In this interview I talk about gold and Iraqi dinar with Jim Rogers whose investing track record has won world wide notoriety. I have noticed that when investments are promoted we are not necessarily getting sound information because the media platforms themselves have a vested interest. Jim on the other hand has nothing to gain so it was an amazing opportunity to get some fresh insight. For those of you who are disciplined about setting aside a little for investments each month, this blog is for you. Here’s a little spoiler: you can’t go wrong with silver bullion coins.
Jim Rogers has always been a fan of commodities and although he’s obviously not one of the die hard gold bugs out there, gold is still something that he looks upon favorably. I didn’t want to draw him into a rabbit whole concerning gold cycles and predictions because I knew he was accustomed to that. Instead I asked him about numismatic gold as opposed to buying regular bullion coins. I wasn’t surprised to hear that he isn’t a fan of numismatic gold. He feels safe buying bullion coins because he doesn’t believe the government is going to confiscate gold bullion like it has twice in the past.
If you don’t know already, the strategy of every gold seller is to proliferate the fear of gold confiscation (numismatics cannot be confiscated by law) so people can buy numismatic gold coins at really high prices. When their customers try to sell them back they find out that they are losing big. For example, if you buy an MS-62 $20 gold liberty coin for $1850 and the price of gold goes down substantially, the numismatic value of $400 could be LOST. Not only that, the fact that the price of spot gold went down in value makes you lose even more. And here’s the sad part; if the price stays the same and you try to sell it, you may find that the numismatic value is really just $200. Let’s just say you bought that same numismatic coin for $1850 and the price of spot gold goes up $330. If you tried to sell the gold at this moment you would break even. So I agree with Jim Rogers in regards to numismatic gold. In fact, I would focus on silver bullion coins like Canadian Maples instead because it’s cheaper and even the coin dealers don’t believe silver bullion will be confiscated. I also would include some silver numismatic coins in my portfolio because they stand a good chance of giving me a good return when silver skyrockets again.
Investing in Iraqi dinar
What really shocked me is that Jim doesn’t recommend buying Iraqi dinar. His school of thought is that you must have an intimate knowledge about anything you invest in. And Americans probably would have trouble finding Iraq on a map much less know what causes dinar currency fluctuations. But there is talk that the Iraqi dinar may revalue like the Kuwaiti dinar did in 1991. Looking at this fact and the historical value of the Iraqi dinar, one can predict that a $300 investment in Iraqi dinar could turn you into a millionaire overnight. My thinking is that Americans tend to ride high on the hog, constantly living outside of our means. Why not forego the beer and cigarettes for a week and buy some Iraqi dinar instead? If nothing happens to the value over the course of a decade, just sell it back.
I think one of the reasons why purchasing Iraqi dinar is frowned upon is that there have been so many prognosticators who have publicly predicted revalue dates and were wrong. Those people remain unscathed because they can erase their videos and crawl back into anonymity but the stigma they’ve created remains. A few years ago there was a guy who was doing his rounds on religious talk shows and predicting the exact date of the dinar revaluation. Well, he was wrong and then he did more rounds on talk shows with a second date. He was wrong that time too. I did some research on him and found out that he was listed as a sexual offender in Pennsylvania. No one did a background check on him because they blindly trusted him and wanted to believe in what he was saying.
So here’s some more information to chew on in regards to the revaluation of the Iraqi dinar. There is a number of people walking in the stratosphere of financial circles who are giving hints about the BIG RESET. This is an event that Christine Lagarde of the IMF openly talked about 2 years ago but was not well publicized. She and the big international bankers know that the only way to fix the international deficit is to unpeg the world currencies and revalue them based on the natural resources that their countries contain (Iraq has a lot of oil). On top of this there will be a debt jubilee where the debts of all countries will be forgiven. But beware that before all this happens, things are going to be getting tough as our economies sputter out of control.
According to Willem Middlekoop, co-founder of Commodity Discovery Fund, Americans should expect a 10% loss of bank savings while pensioners are looking at a 35% loss. He says that since the US Federal Reserve and the Chinese government formed a merger in January 2014, the global reset of currencies will be facilitated.