Iraq Dinar: true or scam?

Sep 2nd, 2009 9:33 pm

#1

tasamy [OP]: Deal Addict; Dec 23, 2005; 2644 posts; 139 upvotes; Calgary

Sep 2nd, 2009 9:33 pm

I came across an ad in the newspaper today, a website sells Iraq dinars 1M Iraq dinar is around $1.5k. I tried to investigate more, I found many sites that sell the dinar and actually the price varies. Some other sites warn about old and new currency or fake dinars. They compare the situation to Kuwait although very different. I think 1 dinar = 1 USD is impossible!!!
That is fishy.

BBB Warns that Iraqi Dinar Investment is Creating Concerns and Complaints!!!!
http://www.bbb.org/us/article/bbb-warns ... laints-690

Can we buy the dinars from a Canadian bank?
Is there a tax obligation after buying them?
Is there a tax obligation if I want to sell them?

Can anyone share his experience with us?

Life is life
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Life is life
When we all feel the pain
Life is life
It's the feeling of the people
Life is life
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Sep 2nd, 2009 11:44 pm

#2

mr_raider: Deal Expert; Feb 29, 2008; 27411 posts; 3898 upvotes; Montreal

Sep 2nd, 2009 11:44 pm

I suggest you restrict your forex trading to countries not on the verge of military and political collapse.

Sep 2nd, 2009 11:48 pm

#3

liorsyncro: Deal Addict; Oct 30, 2008; 2120 posts; 58 upvotes; Toronto

Sep 2nd, 2009 11:48 pm

Scam or not, even if it's a real dinar it won't be worth much anyway. And yes, you should be able to buy from any respectable forex place. Try bank or even Money Mart.

Lior Hershkovitz
Broker at Mortgage Edge, specializes in construction financing and private lending
Construction rates start p+2.5%, 2nd mortgage start 5.99%, private financing start 7% max. 95% LTV

Sep 3rd, 2009 2:07 am

#4

Thalo: Deal Fanatic; Jul 1, 2007; 8502 posts; 1635 upvotes

Sep 3rd, 2009 2:07 am

Why the f*** would you want to buy Iraqi dinars?

Sep 3rd, 2009 10:34 am

#5

tasamy [OP]: Deal Addict; Dec 23, 2005; 2644 posts; 139 upvotes; Calgary

Sep 3rd, 2009 10:34 am

Thalo wrote: ↑Why the f*** would you want to buy Iraqi dinars?

I don't know if it is true or scam but anyway it is like gambling

1M Iraq dinar -> $1.5k
If Iraq dinar went to $1 (half of its value before war)
Then the $1.5k will be $1M ... but will that happen? Nobody knows!

Life is life
When we all feel the power
Life is life
When we all feel the pain
Life is life
It's the feeling of the people
Life is life
It is the feeling of the land. Opus

Sep 3rd, 2009 11:03 am

#6

Impossibles: Deal Addict; Jun 7, 2005; 4370 posts; 206 upvotes

Sep 3rd, 2009 11:03 am

tasamy wrote: ↑I don't know if it is true or scam but anyway it is like gambling

1M Iraq dinar -> $1.5k
If Iraq dinar went to $1 (half of its value before war)
Then the $1.5k will be $1M ... but will that happen? Nobody knows!

This thread made me do some wiki research.

Iraq of the 70's and early 80's is quite a different place than today. In the early 90's the value was much lower, like 4000 dinar to 1 USD.

But hey, its your money.

Sep 3rd, 2009 11:12 am

#7

DanielCarrera: Deal Addict; Jul 31, 2007; 1938 posts; 3 upvotes; Earth

Sep 3rd, 2009 11:12 am

tasamy wrote: ↑I don't know if it is true or scam but anyway it is like gambling

Yes, it is. So you might as well just go to a Casino. You'll probably have more fun there, and you'll be less tempted to think that you are investing.

I'm not overweight, I'm undertall.

Sep 3rd, 2009 12:51 pm

#8

AllWheelDrift: Deal Addict; Feb 9, 2005; 4172 posts; 20 upvotes

Sep 3rd, 2009 12:51 pm

You should also consider the Zimbabwean Dollar. If you buy it and it recovers you'll make even more money. Don't forget they already did a 10,000,000,000:1 reverse split so when you compare it to the historic exchange rate, you need to multiply your predicted gains by 10,000,000,000. That means if the currencey returns back to where it was, you will make $10 billion by buying just $1 worth of Zimbabwean Dollars. Heck, even if it only went to 1/1000th of it's original value, you'd still have made a million dollars from your $1 investment.

Sep 3rd, 2009 1:24 pm

#9

tasamy [OP]: Deal Addict; Dec 23, 2005; 2644 posts; 139 upvotes; Calgary

Sep 3rd, 2009 1:24 pm

AllWheelDrift wrote: ↑You should also consider the Zimbabwean Dollar. If you buy it and it recovers you'll make even more money. Don't forget they already did a 10,000,000,000:1 reverse split so when you compare it to the historic exchange rate, you need to multiply your predicted gains by 10,000,000,000. That means if the currencey returns back to where it was, you will make $10 billion by buying just $1 worth of Zimbabwean Dollars. Heck, even if it only went to 1/1000th of it's original value, you'd still have made a million dollars from your $1 investment.

I understand your example. The difference here is that if Iraq stabilized, their currency should return back to 1990 price like Kuwait. Iraq is the third country on the world with oil reserves. If not, i.e. civil war or divided three countries or they issued a new currency after Americans leave, the invested money will be lost. Zimbabwe doesn't have oil and they are still in Saddam era. It seems $500 is ok but not more. I wonder where the $500 are going to?

