"Is the Dinar a Scam?" From Recaps Archives

For the "Negative Nellies" who told us the Dinar is a Scam

Emailed to Recaps  Originally Posted 11/03/2013 

Do you have anyone in your life that told you investing in Dinar is a scam?  Just show them this!

We've all heard from someone that investing in the dinar is a scam:

If there is a scam going on, it is the dream stealers trying to rob you of hope. In actuality, they are missing out on the blessings that come with dream building with one's spouse. That alone is very rewarding, and very telling, into how well two soulmates are really thinking on the same page.

If there is a scam going on, it's the US govt, Iragi govt and UN holding back info ... delaying ... the invitable. But post RV/RI you'll be praised for your insite into this investment by the nay-sayers. (Hindsite investors).

You want an example of a scam? Play the lottery.

The odds of winning are astronomically against you. That scam plays on the hopes of the un-informed, or desperate, seeking great rewards without understanding the odds. Governments make unimaginable dollars preying on lottery ticket buyers.

Whereas investing in the dinar, we can attempt to track international politics and become somewhat educated on our investment. We are talking the currency of a resource rich country torn by a former dictatorship, war and civil unrest.

In time, this RV/ RI will happen. Maybe not when we expect it, and maybe not in the manner we expect it, but the value of the Iraqi dinar will rise.

And eventually, we will see our financial rewards. But with the lottery, as those little balls keep tumbling, the odds of winning never get any better, and you never gain any additional insight on what numbers to pick, and you have to keep buying more tickets for a fresh "chance to win."

We've all heard it's risky:

Bunk. The most you can lose in dollars, is the amount invested, and that is only if you actually lose your dinar. That is right ... if you misplace the currency. After all, dinar dealers have a buy-back policy, right?

Does your financial planner or 401K manager have such a policy? 'Fraid not.

You want to talk risky? Buy into the stock market, without educating yourself. And what can you really learn from a prospectus? And remember, most financial planners are commissioned salespersons. Ask them if they make their living on their commissions, or on the results of the products they invest their clients money into. You'll be shocked by this scam.

Let's say you timed the market well, and bought General Dynamics a year ago at about $35/share. And now it is about double that. Forget trading fees, ... you doubled. So if you had purchased 5 shares, for $175, you would now have ~$350. Remember these numbers. Double your money in the stock market ... but limited realization in terms of dollars gained, but the limited number of dollars invested initially. 100% rate of return in one year.

How about SSI?  (Social Security Insurance)

Counting on this for retirement supplement, now that's another risky government scam. 'Nuff said.

How about Real Estate?

Let's compare it to purchasing dinar. Build a spec-house for 200,000 and try to market it for 300,000. That is a 2:1 ratio. Or buy a foreclosure house. Say EFMV $150,000 purchased at auction for $100,000, plus holding costs and closing costs, so max realized gain is maybe $50,000 - again a 2:1 ratio.

But you may hold longer than anticipated, (more expense) and lower your selling price and only make $25,000 - now you’re at a ratio of say 5:1. That is saying that for every $5 invested, you only made $1.

If in the example, you are upside down in real estate, you've invested 150,000 and got out at 125,000. Now you have lost $25,000. Now compare that to the dinar. In the dinar, you only risk what you invest, and to that I take you back to Dinar Dealers buy-back policy. Further, you did not have to start with a $100,000 investment to try to gain $50,000.

How about buying an estate property below EFMV, and needing to sit on it for three years before reselling it. Even if a profit is gained, the rate of return annualized needs to be divided by three. And was there a positive or a negative cashflow on that property for the three years you held it?

Again, compare that to the dinar. The only argument against the dinar here is that the amount invested was stagnant while you held it.

And if you had the amount of your dinar purchase in a CD right now, could you get 2% return? I doubt it. And to get 2% you're probably looking at a 5 year hold. 'Nuff said.

We've all heard negative news soundbites:

The few soundbites I've heard were so trite, they were laughable. That's not journalism ... it's sensationalism, not credible research. It's been the blind leading the blind.

What about how long we have to wait for the RI to exchange.

If you are in an employer based retirement system, how long do you have to work, in terms of years, before you become retirement eligible? And what kind of return do you get? Do you know how to track it? Have you done your homework there? Now that might be a risky investment ... a lifetime

Oh, you don't have an employer based retirement system? Okay. Then look into your Roth or traditional IRA or other "paper assets" in your portfolio. What did you say? You don't have a portfolio? Or did I just hear you say your portfolio was cut in half in the past two years, as well as your annual earnings? Wow. That was a risky investment, ... very risky.

