Revisiting the Iraqi Dinar Issue Again…
Last night I was working at our church, helping them get ready for this weekend’s opening of our new 3.000-seat cathedral. A lady came up to me and told me that there are people buying up the dinar in their group like crazy. She knew I worked in the currency market and so she wanted my opinion before jumping in and doing the same as they did.
I told her that it’s amazing how people that have never even bought a euro or yen before suddenly buy up something they know nothing about nor have any experience in.
I told her that it’s amazing how many people buy up this currency on the “pipe dream” that it’s going to revalue and make them all millionaires.
I told her, there are people making money in the dinar though…it’s the one that sells it to you. They get a guaranteed mark-up which is the price they’ve chosen to sell it to you at.
Now if the dinar were going to make this huge run higher…why are they selling people something that would make them that much more rich if they’d simply hold onto it themselves? Instead, they don’t believe the dream they are selling you. That’s why they are taking their money now.
If I owned any asset that I felt could couple or more in the next 12-18 months…I’m not selling it to anyone.
Also, think about it…there’s no major market made for this currency anywhere. So there are no big institutions buying it up that could afford to buy up billions of dollars in dinar and become trillionaires if this crazy dream were true. But of course the “smart money” knows better. It’s all of the moms and pops of the world that are gullible enough to buy it…not large institutions. They won’t hold it or make a market in it.
But don’t just take my word for it. Check out what Forbes had to say about the dinar in January. You can find the article here.