The Iraqi Dinar Speculation Thread
 

The Iraqi dinar has so much potential for the price, but thats only if you have the spare cash that you may dispense and forget about it for the next decade.

What people are saying:
Buy the Iraqi dinar for ~$750 per million dinar.
If dinar can just get its exchange rate to $0.10 to the dinar, your million will be worth $100,000


Now here's my speculation. Unlike what alot of ppl are saying, I don't see the Iraqi dinar appreciating versus the dollar anytime soon, not a few weeks, not a few years. The big IF is IF after the Iraq civil war is over, whatever the outcome, they decide to continue using the newly British printed dinars then I would say from there on we can see some hope. But with whats going on, my prediction is we could be facing a good decades time or more before the dust settles in Iraq. Many argue the oil Iraq rests upon will be the ultimate leverage, but then again I don't believe other oil rich nations such as Iran are in such incredible shape right now. The dinar, I believe, is set at a fixed rate. Now IF they entered the foreign exchange market, then supply and demand could takeover and then we'd more than likely see some slight appreciation, but keep in mind it isn't wise for a (re)developing nation to use a floating currency.

Fact of the matter is, we'll likely vote in a less warmongerly president 2 years from now, and abandon Iraq - who knows what that could result in. I wouldn't be the least bit surprised if Iraq splits completely into 2 or even 3 seperate governments and if that happens, the odds are extremely low that either of which will continue to use the Dinar as their currency.

So now lets say all ends good, Iraq remains one nation and stays democratic. Well certainly Iraq learned the lesson at this point to continue selling that oil with US dollars or suffer the consequences yet again. Now we have a nation that depends on their supply of oil for economy which rests upon the outcome of the US dollar value. From here, start taking into account our insane trade deficit, halting economy, and so on and so on...


My conclusion is this. If you want to make a quick buck, the only way the dinar will present that to you is if you accumulate mostly worthless "dirty dinars" for cheap and sell them on ebay. But if you have the extra $750 or so, then why the hell not - go for it.


Your thoughts?

Re: The Iraqi Dinar Speculation Thread
 

about two years ago, i went in for a million. i paid 650. i knew it was a total gamble, but i figured why not. if it doesn't pan out, so be it. i actually ending up learning so much about the country by reading articles and researching, it was almost worth just for that. believe it or not, given all the chaos going on there, there have been good things happening and some positive news on the dinar side as well. it is still a one in a million chance, but i guess that is all i am hoping for.

if you want some sources of information, let me know.