So you have probably heard about the Iraqi Dinar Currency but what do you know about it?
I constantly am reading news headlines about the Iraqi Dinar soaring once again in value vs the US Dollar, however how much has it really moved against the dollar? Plus is doesn’t help the Dinar isn’t even a pegged currency on the world market.
That said various message boards like Investors Iraq, Iraqi Dinar Rumors, and Investors Iraq, just to name a few are constantly touting the Iraqi Dinar as a currency investment that will make you rich.
That said people have been calling for the “revalue” of the Iraqi Dinar at a 3:1 value with the Dollar meaning for every million of the New Iraqi Dinar someone picks up for $800 - $1200 it will be worth 3 million US Dollars. Sounds too good to be true right?
If you’ve done any research on the topic you may know that the Iraqi Dinar is a currency issued by the country of Iraq, I struggling country I may add. The Iraqi Dinar is not traded on any legitimate Foreign Exchanges, although there are dealers around the world selling it though they are largely unregulated. That doesn’t mean they are not legit nor does it mean the currency you purchase from them is not legit.
It does however mean you should exercise due diligence when purchasing the Iraqi Dinar if you choose to do so.
If there’s no market for this currency that most investors would recognize as a regulated exchange forum what does that mean actually? How is the value rising if there’s no official legitimate market?
These press releases I’m talking about aren’t released from the AP or any well established or well known news organization, they are issued by Dinar sellers like Sterling Currency Group LLC or Tampa Dinar. They are issue by currency dealers launching blogs on the topic. It’s generally noticed on the bottom of a press release who is releasing it.
These releases are generally “somewhat” oriented in the area of “investor protection” but more so pushing their product / service to customers. It’s more an advertisement disguised as a press release.
One thing that investors should consider before making a purchase, in addition to Iraq’s Political climate, economic climate, and security concerns as a country, as well as the general volatility in world markets, especially world currency markets. Investors should also be assessing their tolerance for risk as rates fluctuate on a daily basis, because of the instability in the region the Iraqi Dinar could fall apart and go to zero, or it’s possible it will never be a widely exchangeable currency leaving you no option but to sell it back to that very dealer who sold it to you at a substantially reduced rate.
Unlike Forex markets purchasing hard currency ie actually you buying the physical foreign currency you can hold in your hand is always going to have higher markups than buying on the electronic forex markets. Anyone who plans on purchasing any physical currency, but especially so with the Iraqi Dinar, should do their due diligence before dipping their foot into this untraditional market.
As with any industry there are unreliable dealers and scammers out there. To avoid being a victim of a scam anyone considering investing in the Iraqi Dinar should spend some time researching the dealers. Before making a purchase. Here are some things to consider…
1. Do they sell authentic notes with a Certificate Of Authenticity
2. Do they show you how to, and encourage you to check your notes yourself to verify them as authentic and not just take their COA and their word for it?
3. Do they Buy as well as sell Currency?
4. Are they Treasury Registered?
5. Do they have a history of satisfied customers or a high ebay rating score?