Ok, so please blow up this idea.

One of my friends thinks he is making one of the best "trades" of his life, by exchanging dollars for dinars at the airport. I think he even went so far as to say he could return 3000% over the next few years.

Anyone care to refute my bozo friend?

google search 'iraqi dinar scam'

How can we refute him if we don't know why he thinks it will return 3000%?

If he compares the current price with the price pre-war he has fallen for the Iraqi dinar scam.

Iraqi dinar lol

3000% return for the Iraqi dinar against the dollar sounds irrefutable.

Don't give your friend any money.

Ironically the strongest currency last year... the Afghanistan Afghani... serious.

I was expecting food in here

In all honesty, I don't think he has a "strategy". But supposedly he purchased $5,000 worth of the Iraq currency from some website.

I guess the strategy would be summed up from this simpleton blurp from an article in Boston Magazine:

"Not long ago, the Internet buzzed with rumors that Donald Trump had sunk $30 million into the Iraqi dinar. The fact is, most serious investors wouldn’t touch the stuff. Those who do are generally average joes, people who plow no more than a few thousand into their portfolios. The abiding hope among such investors is that as stability returns to Iraq, its currency will be revalued—perhaps even reach parity with the dollar. If that happens, the Nebraska housewife with 800 bucks’ worth of bank notes stashed beneath her bed would wake up a millionaire. It’s this, the possibility of an abrupt and staggering windfall, that keeps people coming back for more."

http://www.bostonmagazine.com/articl...ful_of_dinars/


My friend maintains that since the "world powers have billions invested in Iraq" - they will ensure that, over time, the country remains stable, becomes democratic, and the currently will stabilize.

Your friend has no idea what he's talking about. Clearly financial Darwinisme at play here.

It was being bid up like crazy on the desk today!

I agree. Care to share specific reasoning? I want to rub it in his face, as he is so proud of this incredible "investment" that he discovered.

You could start asking him why the Iraqi Dinar would go up with all these billions invested in the country while all the other major currencies have trillions invested in them. Wouldn't the world powers want to make sure these currencies stay stable too?

Also, ask him where he got his 3000% return target from. If it has anything to do with the price of the old dinar you can laugh in his face because the old dinar has nothing to do with the new one.

But, I'm still wonder what his reasonings are. It's hard to laugh at people if you don't know why they're thinking certain things.

Dinar is a sound economic bet vs a new york state lottery ticket...
Its really an opportunity cost decision..Dinar is undervalued on X time frame..
X might be 200 years though..
If I only cared about my grandkids I might consider dollar cost averaging usd for Dinar...or set up a will that grandkids can't sell your position..its almost a sure bet..no BS...
Who gives a **** what is sure to happen when you die though. volatility is too much, you would dump before you die. Even if you didn't your kids would cash out before the EV+ situation came about.