I ran across a site today (dealorbuydinar .com) that is selling dinars and disagreed with most of what he was saying. Here are his statements and my responses and thoughts on this overly optimistic view on the dinar!
While Saddam was in power the Iraqi Dinar reached a high of $3.30 US Dollars and just prior to his removal, the Dinar dropped to $0.31 (USD). TO obtain denar now, you only need to pay $.001 or 1/10 of a penny (USD).
Think about the returns if an your were to buy $10,000 worth of dinar at the current rate. $10,000 at .001 would get you 10,000,000 (million) Iraqi Denar. If someone were buying that kind of quantity I could sell it for considerably less but let's just use .001 for the sake of discussion. Now, if the Dinar goes up to just 10 cents on the dollar, that same 10,000,000 Dinar would then be worth $1,000,000. Yes, one million dollars.
The above is pumping you to think that the Iraqi Dinar will be worth $3.30 USD and claiming that was the amount it was worth back when; hogwash! It was never worth $3.30 outside of Iraq and the only people who could enjoy such rates were those close with Saddam at the time. Don't be fooled into thinking that it's going up to anywhere near $3.30 or even close to a dollar for that matter. In fact, the value of the dinar has not even kept up with inflation! A low interest bearing CD bought a year ago would have earned you more than any increase in the Dinar!
Shortly after the US removed Iraq from Kuwait the Kuwaiti Dinar rebounded and the investors who took the risk of investing in the Kuwaiti Dinar made an incredible return on their investment. Those who invested a sizeable amount of money became millionaires virtually overnight.
Don't be fooled into thinking that just because another country's currency may have gone up, that it's given this will as well! They are NOT related and don't fall for this hype!
It is logical to deduce that as the two most populous countries are emerge as industrial powers their demand for oil will continue to rise as will the ongoing demand for oil from other industrialized nations. This can only lead to increased oil sales for oil producing nations particularly for the nation that has the world's second largest oil reserve, Iraq.
Come on, it is illogical to deduce that any such demand will have a direct effect on Iraq or the currency of Iraq at all. In fact, alternate energy is being investigated and oil is on it's way out!
There are many good sellers online. Ultimately you'll have to the select the person with whom you feel most comfortable. Most prices are within $50 to $100 per million of each other so price is not the primary issue in selecting a dealer online in my opinion. Most dealers are selling at relatively inexpensive rates. Whether you pay $900 per million or $1000 per million is not as significant in the long-term when you are looking to make the kind of return that was discussed earlier.
Sure, forget about how much you are tossing away and only think about the future returns, a future which only exists in the minds of those selling dinar and looking to have you buy their currency.
An issue of greater concern is being able to find a reputable dealer whom you trust. If you lose all the capital you were planning to invest in the Dinar to an unscrupulous dealer, you didn't save a thing. Whomever you select to purchase your Dinar from, is registered as a currency dealer with the U.S. Department of Treasury. This offers a layer of security and some level of screening that has already been provided to you by the U.S. Government. It also creates a level of accountability for the dealer.
Hogwash again! Anyone selling a currency online has to register with the Treasury and it means nothing! There is no approval process, you just have to tell them that your doing it. You don't have a choice and anyone can register. This is a way for many selling dinar to trick you into thinking that they have been approved by the US Government!
This is an important question. If your money goes up in value but you have no place to exchange it, it would essentially be worthless. At this time banks are not exchanging Iraqi Dinar. That is also why you are able to purchase the Dinar for less than .001 or 1/10 of a penny on the dollar. When the banks do begin exchanging it is anticipated that the value of the Dinar will take off. It's comparable to a pink sheet stock moving up to a higher exchange. For right now, the Dinar is not being traded on an exchange.
When the Dinar does go on the world market the banks will start carrying the currency. How soon after is only a guess at this point. If your money goes up in value while the banks are not carrying it you'll have to get it exchanged through a dealer like myself just like you would go about buying it now only the reverse process.
Another option would of course be to fly to Kuwait or Jordan and go to the currency exchange and get them exchanged yourself. For many this may not be a viable option. But it is an option for those of you who are able to do so and would rather do it themselves than to pay any of the commission to have a dealer to do it for you. However, if it goes up in value it may only be a short matter of time before the banks begin exchanging it again.
Come one, stop it already, will you! Just go to your local bank and sell your Iraqi Dinar there! Yes, you can buy and sell from a bank right here in the US!