We've all heard it's an pyramid scheme:

 Go to work tomorrow to your JOB (just over broke). I'm all for capitalism. I believe in rewarding those that take the calculated risks, those that create jobs for others, those that stabilize local economies. But when you look at the company ladder, well, there is your pyramid at it's best.

There are the nay-sayers that say the only ones making money on the dinar are the sellers, such as CBI and dinar dealers. Well, time will reveal the truth on that point of contention.

So let's talk dinar.

100,000 dinar mailed overnight from dinar dealers  is approximately $140, + 24 UPS fee, + $1 for the money order = $165 invested. This is a relatively small amount to invest in anything.

 Presently the rate is $1=1170 IQD, or $0.0008547/dinar (less than 1/10th cent per dinar). But with shipping, etc, ~= $0.000165 (a trifle above 1/10th cent per dinar.) So we'll call it $0.001 = 1/10th cent per dinar.

If/when there is an Re-V/I/D, look at the numbers. We've heard lows of 1IQD at $0.86 to highs of $3.86.( or much higher)  For easy math, I'm just using RV at 1 IQD = $1. That means you $165 investment is now worth $100,000, pretax.

Okay, you'll have some expense to exchange ... minimal in big scheme, but may take your total investment to say $500. So you turn $500 into $99,500 (pretax).
You did not have to risk investing 1,000,000 to make a potential 100,000, or $125,000 to make $25,000.

Better yet, you were not excluded from the opportunity to make this $100,000 because you lacked the $1,000,000 in cash or credit to invest.

And if the increase in the dinar on the currency exchange boards is a gradual float, and not a spike from an RI (not saying this is likely) you will have to decide for yourself when to cash in. But in this scenario, all it needs to do is increase to 1 IQD = 1 penny, and you have a ten fold return on investment, grossing $1000 on a $165 investment. Have your financial planner or realtor or banker deliver that return! Not gonna happen.

Still skeptical? Stay with the gradual float. At a dime, cash in on 25,000 dinar note. Gross $2500 - $165 + fees and tax so say you clear $2000 How is that for a rate of return? Initial investment of $165, net $2000, but n0pot done yet ... still holding 75,000 IQD and you're "playing with house money." The rate of return calculated on any gain, is infinite ... because you already made more than your initial investment on the first cashout.

Now who cares if you have to wait a few years for a float to reach $3.00+. So $3.22 x 75,000IGD = $241,500 (pretax) is pure profit. Understand i am not an advocate of a gradual float, and favor an RI, but wanted to include it in this post, for the negative nellies to chew on as a worst case scenario. I'll take that return!

Compare the dinar to CDs. No comparison.

Compare the dinar to IRAs/MFs/stocks/bonds, etc. No comparison

Compare the dinar to the lottery. No comparison. How can I say that? In the lottery, the numbers predicate the number of winners, typically one, if any per drawing. But with the dinar, all that exchange are winners. Thus, again I say, no comparison.

Compare the dinar to real estate. I've had great returns and can even mathematically show you infinite rates of return, but for the vast majority of people, real estate transactions returns vs the returns on the dinar investment, well ... no comparison. Further, how many across the globe are in trouble financially as we speak, because they thought their home was their biggest asset, only to now realize that their mortgage and over-leveraging is eating them up, both financially, and emotionally.

Compare the dinar to pension plans. Took you 20, 25, 30, 35, etc years of your life, and you can only receive pension payments as alloted, under someone elses discression. So, ... no comparison.

I'll conclude with these thoughts.

For the negative nellies that say you were scammed when you bought into the dinar investment, with the $165 they did not invest, they may have purchased them something else. Lets say they bought dinner and a movie for two, or some clothes they'll only wear a few times .

So when your investment is eventually worth (Example only) $99,500 pretax, I hope they enjoyed the dinner, movie and clothes that now cost them ~ $99,500.

And I'm not done yet. Let's say you pay your taxes and tithes, and then pay off your remaining mortgage, freeing up that $650/mo payment for the next 180 months of your life. Look at how much "not buying dinar" now cost the negative nellies.

So I'm willing to give up a night out with my wife and new shoes. In fact, the reward potential in my household said ... what else can we postpone pre RV/RI, ... to not have to postpone life any longer?

If you followed all the way through this post, thanks for reading. I needed to vent. I needed to take the frustrations of listening to negative vibes and multiply that with negative reasoning, to produce a positive outcome.