Dongcoins.com Reviews is Dong Coins a Scam or Should I Invest

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Retire On The Iraqi Dinar And Vietnamese Dong

I often get calls asking about the Iraqi dinar. Initially, I just dismissed the questions and put-off the requests, informing clients and other investors that we don’t employ or recommend currency-based strategies. At the time, this was the result of only superficial research. However, after a recent question about another foreign currency, the Vietnamese dong, I felt it was time to truly dig into what’s going on and write the definitive article on where these currency strategies fit into both retirement and overall investment portfolios.

In my opinion, they don’t fit anywhere! Let me reiterate that; the Iraqi dinar and the Vietnamese dong do not fit into a retirement portfolio in any way, shape, or form. Both monetary units are often referred to as “scam” currencies for good reason. Countless warnings and blood soaked war stories are prevalent online, but to my surprise investors continue to fall for it, throwing good money at a very bad idea.

A street money exchange (RAMZI HAIDAR/AFP/Getty Images)

As it turns out, the scams success is based on a powerful combination of greed, apparent inside information, and the ability to see, feel, and touch the currency. In fact, the most compelling part of situation is that both the Iraqi and Vietnamese currencies are legitimate and tangible. Investors can not only hold them, but also show their spouse, friends and even fold them up and put them in their wallets. Furthermore, they are part of a regulated industry and available for purchase at a few major US Banks. All factors that seem to make investing in either of them a very credible and enticing opportunity to outsmart Wall Street, best fellow investors, and get rich quick by uncovering secrets the government doesn’t want us to know.

Yet, as you already know, if it sounds too good to be true…investors should run like heck. I reached out to several currency exerts to help me explain the ins and outs of this ridiculous business in an effort to help retirees and other investors avoid falling victim to this and similar currency scams going forward.

Reid Kirchenbauer of InvestAsian.com says, “The dinar and dong, along with many other thinly traded currencies, are hard to get at a fair price in the United States.” One US bank Kirchenbauer called was offering one million Vietnamese dong for $56.90, which works out to 17,574 VND per dollar. However, he found the exchange rate much higher at Vietnam’s Agribank. It will sell 21,420 dong per U.S. dollar (not including ordinary fees). Right off the bat, then, there’s a discrepancy representing a more than a 20% decrease in value.

Kirchenbauer goes on to say, “It’s difficult for most people to receive the actual value that these currencies trade at. If banks in the US choose to trade them, they make the spreads very wide so that they can make a large enough profit to justify the potential holding period.”

Scott Smith, Senior Market Analyst for Cambridge Global Payments highlighted another reality facing investors in these currencies. “The biggest challenge to recouping your initial investment is finding someone to buy those currencies back. It’s like shopping for a house cat, but buying a tiger instead, and then finding out you are allergic to cats. It might be easy to find someone to buy your house cat, but finding a suitable home for a tiger would be much more difficult.”

Realizing that these currencies are illiquid, thinly traded and much easier to buy than sell is just the first step in debunking them as viable investment options. The appeal to most unknowing investors is the expectation that these currencies will be revalued on a dollar-for-dollar basis with the US dollar. As you can imagine, that would make those holding either currency instant millionaires overnight. This is where greed enters the scam and investors compound their losses. They don’t just shell out $50-$60 for a cool million. They’re usually lured into buying tens of millions in foreign currency in hopes of spectacular wealth, only to be left holding money that isn’t worth the paper it’s printed on.

According to Mark Whitmore, founder and portfolio manager of Whitmore Capital, LP – a hedge fund that invests exclusively in currencies – “the likelihood of either currency ever trading on a par value to the US dollar is preposterous.” He says that dinar advocates often note that Kuwait’s currency appreciated hundreds of percent after Iraq left the country following its failed invasion. What Whitmore drives home, though, that it’s an apples to oranges comparison. “The official exchange rate between the Kuwaiti dinar and the US dollar never fluctuated even 10%,” he said. “The unofficial black market exchanges were trading Kuwait dinar at huge discounts to individuals who panicked thinking that Kuwait could be annexed by Iraq and Kuwait’s currency might be abolished.” As it turned out, there was no revaluation and, thus, no basis for the kind of “relief rally” that would-be sellers suggest will eventually happen.

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Whitmore is relentless with facts and figures, noting that in 2003 the Iraqi government replaced its old currency (known as “Swiss” dinars) with a new currency and offered to convert 150 new dinars to one old dinar. The dinar became 99.3% less valuable overnight. He also brought to light a slight problem with buy and sell economics. “There are now over 35 trillion dinars in circulation (about three times as many dinars as there are US dollars). Iraq has increased the amount of dinars in circulation well over a thousand-fold and, ironically, over 80% of these dinars exist outside of Iraq, where they are generally not convertible! The implication is that most dinars are not being used for trade and commerce (the ostensible purpose of any currency), but for speculation by duped investors.”

Whitmore goes on to caution that the Vietnamese dong is no paragon of value either. According to the Asian Development Bank, Vietnam has increased its money supply by approximately 40% between 2020 and 2020. “Again, laws of supply and demand say that dramatically increasing the supply of something will drive down its inherent value. So, the dong does not appear to be a good investment based upon its risk-reward profile either.”

