend that much but I do still check the Central Bank of Iraq's website daily praying for a revalue. Im shooting for 27cents to 1 USD. All I can do is wait. Its not looking to good at the moment. But you never can tell.

Just so you know The value of the Dinar does not and has not changed in 2 years. What you see is the values of the dollar moving. when the dollar is strong you get more dinar for your dollar ..... OK. The Dinar is a set value and is not floating at all.

Originally posted by NumberCruncher
Look Sir i couldnt care less if youve lost youre entire life saving's on fake Iraqi Dinars, if you want evidence further than what ive provided, go look yourself.

Maybe just maybe its why some Dinar resellers specifically say guaranteed no fakes in there sales pitch, but ive got nothing to prove here, dont beleive me fine, beleive me then thats fine aswell.

peace.

You didn't answer the question. Don't be frightened. Don't get alarmed.

It's not wether or not that I believe you or not... but wether or not you have any factual basis to support your claims....and in terms of game theory and or a coin economy... you DO NOT.

[edit on 18-1-2006 by Archon]

[edit on 18-1-2006 by Archon]

Originally posted by seabee
There is a good chance it will work. 80% in speculators hands ??? where did that number come from.. BULL.. Not true . The real numbers can be found out by going the CBI and reading. even if there were X.% in investors hands. if it went to .10 to the dollar you would make 100k most people would cash out just to get their hands on it. second the people with bigger money would step in and start buying it up at the new rate. there for there is not any money spent out of pocket for the Iraqi. who knows the numbers for sure but you get the point.
Another note is The cost of printing new money is not worth it billions.. the old notes will be fazed out with smaller bills . just like to US 10,000. and 1,000 bills. the money is still good but is not needed in today's market.

so for you brains out there or lack of, why would you reprint something you already have now , when you will not be needing it in the coming months or years. Also the talk about the Gulf dinar is there . the goal would be 10 years or so from now. that is a good thing.
Buy what you can afford to loose and sit on it. you will be happy for sure. some of us have made a lot already , it use to cost 1/2 of the price it is now and I get 6% interest on my dinar with the al warkaa bank in Iraq.. Just so i don't have to come back and explain that the bank is not a scam. I have wired money from my bank here in the USA back and forth 3 times, a scam would not return money back.....

Why are you wiring money back and forth from Iraq? Are you unwittingly implicating yourself?

Originally posted by NumberCruncher

Originally posted by Archon

Originally posted by NumberCruncher
I think the main part of it becoming a scam is that there is vast quantitys of forged Iraqi currency out there.

Proof. Evidence. Substantive contribution?

Google, heard of it ?

On 01 October 2003 it was disclosed that agents from the Defense Criminal Investigative Service (DCIS) and the 812th Military Police Company assisted by Iraqi police and the Ministry of Finance had broken a counterfeit printing operation in Baghdad and seized counterfeit currency worth 100 billion dinars.
www.globalsecurity.org...

They are referring to the old saddam 250 notes as conterfeit.

And see-bee-can-do, you very well know that this is a transitional currency which will be replaced by the new government. A few billion to replace is a drop in the bucket compared to the nearly trillion of a windfall for currency speculators.

I bought 3 million Dinar when it was around $680 per mil. Just holdin' it, see what happens. If it bottoms out then i'm out around two grand, if it goes up, then cha-ching $$$. I bought mine in Kuwait. The old "Saddam" dinar aren't worth the paper they're written on as far as i know. The Kuwaiti currency trader was just handing them out as novelty items. I ended up with a few dozen of them.

The big question is, will the Iraqi government print all new money once they finally hammer out a coalition government? If so, there will be alot of unhappy speculators...heheh. I know one guy who's bought 50 mil Dinar.....crazy.

Yah i guess that is what would worry me the most, will they just replace the currency under the new government ?
but surely if they did that they would have to offer some sort of buy back or exchange for the current currency or something ?

Originally posted by NumberCruncher
Yah i guess that is what would worry me the most, will they just replace the currency under the new government ?
but surely if they did that they would have to offer some sort of buy back or exchange for the current currency or something ?

