obvious scam

D

dafugginman

but just for my own edification, how would one trade currencies such as this. would any IB do it?

Become A Millionaire, One Million in One Day!

I am so glad you decided to purchase this info. You will thank me for it I’m sure. As you know, we are in a war with Iraq right now. Did you also know that Iraq changed it’s currency to the Dinar? All the other currency had the face of Saddam on it. Now, the current value of their new currency is only about 0.0007 of the American dollar. You can buy $1,000,000 worth of Iraqi Currency here: http://www.usdinar.com This is the cheapest place to get it.

Ok, so here is what is going on. Everyone knows that Iraq has all the OIL. That just goes without saying. Did you also know they have a huge supply of Natural Gas as well? It doesn’t really matter, but it helps. Right now Iraq is in the middle of becoming a Democracy. As soon as they have everything up and running again, which will be this year according to analysts, the value of their Dinar will go up. It just will. It’s inevitable. Here is another example of the last time this event happened. The Persian Gulf War. The value of the dinar was as this analyst states: “Investors remember that the Kuwaiti dinar plunged to 10 cents after Iraq invaded Kuwait. It's worth $3.39 now.”
The Iraqi dinar sold for as much as $3 before the first Gulf War. And Iraq sits on the world's second-largest oil reserves, an enormous asset. "Even if it goes up to one penny per dinar, that's a lot of money," says one analyst.

Potential Value increase of a 1 Million Iraqi Dinar holding
If the value of Iraqi Dinar increases to: The resulting value of your 1,000,000 Dinar would be:
$0.01 $10,000
$0.10 $100,000
$0.20 $200,000
$0.50 $500,000
$1.00/Iraqi Dinar $1,000,000

Here is a quote from an analyst: “The historical value of the dinar from 1932 through 1982 fluctuating between just under $5 and just under $3 per dinar. Gee, the dinar is now worth only $0.0007. Could you imagine if it made it back anywhere close to its historical range? Why you'd make a killing! Even if the dinar climbed in value to just one cent, that would represent a 1,329% return!!! Surely, it can go up at least a penny. Currently, a 250,000 dinar note is worth about $171. At a penny per dinar, the same note would be worth $2,500 “

Are you getting the point? There are several banks and financial institutions that are doing just this. They are purchasing vast amounts of the new currency. There are those who are skeptical though. Those that think Iraq will never get it’s act together and make things work. I think I would rather gamble on a small investment to make a ton of money than think that an entire country is just going to disappear off the map. The currency will begin to stream into the global markets and the value will go up. Do you really think it won’t go up to even 1 penny? I purchased 2 million. I think 1 would be enough, but hey, why not!
You don’t have to buy $1 million, you can buy less if you want. Why would you risk it though. However, if you purchase a smaller amount, the benefits will be enormous! We need oil, we need natural gas. The Dinar, will be worth money.
Please watch this item. I would like to get as many people to help as possible. Just remember. You need to be ready, when this happens! Thanks again!
 
sounds good.......but it is probably a scam, I just can't figure out how (Assuming you didn't buy from that site).........oh well, guess that's why i don't trade currencies ^_^
 
This sort of thing comes up all the time with "soft" currencies.

The government usually fires back at the speculators by making it unlawful to bring any significant amount of the "soft" currency into or out of the country, or just creating a "new Dinar" with a declared exchange rate against the old currency and only allowing citizens to change it, etc. On top of all that, economic fundamentals don't necessarily control currency valuation in the simplistic way as described in the note (I particularly liked "the value of their Dinar will go up. It just will. :) ). Not to mention the obvious scam of selling you counterfeit notes.
 
I hate diners, worse than McDonalds.

defaul1.jpg
 
The sales pitch claims that you could have bought Yen & Deutschmarks for dirt cheap after WW2, and cleaned up as both defeated Axis countries recovered. Is this even true? Just the facts, please...
 
I'm always a cynic, but I'm not convinced this is a pure scam at all.

From wikipedia: "Value of the new dinar
Although the value of the new Iraqi dinar <b>appreciated from 4,000 dinars per US dollar, at the time of its introduction, to a high of 980 dinars per US dollar</b>, it has now depreciated to an official exchange rate of 1,469.63 dinars per US dollar at the Central Bank of Iraq. However, there is not yet a set international exchange rate, and so international banks do not yet exchange Iraqi dinars. The exchange rate available on the streets of Iraq is currently around 1500 dinars per US dollar (April 2006)."

