the Iraqi Dinar - WTF?

[LOKNLOD]

I know we have some financially well-informed folks here, so what does anybody know about the supposed investment opportunities for dinars?

My inlaws have become convinced that buying Iraqi Dinars before a future revalue is going to potentially make them a fortune. They've got the grandma and sister-in-law to buy some as well. I remain unconvinced. Unfortunately their talk keeps my wife worried about it and she's all but convinced that we're missing out on something and they're all going to be rich and we'll be fools for missing out.

Research seems all but impossible because searches just turn up websites parked at every domain name thinkable, non of which exude any form of legitimacy, and some very old articles warning investors to be careful.

My gut says its all just a little too easy and too good to be true, plus the fact that I can see the same story has been being sold to investors since the war started and its always "this is going to happen next month!!".

Anybody know anything factual about this? I'm not looking for investment advice, but what I am interested in is legitimate info that I can use to help my wife (and her family) understand the truth of the matter.

[Iraqgunz]

Don't waste your time. I have a bunch that I bought back in 04. There is a lot of hype and comparison about the Kuwaiti Dinar vs. Iraqi dinar and how it went up in value after the first Gulf War. The comparison isn't the same.

Plus, it will be difficult to exchange the dinars and to the best of my knowledge they still aren't being traded internationally.

[mr_smiles]

I know that Iraq plans to redenominate the currency so 1,000,000 dinars will be 1,000. But one thousand thousand dollar bank notes will still only be worth 1,000 dinars. So you won't get rich from it.

As far as traded, I don't believe the dinar is publicly traded, and the only ones making money are the ones taxing 20% on ebay.

So you run a huge risk of buying counterfeit.

[jklaughrey]

After the 1st Gulf War and finding items in all sorts of places on the POW's, one could wonder if the Dinar your holding had an interesting travel from the mint to your hand. Cheers, don't waste a breath, tell your wife it is ok. Invest in ammo and training.

[bkb0000]

i would not invest in money from a country that will likely experience several overthrown "governments" in the next couple decades.

[Caeser25]

Kuwait pre-gulf war is very different than Iraq pre and post 2003. There were guys from my unit that exchanged currency before we left, some exchanged up to 5 million Iraqi Dinars, like $4,000 US Again see my first sentence. I acquired a few dinars here and there, 20 some thousand Dinars, enough that if it does happen I have enough to buy 2 new cars, if not, I'm not losing much.

[6933]

Don't touch it. It's pure speculation. If you have money that you can afford to lose, then I would do an amount you can piss away on a longshot. I don't know of any reputable CFP recommending this as an investment.

[Iraq Ninja]

Back in 2004 I was on the team responsible for Admiral Nash's travels around Iraq. He was the head of all reconstruction efforts at that time. He was a very switched on individual when it came to investments and we once asked him what he thought of the dinar.

As I remember it, he laughed and said it is not a good investment, and that it would take too long to make a profit if it ever would. He did mention that the Iraqi stock market had potential.

Iraqi real estate was at one time a good profit but plagued with many problems.

Iraq and their dinar are tied to their oil, and their failure to get it out of the ground. The past few years they have had to make deals outside of the country to get others to do the work for them. Thus, they will get less in return. That is why the Chinese are over here in numbers, along with a few US and European companies. The Japanese blew it and will probably not be in the oil game here.

So, tell your friends that if they want to make money from Iraq, they need to get to Iraq. The only people making real money from the dinar are those who push the concept on the internet...

[rickrock305]

Pure snake oil. There is very little chance of ever making money off of it, surely not any time soon.

There are plenty of great investment options out there. This isn't one of them.