History also suggests buying dinars and dongs is not an effective buy-and-hold strategy either. “With transaction fees and spreads included, one would have lost money if they bought either the dong or dinar 10 years ago. The dong has depreciated heavily against the U.S. dollar since 2005 (around 35%) so you would have lost over half your money in the dong. The dinar has appreciated over the past decade, but still not enough to justify the transaction costs,” explains Kirchenbauer. On top of all that, try finding someone to sell that currency to in order to recapture your USD.

Whitmore suggests, “Neither currency demonstrates the kind of fundamental economic indicators, particularly prudent central bankers limiting money supply that would be the hallmarks of a currency likely to appreciate.”

Personally, I think we’re only in the first or second stage of this losing strategy. There are over 70 currencies in Asia and, once the word gets out about the dinar and dong, I suspect that the Thai baht or Mongolian tughrik, both of which have performed well lately against the US dollar, will be next on the chopping block.

Also propping up this bad strategy are the media sources reaping big advertising dollars from dealers in dinar and other exotic currencies for stories that support the idea that these securities will revalue, and soon.

Another source, who chooses to remain anonymous, painted a vivid picture to keep in mind as you probe the depths of this scam. He said, “I caution people to remember that just because a money broker is regulated, has a good rating by the Better Business Bureau and is not breaking any FTC laws doesn’t mean they are trustworthy. Many of the scam artists out there are smart enough never to break any law, which means they’re in a position to dupe people indefinitely.”

As part of his job, this anonymous source previously provided biased information that encourages people to invest in the dinar. For example, when Iraqi oil production was at its all-time high, he was instructed to write an article arguing that this was great news for dinar. Although he says he voiced concerns about its true impact, he was instructed to present only a rosy side of the story.

His lopsided reporting continued under directives to omit more and more important facts and figures. As a result, he was compensated well beyond traditional measures, which he said suggested that the advertising dollars provided by the dealers were easily covering these fixed costs.

While the sheer terror of realizing you may have lost a boatload of money after buying a foreign currency is bad enough, the source regretfully informed me that, “Some dinar dealers are even more unscrupulous than the advertisers. They sell counterfeit currencies, which will be absolutely worthless if people ever try to redeem them.”

On the bright side of all this, if you already own these currencies, there may be one benefit. It might be worthwhile to talk to a tax advisor about selling the currency back and writing off the loss. While this may not work out for everyone or every situation, it’s worth trying to save a few tax dollars from the ordeal.

Between the steep cost to obtain them, difficulty to recoup your US dollars, and extreme unlikelihood they will ever revalue at a level manipulated media suggest, I think it’s safe to say the dinar and dong don’t belong in your portfolio since they won’t help you retire early or provide your family with great wealth.

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Parent caught up in forex (vietnamese dong) scam. What should I do?

Parent caught up in forex (vietnamese dong) scam. What should I do?

Post by pierremonfrere » Wed Jul 22, 2020 8:15 pm

A couple months ago my mom called and told about an “investment opportunity” that she had already put her money in, and didn’t want me to miss out (or any of my siblings, some of which had already put their money in too). A friend had told her about an imminent revaluation of the Vietnamese dong and she was going to be a multimillionaire, without any downside. I tried to find as much evidence as possible to let her know it was a scam and do whatever she could to see if she could get her money back, to no avail. Fortunately, she only bought in once and didn’t waste all her savings on it. She was also kind enough to gift me a million dongs that I have no idea what to do with.

Fast forward to today and she calls me to let me know that “its just around the corner now” just a few more hoops to jump through. This was the email I got too:

OK GUYS,
WE RECEIVED THE WORD LAST NIGHT THAT THE ONLY WAY TO EXCHANGE THE DINAR / DONG IS BY PRIVATE EXCHANGE. I AM SENDING A LINK FOR YOU TO FILL OUT AND RETURN IF YOU WOULD LIKE TO PARTICIPATE. YOU WILL THEN BE SENT AN EMAIL WITH INSTRUCTIONS AND PAPERWORK THAT YOU MUST FILL OUT, SIGN IN BLUE INK, THEN PUT A BLUE THUMB PRINT NEXT TO YOUR SIGNATURE. (JUST A CHEAP BLUE INK PAD WORKS FINE), FOLLOW THE EMAIL TO THE “T”. FILL OUT THE PAPERWORK AND SEND IT IN AS IT INSTRUCTS YOU. THERE ARE 3 PHASES OF THE EXCHANGE. YOU WOULD BE PUT ON A LIST FOR THE 2ND PHASE. UNLESS THEY HAVE ROOM IN THE FIRST PHASE. IF THEY DO YOU WILL BE CONTACTED.

ANY QUESTIONS CALL US.

GUYS THIS IS SERIOUS. IF YOU DON’T GET INTO A PRIVATE EXCHANGE YOU JUST AS WELL SHRED WHAT WE GAVE YOU. THE RATE IS NOT AS HIGH AS WE THOUGHT BUT IT IS BETTER THAN NOTHING.