Closed border exchange and I guarantee you it will happen before April of 06.
Why do you think the dealers are so deparate to dump their currency? They see what's coming. A few billion for a reprint or a few trillion for speculator wind-fall. Hmm, now that's not to hard to figure.
I have followed this currency as I do others and I'll admit I have some but I don't expect it will be anything more then coasters for guest drinks.

It's almost a given that the Iraqi Dinar will rise in exchange rate value sometime in the future, but I don't think owning large stacks of currency will work. When the Dinar rises in value, Iraq will issue a new currency, lop off a couple zeroes, etc. There will definitely be a redemption period given by the central bank to exchange bills for the newer ones, but you'd have to send them to Iraq. To someone you really really really trust, or to go there yourself.

The Iraqi Dinar used to be 1 to 3.30 dollars, but even using a more modest rate of 1 dinar to 1 dollar, there's no way these bills will still be legal tender by then. It's wishful thinking to hope a 10,000 Dinar bill would be redeemable for $10,000.

The only people getting rich off Iraqi Dinars are the people selling them. Most dealers and their marketing techniques remind me get-rich-quick schemes.

Collecting money is sort of a hobby of mine. The Dinar will be revalued and eventually demonetized. Like the Mexican Peso, Romanian Leu, and Turkish Lira.

public.fotki.com...

By the way, I've heard plenty of stories about soldiers buying into the hype and getting their friends and family to do the same. We're all human, I guess. But just because they're over there and can buy them easier, it doesn't validate anything and make the whole thing a better investment.

Before coming back to CONUS, my unit marshalled our humvees on Camp Doha before loading them onto the boat. All along the motorpool, third country nationals would walk up and down our line hawking money as souvenirs. One guy paid $20 for a Egyptian 50-Piastre note.

Here's a nice read posted by CNN

money.cnn.com...

And there are a few sites out there who's main purpose is pumping the dinar.
Beware, I am telling you before you go that these sites plant rumor posters to increase dinar sales. Do not buy dinar on rumors. It is a big gamble.

www.investorsiraq.com...
www.iraqidinarinformation.com...
www.aboutdinar.com...
truckandbarter.com...

Hi there. I'm going to keep this as short as I can. Number 1: I am not trying to sell or promote anyhting, as you will see by the fact that this post has no links or recommendations or specific items. Number 2: I am in investor. I saw this post and joined *just* so I could reply to this.
Please, people, do not buy dinars expecting to become rich right away. Much of the above information is true, the old Dinar was valued at $3.30, but (and isn't there always one) that was NOT an open market value. That was a value that saddam made up while at the same time not allowing the dinar to trade on the open market, hence this value was never tested, hence it is very unlikely that the new dinar will shoot "back" up to that value.
Currently, the new Dinar is valued at around what most people have written above, however if you must buy (which I strongly advise against, at least in large quantitites) shop around. There are many prices available and many sites scam people with inflated fees (I did some cursory research and found ranges from 700 to 1020 for a million, so that should give you an idea how much scamming is going on. Real value is currently about 750, I believe). However this dinar is not trading on the open market (though it is legal to buy in the U.S., unlike the dinars used to be) this is being done to keep the price stable, and it will probably not trade openly for quite some time. The currency is meant for use in Iraq (and for some commerce with its neighbors). Total exchange daily is in the thousands of dollars range.
Lastly, when you buy a currency what you are really doing is betting on that country's economy. The only way your dinars will go up a million times is if the Iraqi economy goes up a million times.
So in short, do I expect the dinar to go up eventually?
Yes, as all restabilized countries do.

Will it make you wealthy beyond your wildest dreams?
No.

How much will it go up?
This is impossible to predict, as it true for all such forms of speculation.

Should you buy dinars?
Maybe. It's a big gamble so don't spend more than you can easily afford to not use (or lose) for a long long time. Don't bet on the dinar, bet on Iraq. If you think Iraq will do extraordinarily well, go ahead, buy dinars, but if you think it will continue to have lots and lots of trouble for years and years to come, stay away.

What should you invest in?
I promised I wouldn't, so I won't. (But bank accounts tend to be very secure)

Remember, if it's too good to be true... it probably is. If the people selling you dinars really thought they'd skyrocket, wouldn't they be holding them tight and buying up as many as they possibly can?

Good luck!
-Tim