"Currency web sites absolutely make money off of rumors. Right now they are the only ones generating large profits. The competition for sales in this market is enormous and therefore the bigger the rumor the better chance for sales" Iraqi Dinar Value and the Rumors, Speculations, and Gossip That Surround It ...
George S. Hughes has over 15 years experience in the legal, financial, and banking fields. He currently does consulting for a dozen companies in the fortune 500. One way he loves to give back and use the knowledge and experience he has acquired is to write informational articles to assist people with their money and legal problems.
If you do an internet search on the term "Iraqi Dinar" you will come up with a huge number of sites that have a very diverse message regarding this much maligned currency. Some web sites promise that this is the single greatest investment of all time and that if you miss out on this opportunity then you are a fool. On the same results page you will find a number of web sites pointing 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 is also in major media and financial outlets. Recently when reading through the official website of the stock exchange NASDAQ I came across several warnings and articles telling investors to steer clear at all costs any kind of investment in this currency. At about the same time the host of the popular TV show on CNBC Jim Cramer recommended purchasing the money as a very smart and prudent play in investing in Iraq, noting that he would usually tell people to stay away from investing in post war countries, but 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 nobody knows, but there are some facts that we can take away from these arguments that can help us cut through the strong rhetoric and hopefully leave us with some worthwhile 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 is not much context or clarification to this comment which can mislead people.
How can a country's currency be a scam? Some people might believe that US Dollars the way they have been rolling off the printing presses the past couple of years are a scam, but last I checked I had no problem buying goods and services with them. If you believe that the US currency is a scam as well I would 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 stating in their website grand visions of becoming millionaires overnight. While I would not clarify that as a scam, I would certainly say it is highly unlikely. The kinds of massive run ups in the value of a country's money in post war economies have usually taken years. So while these statements might be over the top and misleading I would hardly place them in the "scam" category.
The other possibility, which I would definitely agree with is that there are some sellers of Iraqi Dinar money out there who are not to be trusted. Some 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 future. Some dealers have also been known to sell subpar, mangled, and even counterfeit notes to an unsuspecting public. There are even some stories that there are dealers who are sent money who never actually send the currency. Just running off with the money and taking the website down a few weeks later before putting up a new website 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 some 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 similar to saying used cars are a scam because you had a bad experience with the dealership up the street. Don't get me wrong, there is a very real danger of dealing with the wrong kind of person when trying to acquire the Iraqi Dinar, I would do your research and make sure that the person you are buying from is reputable and can be trusted before you trust them with your hard earned money.