____
Note that 1500:1 is roughly the same exchange rate offered on the net.
 
http://www.usatoday.com/money/world/2004-08-03-dinars_x.htm

Investors in new Iraqi dinar spur thriving Web trade
By John Waggoner, USA TODAY
Iraqis are serving dinars — and investors are flocking to the table.

The new Iraqi dinar, introduced in October, is now virtually worthless: It takes 1,460 dinars to equal $1, according to Bloomberg financial news service. (Related: Check the latest exchange rates at USATODAY.com).

But dinar trade is thriving on the Internet.

Internet auctioneer eBay, for example, lists 622 auctions of new Iraqi dinars, in lots from 1,000 to 5 million. Dozens of Web sites, such as www.BuyDinarsHere.com, www.DinarTrade.com and www.InvestInDinar.com, sell dinars to U.S. investors.

The lure: Investors remember that the Kuwaiti dinar plunged to 10 cents after Iraq invaded Kuwait. It's worth $3.39 now.

The Iraqi dinar sold for as much as $3 before the first Gulf War. And Iraq sits on the world's second-largest oil reserves, an enormous asset. "Even if it goes up to one penny per dinar, that's a lot of money," says Mahmoud Shalabi, president of SilverDinar.com.

Currently, a 250,000 dinar note is worth about $171. At a penny per dinar, the same note would be worth $2,500.

Interest has cooled since the U.S. handed power to the Iraqis. "Before the handover of Iraq, business was phenomenal," says Marshall Donnerbauer, president of InvestInDinar.com. "All the soldiers and contractors wanted to be investors before that."

The insurgency hasn't helped business. "It depends on the news," says Katja Morgenstern, president of Dinar Trading Company, which runs www.buydinar.com. "If it's a bad week, business is slow."

Risks for investors are enormous. If Iraq inflates its currency or otherwise devalues it, dinars could get demolished. Further civil strife also could clobber the currency. Speculators who bought dinars early are sitting on big losses. Other problems:

•Pricing. Dinar exchange rates vary widely, and only large institutions can get 1,460 dinars to the dollar. Dinar Trading Company offered 1 million dinars for $1,345 Monday. Dinar Trade offered 1 million dinars for $1,050. "There are lots of different prices around," says Shalabi. "Everyone has his own price."

•Liquidity. Most dealers who sell dinars won't buy them, and U.S. banks won't buy them either. You can, however, sell dinars on eBay. Monday, 1 million dinars were being offered for $840 to $940.

•Fraud. Unlike the worthless Saddam-era dinars, new dinars are difficult to counterfeit. But some investors have ordered dinars from unscrupulous dealers and never received them, Morgenstern says.

Donnerbauer says there's a side benefit to holding millions of dinars. "I'm not a rich guy," he says. "But it's a good way to simulate being rich."
______

Article from Pakistan:

Economy

Gambling on the Dinar

Hungry for suitable investment options, many small investors put their money in the Iraqi dinar, with drastic consequences.


By Shujauddin Qureshi

Anis Mukhtar, a widow, purchased the new Iraqi currency on the advice of a friend in order to earn a quick profit after the dinar's value surged following the American occupation. For her this seemed to be a goldmine investment for earning a quick profit. But it proved to be a high-risk choice.

"With an investment of just thousands of rupees in Iraqi dinars, you can become millionaire and earn a handsome profit within a short time," a friend informed Mukhtar. She was told that people had earned a 30 to 40 per cent profit within weeks by investing in Iraqi currency.

Mukhtar could not resist the temptation as a friend of hers had also earned a hefty profit. She purchased the new Iraqi 'Bremer' currency in high denomination notes from the open market.

The new Iraqi dinar notes, named after Paul Bremer, the US civil administrator, were introduced on October 15 last year, replacing the currency of Saddam era. The currency started gaining in value after the capture of former Iraqi President Saddam Hussein, which created a buying frenzy in currency markets in Pakistan and Arab countries.

