Why buy Iraqi Dinar?
The simplest answer is that
this could very well be the investment opportunity of a lifetime.
Is this a high risk investment?
You bet. Is there a potential for high returns that equals that risk?
I think so and I’ll tell you why. If you are not comfortable making a high
risk investment, then Iraqi Dinar is not for you, plain and simple. If you
understand that there is substantial risk involved and are willing to assume
that risk then read on.
Many of us who pursue high risk
investments do so because we recognize that along with high risk exists the
potential for high returns. The question to ask here is what is the
potential return? The truth is, none of us can know for sure and the most
any of us can do is speculate.
But let me provide you with
some historical and geographical information on which to base that speculation
and you can begin to form your own opinions.
An
historical and geographical comparison: Kuwait
Prior to Saddam Hussein’s invasion
of Kuwait in 1990 one Kuwaiti Dinar was worth $2.79 U.S. Dollars (USD).
After Saddam Hussein’s invasion of
Kuwait the Kuwaiti Dinar plummeted to a value of $.10 on the Dollar.
When the U.S. lead coalition removed
Saddam the Kuwaiti Dinar could be purchased for pennies on the Dollar. Today
one Kuwaiti Dinar is worth $3.42 U.S. Dollars (USD).
Keep in mind that Kuwait is the
third largest oil producing country in the world…Iraq is second.
The
historical and geographical scenarios playing out in Iraq today:
That’s right, Iraq is the second
largest oil producing country in the world or was prior to the First Gulf War.
Iraq still has the 2nd largest oil reserve in the world. Saudi Arabia has the
first largest oil reserve in the world.
Before Saddam came to power the
Iraqi Dinar was worth $3.30 (USD).
After Saddam lost the war with Iran,
the war with Kuwait and after the country was impacted by years of UN Sanctions
the Dinar was down to its lowest exchange rate ever. (See graph below)
Prior to the start of Operation
Freedom, after two wars and over 10 years of U.N. Sanctions, the official
international exchange rate for the Iraqi Dinar was $0.31 (USD).
Today the exchange rate for Iraqi
Dinar is close to it's lowest point in history, .00068, after bottoming out at
.00027. Of course you have to be in Iraq in order to get that rate.
At the present time it's only a local currency. Speculators are waiting
for high returns should it to become a global currency again sometime in the
future.
Acquiring Dinar here in the states
is primarily done through independent dealers like myself since it isn't being
carried by banks or world currency exchanges like the Forex. You can
easily pick up 1 million Iraqi Dinars from a reputable dealer here in the States
for under $1000 or $.001 (USD). That’s 1/10 of 1 U.S. penny. Often it is
less.
