Saturday, July 01, 2006
Iraq Dinars...Investment or Lottery
There is a lot of excitement at the moment around Iraq Dinars. This worthless currency is being snapped up by would be investors / speculators around the world. Is it really an investment or is it just a lottery of high risk speculation?
A bit of both is the answer. As with all high yielding investments they come with high risks. However even the low risk investment still carries a burden of speculation. Just consider the mess that many “safe as houses” pension funds have found themselves in recent years.
Some facts about the Iraq Dinar:
1. The currency is almost worthless, at an exchange rate of £00.000368 for each Dinar.
2. The currency is not liquid. That is to say there are no exchange markets dealing in Iraq Dinars. It is purely an internal cash currency.
So why is there such a demand for this money?
It is precisely the two points above that is making it so attractive. Before the war the Iraq Dinar was worth £1.73 each. Not only was the presence of oil supporting the economy but Iraq was the premier producer of dates to the world and a leading producer of pistachio nuts. Each of which could support a reasonable economy in their own right.
When Kuwait was invaded the currency collapsed to similar amounts only to recover to its former self in a few years. Those who took advantage of this extremely low valued currency became millionaires as the Kuwaiti Dinar bounced back to its former position. Kuwait was not unique, Germany and Japan each suffered economic collapse after the Second World War only to rise again making those who had invested a vast amount of money. Indeed every country subjected to war this century has followed this pattern.
Normally only the rich and powerful would be privy to this little “secret” and the old tie network would oil the wheels for those select few to cash in. With the power of the internet it has now become almost common knowledge.
So what are the risks?
No one really knows when the Iraq Dinar will recover. Months, years or decades no one can really say. This is not a get rich quick scheme, this is putting your money in for the long haul.
That said, it is without a doubt a very real reason why the Americans are there is the oil. Also the big global American companies with their government contracts to rebuild the country, would not be investing resources if they could not see a vast profit at the end. The country now has a democratic government which contains the opposing Suni and Shi’ite factions. A monumental step towards political and social stability.
The money could be changed before the profit can be realised. This is true but unlikely. In 2003 the Iraq Dinar (IQD) was changed to the New Iraq Dinar (NID). Funded by the Americans and printed in Britain by the De La Rue company. Firstly to remove the image of Saddam from the currency, but also to economically unify the north and south who both operated local regional currencies. A major inroad towards economic stability and growth.
Should you invest? I am no financial expert, but it would appear that the right elements are there. A collapsed economy, in a country with vast mineral and agricultural resources, with the world's superpower investing to rebuild it.
If you find the proposition of putting some money aside in a hope that you will find the pot of gold at the end of the rainbow. This is as wise an investment as playing the lottery, something which we all do.
Roughly speaking £500 will buy you 500,000 NID. This is an un-regulated market in which the banks and financial institutions are not involved. As I said the currency at the moment is not liquid so exchange rates are set by the seller. When the currency recovers only to 20p per Dinar you will have made £100,000. If it recovers to its former rate you will own £865,000. Invest £600 today and sometime in the future you really could be a millionaire.
You could of course win £1,000 by the weekend in our FREE to enter draw, Grab a Grand. Just click here to be taken to the details page.
business
A bit of both is the answer. As with all high yielding investments they come with high risks. However even the low risk investment still carries a burden of speculation. Just consider the mess that many “safe as houses” pension funds have found themselves in recent years.
Some facts about the Iraq Dinar:
1. The currency is almost worthless, at an exchange rate of £00.000368 for each Dinar.
2. The currency is not liquid. That is to say there are no exchange markets dealing in Iraq Dinars. It is purely an internal cash currency.
So why is there such a demand for this money?
It is precisely the two points above that is making it so attractive. Before the war the Iraq Dinar was worth £1.73 each. Not only was the presence of oil supporting the economy but Iraq was the premier producer of dates to the world and a leading producer of pistachio nuts. Each of which could support a reasonable economy in their own right.
When Kuwait was invaded the currency collapsed to similar amounts only to recover to its former self in a few years. Those who took advantage of this extremely low valued currency became millionaires as the Kuwaiti Dinar bounced back to its former position. Kuwait was not unique, Germany and Japan each suffered economic collapse after the Second World War only to rise again making those who had invested a vast amount of money. Indeed every country subjected to war this century has followed this pattern.
Normally only the rich and powerful would be privy to this little “secret” and the old tie network would oil the wheels for those select few to cash in. With the power of the internet it has now become almost common knowledge.
So what are the risks?
No one really knows when the Iraq Dinar will recover. Months, years or decades no one can really say. This is not a get rich quick scheme, this is putting your money in for the long haul.
That said, it is without a doubt a very real reason why the Americans are there is the oil. Also the big global American companies with their government contracts to rebuild the country, would not be investing resources if they could not see a vast profit at the end. The country now has a democratic government which contains the opposing Suni and Shi’ite factions. A monumental step towards political and social stability.
The money could be changed before the profit can be realised. This is true but unlikely. In 2003 the Iraq Dinar (IQD) was changed to the New Iraq Dinar (NID). Funded by the Americans and printed in Britain by the De La Rue company. Firstly to remove the image of Saddam from the currency, but also to economically unify the north and south who both operated local regional currencies. A major inroad towards economic stability and growth.
Should you invest? I am no financial expert, but it would appear that the right elements are there. A collapsed economy, in a country with vast mineral and agricultural resources, with the world's superpower investing to rebuild it.
If you find the proposition of putting some money aside in a hope that you will find the pot of gold at the end of the rainbow. This is as wise an investment as playing the lottery, something which we all do.
Roughly speaking £500 will buy you 500,000 NID. This is an un-regulated market in which the banks and financial institutions are not involved. As I said the currency at the moment is not liquid so exchange rates are set by the seller. When the currency recovers only to 20p per Dinar you will have made £100,000. If it recovers to its former rate you will own £865,000. Invest £600 today and sometime in the future you really could be a millionaire.
You could of course win £1,000 by the weekend in our FREE to enter draw, Grab a Grand. Just click here to be taken to the details page.
business
# posted by Tommy M @ 1:51 PM 
