time to put your money where your mouth is:

http://betoniraq.com/

5/3/2006 11:09:28 PM

Are you fucking kidding me?
This is over 3 years old.

Also, I did this research and these people take such a hefty cut for procuring the currency that even with a positive outlook on Iraq's future, it doesn't make this a worthwhile investment.

5/4/2006 12:28:36 AM

what's their cut?

haha, i'm not about to put $2100 in there like their example, but I might do $50 or something, depending on what kind of amounts to a huge expense ratio. i'd have to check into it a little more.

5/4/2006 12:33:48 AM

I'll have to re-research it later, because I did it 3 years ago, as I said.

It was excessive for an investment, but not for the fact that they hold a virtual monopoly on the currency distributions within the U.S.

I think I emailed them when I was interested.

5/4/2006 12:43:00 AM

At the current rate of 1478 dinar / US $ (5/3/2006)
25,000 dinar would cost you $16.91 (plus fees from the bank)

They'll give it to you for $45.

That's a 166% markup.

5/4/2006 12:46:48 AM

yeah, screw that. I might pay $20, maybe even $25.

5/4/2006 12:50:50 AM

Exactly! When I found out about it I was excited because I thought it was a great idea, but when they're ass-raping you on the exchange it loses its appeal.

5/4/2006 12:52:42 AM

This sounds interesting and worthwhile.

But, what if when Iraq is back on its feet, the currency is abolished and a new one with new notes is put in place? Say for example, 1000 current Dinars = 1 new Dinar.

What happens in that scenario? You don't gain anything, do you? You will take your, say, 25,000 Dinars to a bank, and get 25 new Dinars in exchange, which are worth exactly the same.

5/7/2006 2:09:26 PM

That's only if they still honor the old currency. Sometimes countries will completely abolish the old currency because it is basically worthless.

Under your scenario you haven't lost anything, though.

5/7/2006 3:03:59 PM

i found this on some crazy conservative link a crazy aunt sent me. i didnt know it was that old.

SHOW YOUR CONFIDENCE! SCREW THE RISK ASSOCIATED WITH CURRENCY!

I'd rather invest in gold, personally. Or maybe silver. Or maybe in Floridian swampland futures.

5/7/2006 5:30:34 PM

Personally, I'd be selling gold short right about now if I could be assured I could wait to repurchase when I chose, which I don't know if I can or cannot.

Gold has been as high as $1000 an ounce a few decades ago. Today it is something like $600 an ounce, the long term average being somewhere around $400 an ounce.

Sell gold short if you can, otherwise just sell what you have.

5/7/2006 5:45:05 PM

^ if it was that high a few decades ago, don't you think it will be that high again in the near future?

5/7/2006 11:00:32 PM

fyi: http://tinyurl.com/eu5zn


also, a few months back on CNBCW, a guy form Barclays said that about $70 of the per oz price for gold came from the newly rising middle class in India, and their cultural affinity for holding gold as an asset.

5/7/2006 11:06:29 PM

I suspect the price of gold is going to continue to fluctuate, yes. It tends to oscillate around $400, always returning to about $400 (inflation adjusted). You may be right that gold is going to go up to $1000 again but this is unlikely and very risky; since the price of gold is substantially above the long term average it is likely to rise gradually but collapse suddenly, which it might do while you are waiting for it to peak. I am guaranteed about $200 profit per ounce in the long run, you could end up losing $200 if you aren't willing to wait decades for a recovery.

5/7/2006 11:26:27 PM

i saw a commerical for people who want to buy up gold objects

that's crazy

5/7/2006 11:30:00 PM

there's some pretty good writeups on metals prices on marketwatch.com

5/8/2006 11:51:49 PM