My number 1 son wanted my opinion on investing approx. $ 800.00 or 900.00 US dollars for 1000000 (million) Iraqi Danar dollars in the hopes that the re-organization of the Iraqi Government will re-evaluate the value of the Danar allowing great increase of profit to the holders. I think the current rate is 1168 Danar dollars to $ 1.00 U.S. In MHO I think this is a terrible risk and the only sound advise I could give him at this time is to "Never invest any more than you can afford to lose". And of course, "If it sounds to good to be true, than it probably isn't". Any thoughts on this ?
A revaluation of currency does not inherently increase it's value. All it does it lower the number of digits. (i.e. 1 new dinar = 1,168 old dinars would only mean 1 new dinar = $1 at the time of revaluation, which is the same thing). The currency is still subject to market forces like any other. As far as investing in the Iraqi dinar in general, I think at present the situation over there is too unstable to invest with any real confidence. They may reorganize, but they may also fall into the same situation that has been sweeping so many other Arabic countries lately. If he wants a low risk investment, tell him to buy some .999 silver bars/rounds.
I have a friend who has spent a lot of money on them. I don't believe in it. He swears by it and say he's already a "Billionaire". I'm like, "Oh my gosh dude, you just went into debt for Dinars"? I prefer to buy silver or gold.
That place down the road? The one that serves the dried out chicken and half baked couscous? Never in your life do you want to invest in that place Dave. Wait a second......you mentioned Dinar. OOPS, thought it was Diner........never mind..........
This seems to be a "hot" investment idea, as a guy last weekend was asking me about this. The same answer still applies, extremely high risk, and the most likely outcome is them just dropping zeros rather than the real value going up.
Ha ! ha ! Ken, Chicken never tasted like this, which this idea sure leaves a sour taste in my stomach.
We're leaving the place, right? US troops pulling out soon? Uh, uh. Bad investment. Nothing to back it up.....
I worked with a nurse at a nursing home who decided to do this. She paid $250 she said, (Don't know if shipping is included in that) for 250,000 Iraqi Dinar. She proudly brought a 10,000 note to work to show me, insisting that it will soon revalue. That was in 2009. It's now worth $214 US. Aside from that, it's not like that money would cross over in value. Only money printed after the date of revaluation will be worth that. Case in point: I got a 1949 100,000 Yuan and a 500 Yuan note (China) and went to currency calculator. Current US value was like $14,900 so I headed to the bank LOL! Well, that currency had REVALUED several times since then, and was only valued at what a collector might pay. The same will happen with these, only there are THOUSANDS of these in the hands of would-be investors that don't seem to fully grasp the reality of what happens when currencies revalue. In short, don't give any more of your $ to those folks than you have to at the gas pump! IMHO. -Andy
Excellent point. Once it's revalued there is a time frame for exchanging to old notes and coins. Some countries make it a brief period, but others make it extended. Germany still accepts pre-euro Deutsche marks in exchange for euros, and they were one of the first countries to join the euro program.
I believe it is illegal to take them out of the borders. There is one website that sells them but pays less when they buy them back (like any profiteering website would do). I have some friends who own them. I just want one or 2 for my collection
Hey Dave. That sounds like an awful investment to me. I hope your son stays clear. As an Iraqi veteran I believe the people will do away with the Dinar all together. If I am not mistaken just about every Dinari has a picture of, or is associated with Sadamn Hussein. The Shia were surpressed for 30 years under his rein of terror, and I'm assuming won't stand for currency with his portrait on it. As with the Kurds. That is 3/4 of the population right there. JMHO
Thanks for your advice Jason. I can't really tell my 52 year old son what to do, but I think I will copy and paste your response to him. Nothing like getting the input from someone who's been there. Something like straight from the horses mouth, whatever that is suppose to mean. Regards, Dave
Sometimes the horses mouth is incorrect. The new currency of Iraq has no reference to Hussein. I have a small suitcase full in the hall closet. Take your $800.00 and have fun with it. http://www.ebay.com/itm/200-000-New...0609327807?pt=Paper_Money&hash=item2c613386bf http://www.ebay.com/itm/100x-500-50...0863092699?pt=Paper_Money&hash=item3f10b2cbdb
You are completely incorrect, all association with the Dinar and Saddam Hussein ended in 2003 and 2004 when all new notes and coins were created for that exact reason. A quick Google search would allow you to give much more accurate information. http://en.wikipedia.org/wiki/Iraqi_dinar
