A lot of people are claiming that investment in Iraqi Dinar (IQD) is one of the most sure fire low risk high return, get rich quick scheme. Iraq is one of the largest oil producer in the world. Initial investment is very low. You can get a million IQD for less than a thousand Dollar. They are in the midst of war and chaos but things are bound to change (in a positive way). The Iraqi Dinar during Saddam’s reign was $3.22 per dollar. Soon IQD value will soar and we can make a killing and retire early.
Good sales pitch.
>>>>Clearing up the smoke screen.
Iraqi Dinar during Saddam was not open to trade. It was pegged at $3.22. A number pulled by Saddam perhaps from the thin air. It wasn’t real.
The New Iraqi Dinar (IQD) was introduced in 2003 by the Coalition Provisional Authority. At this moment it’ll cost you more than IQD1,200 to buy 1 US Dollar. A very weak currency, it is.
So you don’t expect the Dinar to raise to its 1982 peg. So you think a rise of a cent of IQD value will give you large profit. Theoretically you are right. But.
But, Iraqi Dinar is not freely traded. At this moment it is not being used in any significant international transaction. There are very few (I am tempted to say none, but lets be optimistic) bank or foreign exchangers that are willing to exchange Dinar outside Iraq.
If you check the sites offering “better future” by IQD investments, they only sell IQD not buy them.
>>>>To Buy Or Not To Buy.
I have an easy answer to this but lets see the options.
1. You cannot get rich quick with IQD investment. Even if the IQD value rises 2,3 cents after you bought them. Not in the near future. The reason is no exchanger is buying it at the moment.
You can try to sell them to other potential “investors” at E-Bay though, if you are lucky enough.
2. There is a possibility of the IQD value gaining momentum and raising in value and finally be traded. If this happens, you can probably retire early, as soon as you sell all your IQD. But this will not happen anytime soon. It will take time, a lot. 5,6,7,8 years. Probably more.
3. Scenario (2) might never happen. Because no matter how low a currency value sank, it can always sink lower.
So, if you have money that you can absolutely afford to lose, you can buy and keep the IQD. Sometimes you might be able to make it big with it.
If you are, however, looking for short term, low risk investment, look elsewhere.