investing in iraq currency?

[silvercop]

friend of mine spent about 1K and bought 1 million dinars. says it is for investment and if the iraq government ever gets going with the oil they have the currency will increase and he plans on making a boat load off of it. he says he will be buying more and has plans to invest 5K. he said he could make a million off of the 5K investment. i think this is very risky and borderline stupid. he is trying to convince me to invest in this and to be honest i just dont know enough about foreign currency. i have done a little internet research and i still don't know anymore about it than i did before i started. anyone have any experience with this or thoughts?

 

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[padlock]

peeked my interest hope someone can chime in

 

[Marchas45]

Well I found this linkhttp://dinartrade.com/ but what happens when the us and other countries pull out, what will happen to the Dinar will it be called something else and will the ones you buy be legal? Lot's of questions on this one. Hope people have answers.

 

[Mackaydon]

My recollection is there are two types of Iraqi bills. The ones with Saddam on the face are worthless--no US bank is willing to convert them to dollars--but do your own checking first.
Don........

 

[markmopar]

Yeah, I have some. So far, the only ones who made money are the ones that bought at the VERY beginning(when it was 4000:1). Now it's 1170:1 and has been for a couple years.
I bought early enough that I haven't lost, but no real gain either.
There is also the very real possibility of a zero lop, taking three zeroes off the currency, thus making a 10,000 bill worth 10.
Don't invest anything you can't afford to lose and check out:
www.investorsiraq.com

 

[Bum Luck]

My bet is that they will get a new currency.

Do you think the Big Boys will really let us peons get rich?

 

[padlock]

I spoke to a good friend of mine about this investment and he bought 10K worth and I just bought 5K worth. if hes willing to do it I guess it worth a shot for me.

 

[Siegfried Schlagrule]

To the best of my knowledge there are damn few countries which accept
their own paper currency after the design changes. The US is one of them
and technically the gold back certificates were rendered non-monetary in 1933.
If you are prepared to lose 100% of your investment go ahead. For those
who insist on trading in foriegn currencies you can get american express travellers checks denominated in most major currencies. Last time i checked
the fee was 1 percent of the face value. Check for current rates and the currencies you can invest in. In the past people worried about the economy bought travelers checks in swiss francs.
That "he bought $10,000 so my $5000 is safe" is identical to statements made by most of the major frauds of the last century. At best - if the man told you the truth - you are both at risk of losing your entire investment. At worst - your rich friend pulled an expensive joke on you. siegfried schlagrule

 

[nyiangelo]

It's an investment.... that's it. You can win or you can lose. Back in the 90's there were some people around here who bought some Kuwait money during the gulf war. Now they don't have to work another day in there life....... That's what people are hoping to get out of this. I own some. I realize that I could lose a little bit of money or be financially set for the remainder of my life. I know George W Bush and Donald Trump both invested in the Iraqi dinar. It's a gamble, but what isn't now a days.

 

[markmopar]

A similar thing occurred with the Afghan money. When it came out the exchange was many thousands to one, now it's 45:1 making those in the know a LOT of money!

 

[999digger]

I have about $40,000 dollars in Iraq bill. I am saving them for the same reason.

 

[mts]

This reminds me of the days when I used to invest in the stocks of companies that were facing bankruptcy. The cost of their stock put them in the penny stock range. But it was very risky. If they went bankrupt and changed the ticker symbol on you then you were left with nothing (your common stock was worthless). But if the company pulled out of it and didn't go bankrupt then it was POSSIBLE that you could make a fortune on a small investment. However, the more likely scenario was that the company limped along for many years making minimal gains. Needless to say, I don't make those types of investments anymore.

I'm not saying that Iraqi dinars aren't a worthwhile investment. But just remember that the world is not black and white. There are more than two possible outcomes. And the most likely outcome is that your investment will limp along for many years making minimal gains. If you knew that up front you'd never invest in it. Hindsight is 20/20. You can always find some edge case where some guy had the "foresight" to invest in some longshot and got rich off of it. That's great. Just don't forget to also look back at the thousands of other guys who lost their shirts on virtually identical investments.

Personally, I think the time to invest has passed. You have to be able to see that the country is going to be thousands of times more profitable than they are right now in order to make a million dollars off of a one thousand dollar investment. I just don't think that is going to happen. For the currency to double or triple in value is reasonable. But I don't think they are going to command much more than that. That's my opinion and it is worth EXACTLY what you paid for it.... nothing!

 

[mts]

It didn't take much googling to find this site which gives a lot of good info on the "scam" of buying Iraqi dinars...

http://www.iraqidinar.org/

Google for "iraqi dinar". It's the very first hit you should get. Also try googling for "iraqi dinar scam" and you'll get plenty of hits with information that will make you think twice before buying.

