Written by: Mcptrman
A friend of mine came in my shop yesterday. He said, “aren’t you into that Iraqi Dinar Investment thing”. A friend of his told him it is about to RV and make him rich.
This is what I told him.
First off Yes I own the Dinar and have been buying since ‘06 and now hold more than the average person. BUT, I don’t look at this as an investment but rather as a gamble.
When I bought my first Dinar the country was threatening a civil war, no government in place, killings every day. As the years went by things kept getting better and better so I gradually increased my holdings.
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Currently they do have a government in place (sort of), although it is considered the most corrupt in the world. The U.S. government did not happen overnight either though. Killings you really only hear about once a month now. They have increased their oil production to 3 million barrels a day and will probably be 10 to 12 million barrels(#1) a day in another 5 years.
They were considered to have the world’s 3rd largest oil reserves back in the 1970’s. This is the last time they actually did any oil exploration. I would not doubt that with the new technologies of today they will find a lot more oil in the ground. OK with that said I have been keeping up a bit with this so let me put it into perspective.
Bad things as I see them:
(I am sure there are more negatives, just none come to mind at this moment)
- GOI, the most corrupt government in the world.
- GOI, still has no stable government
- There is NO guarantee you will see a high RV or make any money
Good things as I see them:
- Iraq will probably exceed the oil production of Saudi Arabia in the next 5 years or so.
- Iraq currently has the #1 natural gas reserves in the world
- Iraq is the #1 exporter of dates
- Iraq has lots of water for that region
- Iraq has 65 + billion dollars in reserves(as versed to the US being in debt)
- Iraq has lots of gold mines, I am not sure how many
- Iraq’s unemployment will decrease because the big oil companies have to hire I believe it was 3 to 1 iraqi’s for every foreign person.
- Shabbi has stated several time that the IQD will have an increase in value (even once or twice stating that is will be the value of what is was back in the 70’s. Shabbi is head of the CBI and when he speaks ... everyone listens.
- CBI WILL introduce smaller denominations, which if they do not RV their currency in some fashion then it will make their smaller denominations useless. No one can/ will be able to carry enough smaller denominations in their pocket to even buy a coke.
- CBI is autonomous from the GOI (much like our federal reserve)
- The history of the value of the Dinar over the last 70 years on the downside was .33 cents up to 2003, (I told him heck I will take .01)
- Iraq has something like 75% to 85% of their debt written off by foreign countries. (I personally do not believe they did that without expecting something in return)
To sum it up I don’t want to NOT own some Dinar. I truly believe the odds are you will make at least 10% to 15% (hopefully enough to cover any exchange costs) and the Upside you could make as much as 1000%. SO, In my opinion, the odds are way in our favor and it is better than a lottery or casino. If you lose there you won’t get your money back.
Please feel free to add to my list.
BTW, my friend just called me on the phone just before posting. He asked me where to buy, I told him the local bank.