New Iraqi Dinars....Worth a Gamble?

[tripdad]

i don't know a bunch about currency investments, but at roughly 8/100 of a cent each, these seem like a pretty solid prospect for a tremendous profit. if i'm not mistaken, prewar levels ranged in the 6.5-7 cent each range.

any thoughts?

cheers!

[GeorgeF]

'pretty solid prospect for a tremendous profit'

I see Iraqi dinars sold on ebay. I personally doubt they will be worth anything. Also note that since you cannot really hold them in a bank account you will have to pay to store them somewhere where they will not be lost/damaged. If the Dinar goes throught changes you will have to be able to travel to Iraq, or their agent in the US, to exchange them for new curreny issues that might occur.

If you are serious do your homework by studying Lebanon.

US$1 buys $0.60 today, the fact is those paper things the gov gives out are not going be worth much.

[AceHigh]

Let's see a new country, with a large foreign power itching to get out providing the only security, terrorists attacking everday, infrastructure destoryed by neglect, war and terrorism; doubts about whether it is secure enough to even hold elections. Based in a region of the world not known for stability or democracies.

And you want to gamble on a stable, democracy taking hold and thriving? Not to mention hostility among various ethnic groups, some of them looking to get back at other for past deeds. Good luck to you brother.

[tripdad]

from the limited research i have done, the dinar is now a stable currency, and used by the entire country(unlike prewar Iraq, where the Kurds used a different currency than the rest of Saddam controlled Iraq). the currency itself is also a very modern currency comparable to the US dollar in terms of counterfeit protections and what not and the stock used.

as far as storing the bills, it's not like i'm going to buy 100,000,000 worth. i can put whatever i buy in a safe at home.

i also see the Dinar selling on E-bay....at a profit of over $200 per million sold.(or 25% profit)

cheers!

[lehighguy]

Its all about EV.
If the tiny chance of the country becommming stable times the potential huge profit is greater then what you'll lose trying it then go for it. After all, the potential profit is huge compared to the tiny amount of money being paid to try it.

No matter your political views, you have to admit there is some chance of the country stabilizing.

Not that I'm offering specific advice on this one. I'm just saying it might be a good investment and worth looking into.

[AceHigh]

[ QUOTE ]
No matter your political views, you have to admit there is some chance of the country stabilizing.


[/ QUOTE ]

Eventually the country will be stable, even if the US is no longer involved. I just don't think it will stabilize in short term.

Seems like high risk, uncertain reward to me in the short term. With the US market doing at least OK lately, I'm not sure why someone would look to Iraq.

[Keres]

[ QUOTE ]


Eventually the country will be stable, even if the US is no longer involved. I just don't think it will stabilize in short term.


[/ QUOTE ]

Indeed. Once a new gov't comes to power they could start up the printing presses and devalue the currency overnight. Personally, I wouldn't be surprised if the new gov't comes in and cancels the contracts the CPA signed and hands over deals to the Europeans. There does seem to be some anti-American sentiment in Iraq and there's no telling what a new gov't could do.

However, there is definitely a good opportunity to make money on the dinar and I'm surprised I haven't seen it yet. And that is, late night infomercials selling the Dinar to the American public. Basically put forth the same arguments the original poster did and sell dinars at even less favorable terms. Taking advantage of the lack of knowledge on Iraq and foreign currency, it could very well be possible to make a killing here. Everytime Bush is shown on tv saying "The situation in Iraq is improving" - one would attract further "investors". People would invest because they want to believe that the US is doing the right thing and buying dinars would be a way of showing how much they believe in what the US is doing.

Cynical? yep. Would it work? I think so. I cracked up at the informercials selling oil options ("Oil prices have gone up because of the Exxon Valdez spill!") but whoever was behind those must have done well.

[Keres]

[ QUOTE ]

...selling the Dinar to the American public.

[/ QUOTE ]

being done. figures. no infomercials yet I think...

http://betoniraq.com/