According to a market survey, in Pakistan only 10,000 and 25,000 denomination notes of Iraqi currency are in demand. The new notes with all security marks and symbols, bear scenes from the old Mesopotamia, a picture of 'al-Hadbaa minaret' in al-Musil mosque and pictures of the Babylonian King Hamourabi and a 10th century mathematician, in place of the smiling Saddam Hussein.

When the new notes were first introduced, the exchange rate with the Pakistani rupee stood at one dinar to 0.03 rupees, which went as high as 9 paisas in December. This surge is attributed to an artificial demand in Dubai, Bahrain and other Gulf markets as well as in Pakistan and India. According to analysts, financial market players have cashed in on the situation, causing the dinar to tumble. Mukhtar bought the Iraqi dinar at the exchange rate of one dinar to 0.06 rupees. But just a few days after her purchase, the Iraqi currency came down to 4 paisas due to profit - selling by market players. Though Mukhtar suffered a loss of 2 paisas on each dinar, she had no option but to hold on to the currency in the hope of its appreciation.

When she made the deal, she was told that the dinar could touch the 10 paisa mark within a few weeks, giving her an unimaginable profit of 4 paisas per dinar. But all her dreams shattered due to market volatility. Although the rate has improved, slightly, to 4.5 paisa a dinar in recent days, she is still at the losing end.

As are many others. According to Ovais Kalia, chief of Khanani and Kalia, many money-changers, particularly those operating in the Punjab, are persuading people to sell the maximum number of notes to earn their commission. He said the buyers are tempted to speculate in Iraqi dinars due to lack of better investment options. The lure of easy money has snared rich and poor alike. Tempted by the attraction of quick bucks, small investors were trapped in a vicious circle, this time by the money-changers and their brokers, who minted billions of rupees trading in the Iraqi dinar, while small investors were squeezed.

The daily trading volume of Iraqi currency is still enormous as compared to other currencies. However, due to the unorganised nature of the currency market it is very difficult to quantify volumes. "We have documented all records of the currency trade because like every exchange company we have to keep a record," says Kalia, adding that most money-changers maintain no such record.

Some analysts and experts believe that the State Bank should play its role as a regulatory authority and safeguard the interests of the common investor. "We cannot do anything because we have no control over the money market. It is an open market, where anyone can buy or sell any amount of any currency," says Syed Waseemuddin, chief spokesman of SBP.

Large banners at prominent places in Islamabad, Lahore and other major cities of Punjab, enticing people to purchase Iraqi currency, attracted the attention of even small income salaried people, who earlier had never thought of purchasing a currency, they had never even seen.

Research analysts and money market sources says the market is currently flooded with higher liquidity. Money earned from undocumented or parallel economy, real estate and stock market investments as well from remittances from overseas Pakistanis is not finding any proper channel for profitable investment.

The recent decrease in the rate of return on national savings schemes and declining profits on bank deposits has forced investors to look elsewhere. An artificial demand for Iraqi currency was created during November-December and after it reached its peak value, profiteers started selling, catching small investors unaware. "People have no awareness how the currency market operates, so they mainly rely on money-brokers' advice or follow others," says Mohammed Sohail, research head at Investment Capital Securities.

"This is not a financial scam because Iraqi currency is legal tender and is acceptable everywhere in the world," maintains Kalia, adding that people should study the market before buying or selling currency. Many early investors have already earned windfall profits on the Iraqi dinar. However, small investors have lost heavily as the currency tumbled after the initial surge.

Money-changers and investment advisors, however, maintain that the Iraqi dinar is still likely to give good returns in the long term.

http://www.newsline.com.pk/NewsFeb2004/economy2feb2004.htm

____________


<b> After thinking about this for just a couple minutes, I believe that claims the Dinar will soar all the way up to a penny and beyond... are ridiculous. The float is just too enormous, too many longs are out there- all over the world, hoping to win this lottery.
Best case scenario- the Dinar triples or quadruples in dollar value from current levels. Even that is in no way guaranteed.

Also, say the exchange rate in ten years is 500 Dinars to the USD. You <b>didn't</b> <i>really</i> triple your money (purchasing power), as the USD itself is a depreciating unbacked fiat currency.</b>
 
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