If you do an internet search on the term “Iraqi Dinar”, you’ll uncover a wide array of websites which have a really diverse message regarding this much maligned currency. Some websites promise that this is the one greatest investment ever and that if you miss out on this opportunity you then are a fool. On the same results page, you’ll find a number of websites directing to the “Iraqi Dinar Scam” which seem to point to the fact that only a very great fool would own this currency in their investment portfolio.
The difference of opinion does not end there. It’s also in major media and financial outlets. Recently when reading through the official website of the stock exchange NASDAQ, I stumbled on a number of warnings and articles informing investors to stay away at all costs any type of investment in this currency. At about the same time, the host of the popular Tv show on CNBC, Jim Cramer, recommended buying the money as a really smart and wise play in investing in Iraq, noting that he’d usually tell people to stay away from investing in post war countries, however that the Iraqi Dinar was “different”.
So which is it? Is this currency the worst investment strategy ever or is it the greatest thing since sliced bread?
The real answer is no one knows, but there are a few facts which we can take away from these arguments that can assist us cut through the strong rhetoric and hopefully leave us with some beneficial conclusions. The first argument that I always seem to come across is that this currency is a scam. I have seen it over and over again, but there’s not much context or clarification to this comment which can deceive people.
How can a country’s currency be a scam? Some people might think that US Dollars the way in which they’ve been rolling off the printing presses the last few of years are a scam, but last I checked I had no problem purchasing goods and services with them. If you think that the US currency is a scam also, I’d be perfectly willing to take all that spare cash you hate so much off your hands.
I think what people mean by this statement is twofold. The Iraqi currency has certainly been over hyped over the past couple of years, the hawkers and dealers saying in their website grand visions of becoming millionaires overnight. Although I wouldn’t clarify that as a scam, I’d certainly say it’s highly unlikely. The kinds of massive run ups in the value of a country’s money in post war economies have typically taken years. So whilst these statements might be over the top and misleading, I would barely place them in the “scam” classification.
Another possibility, which I’d definitely agree with is that there are a few sellers of Iraqi Dinar money around who’re not to be trusted. Several dealers have been caught selling worthless old Saddam Hussein regime money that might be a good souvenir, but will not make you any money in the foreseeable future. Some dealers have also been recognized to sell subpar, mangled, and even counterfeit notes to an unsuspecting public. You will find even some stories which there are dealers who are sent money who never actually send the currency. Just running off with the money and taking the web site down a few weeks later before setting up a new web site under a different name.
While that is something that is certainly to be watched out for, does that mean that a major currency of a nation with a few of the greatest reserves of oil and natural gas in the world is a scam?I certainly don’t think so, and making statements that this investment is a scam is very comparable to saying used cars are a scam simply because you had a bad experience with the dealership up the street. Do not get me wrong, there’s a very real danger of dealing with the wrong type of person when trying to acquire the Iraqi Dinar, I would do your research and make sure that the person you are purchasing from is reputable and can be trusted before you trust them with your hard earned money.