Life is life
When we all feel the power
Life is life
When we all feel the pain
Life is life
It's the feeling of the people
Life is life
It is the feeling of the land. Opus

Sep 3rd, 2009 1:30 pm

#10

AllWheelDrift: Deal Addict; Feb 9, 2005; 4172 posts; 20 upvotes

Sep 3rd, 2009 1:30 pm

tasamy wrote: ↑I understand your example. The difference here is that if Iraq stabilized, their currency should return back to 1990 price like Kuwait. Iraq is the third country on the world with oil reserves. If not, i.e. civil war or divided three countries or they issued a new currency after Americans leave, the invested money will be lost. Zimbabwe doesn't have oil and they are still in Saddam era. It seems $500 is ok but not more. I wonder where the $500 are going to?

Why do you think if it stabalizes the currency will return back to the 1990 price? You should expect more along the lines of if the country stabalizes, the currency will not drop further. Past valuations are largely irrelevant. You're making the same mistake people make with stocks... "It used to trade at 100, so eventually it will go back up to that, right?" Ask some former Nortel sharholders how that kind of thinking worked out for them.

Sep 3rd, 2009 1:36 pm

#11

eliteblaze2: Jr. Member; May 24, 2008; 183 posts

Sep 3rd, 2009 1:36 pm

lol.

Sep 3rd, 2009 1:39 pm

#12

ratface: Sr. Member; Aug 4, 2005; 789 posts; 8 upvotes; Stouffville

Sep 3rd, 2009 1:39 pm

Think about it this way. If you were in possession of millions of Iraqi currency and you thought that eventually the economy would recover and they would increase in value, would you:

A) hold on to them and make a fortune
B) place an ad in the newspaper and try to sell them to someone else

Sep 3rd, 2009 4:07 pm

#13

DanielCarrera: Deal Addict; Jul 31, 2007; 1938 posts; 3 upvotes; Earth

Sep 3rd, 2009 4:07 pm

tasamy wrote: ↑I understand your example. The difference here is that if Iraq stabilized, their currency should return back to 1990 price like Kuwait.

Huh? Why?

Iraq is the third country on the world with oil reserves.

So what? Venezuela is one of the countries with most oil reserves, it is far more stable than Iraq, and its currency has been plummeting for the last 40 years. Oil reserves has nothing to do with the value of the currency. If it did, you should definitely invest in the Canadian dollar, since Canada is the second country in the world with the most oil reserves (and btw, Iraq is number 4, not 3).

I'm not overweight, I'm undertall.

Sep 3rd, 2009 6:04 pm

#14

mr_raider: Deal Expert; Feb 29, 2008; 27411 posts; 3898 upvotes; Montreal

Sep 3rd, 2009 6:04 pm

Stabilize? Once the US pulls out Iraq will descend in to a civil war so bloody it will make Gettysburg look like a birthday party.

Sep 3rd, 2009 10:26 pm

#15

240sxer: Deal Addict; Feb 27, 2008; 1366 posts; 531 upvotes

Sep 3rd, 2009 10:26 pm

mr_raider wrote: ↑I suggest you restrict your forex trading to countries not on the verge of military and political collapse.

Wow, your ignorance is baffling!

Sep 3rd, 2009 10:45 pm

#16

CRAZYBUBBA: Deal Addict; Jun 23, 2009; 1094 posts; 66 upvotes; YUL

Sep 3rd, 2009 10:45 pm

AllWheelDrift wrote: ↑Why do you think if it stabalizes the currency will return back to the 1990 price? You should expect more along the lines of if the country stabalizes, the currency will not drop further.

I have alot of experience in foreign exchange and he's right.

Sep 3rd, 2009 10:50 pm

#17

i6s1: Deal Expert; Feb 9, 2003; 18637 posts; 3006 upvotes; 9347934 downvotes

Sep 3rd, 2009 10:50 pm

I've got some Riechmarks I can sell you... when they recover, you'll make a fortune.

Sep 3rd, 2009 11:49 pm

#18

Thalo: Deal Fanatic; Jul 1, 2007; 8502 posts; 1635 upvotes

Sep 3rd, 2009 11:49 pm

I have an old Mexican coin from the '80s that says $1000 on it. Actually I have a couple. I'll sell 'em to you for only $1 each. They're bound to be worth something!

Sep 4th, 2009 7:40 am

#19

bubble.tea: Deal Expert; Jun 3, 2005; 28642 posts; 1310 upvotes; PunkeyDoodles Corner…

Sep 4th, 2009 7:40 am

I bet this business is some 12yr old Iraqi kid at an internet cafe, trying to drop a hook-line

.

[February 21, 2007],__WOW...that article from the BBB wasn't exactly written yesterday either! LOL..I just read it. hehe. I wonder if those people ever ended up receiving their Dinars. It's not like there's next day delivery out of Iraq...especially back in 2007.

Iraqi internet cafes...the new Nigerian scam central?

btw....you people are all pessimists! Iraq WILL stabilize

.

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Sep 4th, 2009 10:28 am

#20

Thalo: Deal Fanatic; Jul 1, 2007; 8502 posts; 1635 upvotes

Sep 4th, 2009 10:28 am

bubble.tea wrote: ↑ btw....you people are all pessimists! Iraq WILL stabilize .

So will Nortel... probably... but it means babkas for their stock. (just as a stablized Iraq means nothing for the Dinar and a recovered and economically booming Germany meant nothing for the Reichsmark)