Iraqi Dinar (IQD) Investment Discussion Thread

I'm starting this thread for investors of Iraqi Dinar IQD for discussion.  Please chime in about any news or rumors of credibility.

What is there to share?

WS - I know you are not invested, so please find another thread.  You are a doubter of anything and everything.

How do you know I am not invested?

OK WSC... it is clear that is your opinion of this investment.  Now anybody reading this thread knows everything you have to say about it.  Does that mean you will stop posting here, and allow others with different opinions to post without being bashed ?

Where were you bashed?

A couple years back... I bought silver (alot of it) at $18/oz.   I made the case that I thought it was about to break out... and all you did was bash and try to make a counterpoint that my investment was silly and silver was going nowhere.  Well since I bought, silver went on a huge run (topping out above $50) and I sold my silver at an average of $35 doubling my investment in less than a year.

Easy fella..

I answered your question... but it never ends.  I'm not going back years to find the thread.  I post here RARELY and I remember it very well.

For anybody that is interested in discussion:

Why would anyone invest in a country that has some much unrest. 

Also, Countries led by dictators have little chance of a successful currency.  The Middle East is littered with these fellows and corruption soon follows. 

F*UCK YOU mr linesman.

Who are you trying to kid... the country is rooted in upheaval like never before, with continuing suicide bombers, etc.

Don't kid yourself.  There are few parts of the Middle East (if any) that can escape the power of Religion (i.e. Islam), and their feuding divisions.  Go do some reading on Sunnis, Shiites, and Kurds... this power struggle will continue long after you and I are around.

Go look at some other Emerging Countries that are not enveloped in Religious struggles.  Look elsewhere besides the Middle East if you want to take some risk.

 

Want to talk about a dictatorship??? look in the freaking mirror

I am interested in this topic as I have heard both sides for years. IMO, everyone above has made very valid points in regards to the aforementioned situation in regards to Iraqi currency...


Out of curiosity, how invested are you? How much currency do you own? What are you paying for Dinars in US currency?

Imo, I really think the situation could go either way with the investment. Bottom line is that it needs to be a LONG-TERM investment as the country is still as bad off as it was post invasion. I am in total agreement with WSC and Rush that sectarian violence fueled by religious fervor is never going to be an easy fix. However, the violence is perpetrated by a very small percentage of the overall population. If anything, Iraqis (along with the likes of the Lebanese, Egyptians, etc) have grown accustomed to Western influences as opposed to absolute backwaters like Somalia and Yemen. My point is that hopefully the country (citizens) will finally realize their economic potential and and motivate to establish a secular state that shares in a common nationalistic goal; one based on being an Iraqi as opposed to a Sunni/Shiite/Kurd/Iraqi Christian, etc. That said, easy to say as I sit here and not there.

Obviously I think the negative side that could possibly make the currency wallpaper has been mentioned. It's a civil war based on religious sectarian struggles that is an absolute quagmire at the moment. Add in that the fact that the IMF will definitely hold off of any international exchange until the country can prove that it is ready for long-term investment. Those are two pretty big obstacles to hurdle in the short-term.

I think the positive is that Iraq in a nation of immense potential. Obviously oil reserves are the main draw. No need to discuss here; anyone with any sense knows this is the primary reason why there is conflict in this region. Another big plus (thanks to ole Saddam) is that the nation (for the most part) has a great overall infrastructure. Roads, power plants, ports, schools, civil service are all there. They need to be tweaked, but they are there in tangible form for the most part. Efficiency in running the above is another matter. Still, it's not like these need to built from the ground up. Saddam's regime actually (for the Middle East) did a decent job in developing Iraq into a modern nation.

Another positive is that I just don't see powers such as the US turning their back Iraq at any point. There has just been too much blood and money (mostly money is the reason) invested into Iraq's future. There are multiple international corporation just drooling to tap Iraq's potential future. Many are already there.

As opposed to other failing nation-states in current warfare (Somalia, DRC, Afghanistan, etc) Iraq has the highest potential to be a money maker. DRC could be; but the vastness and lack of infrastructure will forever hinder their potential. Oil and the industry around it will be the key for the most part in Iraq. Oh, and that whole war thing ending.

I have a small investment and am not looking to add more. It's primary a scam at the moment to sell inflated priced dinars. That said, if you pay wisely, you can always sell back. Man, I could easily sell individual notes on sites like Ebay and most likely recoup or make a small profit...

Imo, the potential is there, but most likely a fool hardy large investment. I would recommend to anyone who is convinced to invest to just buy a million dinar or so and hope to make a small return when you have grandchildren lol...


Points to made on both sides.

I am significantly invested in dinar to answer your question... no need to quote numbers.

Why would myou be significantly invested at this point?  Not being rude.  Would just like to know why you think it is about to be traded?  Thanks.

I think he is asking why you think it will be traded as a world currency: As for timing, I expect the IQD to be trading on the forex as soon as a few weeks, to maybe a few months down the road.

You make valid points as to the reason why IQD could be a sound investment. I was just curious too as to why you think it will be traded soon? Just asking asking as this has been speculated on for years; and it is usually touted by "licensed" dinar dealers. I just have not seen any concrete evidence that it is about to be a traded currency. Hope it is soon.

My other major concern with the dinar (and the one that makes it seem like such an unfeasible investment) is that who is going to pay all of this money out if a RV happens?

I took this paraphrased from some anti-dinar investment pundits:

The Central Bank of Iraq has produced 80 trillion dinar. The GDP of Iraq is $250 billion. If the dinar revalues to even 1 cent the money supply of Iraq will be more than 3 times higher than its GDP (1 cent x 80,000,000,000,000 = 800,000,000,000)! No nation on Earth has a money supply greater than its GDP! The US has a GDP of $16 trillion and a money supply of $10 trillion. Based on it’s GDP, Iraq can support a money supply of about $80 billion dollars and guess what? That’s exactly what the value of their supply is!


Basically, if it RVs to even just a US penny, there is not enough in reserves to even pay out the cash in. And that's just a penny.

Iraq was just released from chapter 7 sanctions under the UN.  That is the main reason I think it will be soon.  Most also speculate that they also have some house cleaning to do in terms of laws to be passed.  Most agree that they must pass the HCL laws before the currency can be traded.  HCL stands for hydrocarbon laws.  Its not a greenie thing, they need to decide how to splits the revenues from the sale of oil.  The HCL should be decided soon, but nobody knows. 

Gotcha ---good reason  ---I see your point--but when you said 'significantly' maybe I misinterpreted that to mean 'very'---You may be right but I would not put a large portion of high-risk investment funds in this one play at this point.

I have a friend that pulled me into this investment.  This friend is a very astute investor, and majored in finance.  He bought his dinars way back in 2004, and he is holding firm the the facts as he knows them.  He has a brother in law in the US Treasury that told him it is a matter of fact that the US Treasury "bought" 4.5 trillion dinar when the new currency was first printed.  To date, this currency is being held awaiting revaluation.  I did a quick google search to find anything in print that would back this up