 

[Gold_and_Silver]

iraq is planning to Redenominate/ deleting zeros off there currency and by exchanging 1000 old to 1 new

so people holding 1 million dinar will get 1000 us dollars which is what most people paid for there dinars. as for the donald trump and gorge bush investing that's a rumor it never happened

and kuwait never revalued there currency it got reinstated

 

[Mackaydon]

Gold and Silver
Do you have a source reference you could point me regarding Iraqi 'redenominate' bills?
Thanks,
Don........

 

[Native Floridian]

Doesn't the political instability play into the value here? What is the risk level?

 

[gunsil]

friend of mine spent about 1K and bought 1 million dinars. says it is for investment and if the iraq government ever gets going with the oil they have the currency will increase and he plans on making a boat load off of it. he says he will be buying more and has plans to invest 5K. he said he could make a million off of the 5K investment. i think this is very risky and borderline stupid. he is trying to convince me to invest in this and to be honest i just dont know enough about foreign currency. i have done a little internet research and i still don't know anymore about it than i did before i started. anyone have any experience with this or thoughts?

I live in New York. Does you friend have any interest in buying the Brooklyn Bridge?? I may have several bridges to sell to interested investors!!

 

[Native Floridian]

This reminds me of the days when I used to invest in the stocks of companies that were facing bankruptcy. The cost of their stock put them in the penny stock range. But it was very risky. If they went bankrupt and changed the ticker symbol on you then you were left with nothing (your common stock was worthless). But if the company pulled out of it and didn't go bankrupt then it was POSSIBLE that you could make a fortune on a small investment. However, the more likely scenario was that the company limped along for many years making minimal gains. Needless to say, I don't make those types of investments anymore.

I'm not saying that Iraqi dinars aren't a worthwhile investment. But just remember that the world is not black and white. There are more than two possible outcomes. And the most likely outcome is that your investment will limp along for many years making minimal gains. If you knew that up front you'd never invest in it. Hindsight is 20/20. You can always find some edge case where some guy had the "foresight" to invest in some longshot and got rich off of it. That's great. Just don't forget to also look back at the thousands of other guys who lost their shirts on virtually identical investments.

Personally, I think the time to invest has passed. You have to be able to see that the country is going to be thousands of times more profitable than they are right now in order to make a million dollars off of a one thousand dollar investment. I just don't think that is going to happen. For the currency to double or triple in value is reasonable. But I don't think they are going to command much more than that. That's my opinion and it is worth EXACTLY what you paid for it.... nothing!

There are a few ways to invest in companies in trouble. One is to be ahead of the curve and ride them down on short side or with Puts. Like shorting the for profit technical schools in 2011. These schools had been fleecing students for years with false numbers. All financed by the DOE. Anyone who was paying attention around the beginning of 2011 could see that the DOE was going to clamp down. And clamp down they did! And the stock prices of these schools fell like rocks.

Another way to profit is to jump on bad news. Again by going short. BP was a good example of this, though extreme. BP was very friendly to shorts in that its price held up reasonably well at first. Then a huge opportunity for shorts and options players.

The third way is one of my favorites - that is the ride back up. Again, the idea here is not to invest in penny stocks, but quality companies that are trading like penny stocks. or those that have been driven way down by one time events or market/political events. Once down, as usual, they are oversold. The opportunity is to take advantage of the oversold condition. of course 2009 was a field day! But again Bp was a good example of bad news sinking a stock to a too low price. BP went from roughly 60 to 27. Buying once well off the bottom, say in the low 30s range was a winning investment.

 

[TheCoinKid]

The third way is one of my favorites - that is the ride back up. Again, the idea here is not to invest in penny stocks, but quality companies that are trading like penny stocks. or those that have been driven way down by one time events or market/political events. Once down, as usual, they are oversold. The opportunity is to take advantage of the oversold condition. of course 2009 was a field day! But again Bp was a good example of bad news sinking a stock to a too low price. BP went from roughly 60 to 27. Buying once well off the bottom, say in the low 30s range was a winning investment.

I've been following that philosophy for years, generally with success. I've also "caught a few falling knives", as they say. My recommendation would be to make sure you put a stop-loss in place. I've just ridden too many of these "already beaten down" stocks into the ground.

I remember back in the early 80's, when I was just a yonker, I bought 100 shares each of three troubled companies. Cost me right at a grand total. Braniff, IH, and Chrysler. Two were disasters, but the third more than made up for the others. A feeble attempt at diversification, but I came out just fine in the mix.

 

[Peyton Manning]

I bought some stock in a car company called yugo? supposed to be good