Does anyone think that investing in the Iraqi Dinar is a good investment?

Question

Does anyone think that investing in the Iraqi Dinar is a good investment?

Answer 1

I'm not an expert b I would base your decision on who might be   the new president? If mcain is our next prez then you stand a better chance than with Obama because Obama wants to have a gradual withdrawl of US troops. MCain wants to stay for 100years and if he succeeds in that then I think the implications are huge because that would mean there will be atleat 4 more yrs of american influence in Iraq which will provide Iraq's banking system and Oil industry with security.  The Iraq Dinar is suppose to be backed partial by US dollars but if they open up the oil wells and sell the oil by the American dollar like Bush wants them to then they will have more American dollars deposited into there central banking system that will inevitably make the Dinar worth more because it will have more dollars to back it up.  Right now I think 1200 or so Dinars is only backed be 1dollar but if the oil start flowing then there will be more dollars in there bank vaults than there are Dinars in todays circulation. This would happen real quick practicaly over night

Answer 2

Put your money in the euro.

Answer 3

I will give you the same response I have given to the guy asking to invest in zimbabwean dollars. You need to learn about currencies, inflation, and fiat money. Fiat currencies are not stocks, they have no underlying worth. The more is printed the less its worth. In order for it to appreciate, it will need to be tied to a gold standard or something of worth(which its not and wont be), and the money already in circulation needs to be destroyed (obviously that will NEVER happen). Therefore, it will NEVER appreciate significatly in real terms, sorry. Many countries have experienced these types of inflations and what usually happens is new bills are printed that drop all the zeros in the end, the old bills stay equally worthless.

Answer 4

I've seen those Iraqi Dinar investment ads.  

I'd ask yourself - how much will it be worth if the country is ruled by a couple dozen terroristic warlords in 10 years?

If you wanted to roll the dice and see what a couple grand would do, I doubt if it would be a big deal, but I'd be expecting to lose it if it were me - not just because of the unstable situation, but also depending on who you try to go through to get the dinars.

I'm no expert on this stuff - just adding an objective viewpoint.

-Kevin