Don't Listen To The Hype
Matthew has been hearing a lot of hype about the Iraqi dinar and investing in it. Is this something he should consider?
QUESTION: Matthew in Nashville has been hearing a lot of hype about the Iraqi dinar and investing in it. Is this something he should consider? Dave says the hype is bogus.
ANSWER: Most of the hype on the Iraqi dinar is on the internet. Absolutely you do not put a dime in that under any circumstances. The hype is all internet B.S. It’s 100% bogus. I have on my shelf in my personal office—along with some wonderful military coins from some heroes who have shaken my hand and left something in my hand when they did—a couple of green berets and a couple of shells from an AK, that kind of stuff. Right beside that is some money that has Saddam Hussein’s face on it. You know what that money’s worth? Zero. It’s a souvenir. That’s what happens when a government changes. To the extent a government is insecure in holding its ground and continuing to remain in power, that currency becomes very volatile and a dumb idea.
What we have with Iraq is a war-torn country with a brand-new government that we all hope and pray makes it. But as an investor, I’m not putting a penny in that. It is based on the quality and the stability of the Iraqi government. Politically, philosophically and theologically, we hope it stays in place. We want good things for those people since we just spent lives and billions of dollars giving them their country back. That doesn’t mean that’s a stable environment versus if you wanted to buy currency in Germany or you wanted to buy the euro. I’m not investing in currency even then because it’s a very volatile type of investment and high-risk in general. But I would say the euro is a bit more stable than the dinar. For the very reasons we can make that statement, you do not put a penny in the Iraqi dinar.