YOUR ACTION NEEDS TO BE DONE ASAP.

LINK: [Scam Link removed by admin LadyGeek]

BY THE WAY IT IS HERE. SMELLING SALTS THAT IS.

Nevermind that it is annoyingly all in caps. After filling out paperwork, you have to drive to a neighboring state to pick up your windfall. Whenever I ask her for details about the people she is getting her information from, she doesn’t have any answers. She can only assure me that the government knows all about it (which apparently makes it legit) and for some reason picked one guy to be the point man of making everyone else rich. They have told her that they are NOT getting as much as they thought they would out of the revaluation, but that her $2500 investment will only be worth about $20,000,000

Has anyone else run into this situation with their family members? How did you deal with it?

The Next Great Currency Scam

Over the past year, I’ve written quite a bit about the Iraqi dinar, the foreign currency that many self-appointed “gurus” try to convince buyers will suddenly “revalue” from being one of the most worthless currencies in the world to one of the most valuable. Dinar brokers sells bundles of the dinar that you can only buy in cash directly from Iraq, then you sit on it and wait for the Iraqi government (or President Obama, or the IMF, or whatever) to pull the trigger on boosting it hundreds of thousands of percent in value.

It doesn’t take a degree in finance to tell you that this is false. Many actual financial experts have debunked the myth of the Iraqi dinar “RV,” and while gurus have been promising for years that the magical day where millions of dinars turn into millions of dollars was right around the corner, it’s not, it never has been and it never will be. Iraq’s economy is nowhere near being able to support an electronically traded currency with serious value, and it might be a decade or more before that happens.

Fortunately, the dinar scam looks like it’s finally abating. There are numerous, well-written pieces by people at Forbes, Business Insider and others presenting well-researched and logical information about why the dinar is about as worthwhile an investment as magic beans.

Not only that, but law enforcement is starting to crack down on dinar brokers who exploit a loophole in currency law to sell cash as a collectable. Of the four dinar websites I mentioned in the piece, one, Sterling Currency Group has been raided by the FBI and shut down, while Bet on Iraq is now a dead link. Additionally, one of the most vocal dinar gurus, Anthony “TNT Tony” Renfrow, recently pled guilty to wire fraud in relation to a different prosperity scam — one that used many of the same techniques as the dinar.

But just as scams like the “Omega Trust” and NESARA begat the dinar scam, it’s only a matter of time before the resources put into selling and pimping this worthless currency is put toward selling and pimping some other worthless currency. Which one will it be? Here a few different national currencies to be on the lookout for as the next great money scam:

Vietnamese dong
If there’s one other currency that dinar gurus love to sell along with the dinar, it’s the dong. Vietnam has a complex history when it comes to currency, one intertwined with the fractured history of the country. Both North and South Vietnam issued their own currency, both called the dong, in the 1950s. When Vietnam was united by the communist insurgency in 1975, the dong was also unified. It went through several redenominations, lopping zeroes off the inflated exchange rate with old currency exchanged for new. For decades, Vietnam struggled with inflation, counterfeiting, and the dong’s lack of value against other currencies.

Finally, in 2003, Vietnam introduced new notes that were harder to counterfeit, and it developed a new banking system designed to handle large transactions.

Even with all of these reforms, the dong is one of the most, if not the most, worthless currencies in the world. It currently trades for around 21800 to one dollar, and only in cash, not electronically. Like the dinar, you can buy them in cash from brokers working under the “money service business” loophole. Like the dinar, the dong is massively overprinted. And like the dinar, they take a massive cut, usually charging between 20 to 25% more than the value of what you’re getting. And finally, like the dinar, the dong has lost value in the past year, as it traded at 21175 to one dollar one year ago. Dongs are becoming less valuable, not more.

But that doesn’t stop “gurus” from hyping them as the next great currency to rise when the “global currency reset” happens. They seize on minor details, like some US banks carrying dong to exchange for dollars. But there’s a simple reason for this — more and more Americans are traveling to southeast Asia, including Vietnam. While dollars are accepted, shopkeepers will usually round their prices up when dealing with dollars, making items more expensive than using the local currency. It’s not part of any massive currency reset, it’s just tourism.

The dong is a viable currency to buy if you’re going to Vietnam. Other than that, it’s useless as an investment. The Vietnamese government might attempt to redenominate it again, but as we’ve discussed with the dinar, redenomination is not the same as revaluing — one is a real and legitimate technique to bring down inflation, the other is pie in the sky nonsense.

Indonesian rupiah
The rupiah is the currency of Indonesia, and while its pimping and selling are not quite at the level of the dinar or dong, don’t be shocked if it gets there. Way back in 1949, when Indonesia first gained independence, the rupiah traded for about 3.8 to one dollar. But hyperinflation hit almost immediately, and soon price controls had to be introduced. In the 70s, the rate was about 415 to the dollar, dropping even further going into the 80s. Despite Indonesia having a strong economy, the rupiah continued to drop in value, and crashed completely in August 1997.

In 2020, there was something of a gain, as money flowed into the country before its presidential election. But post-election, the rupiah crashed again, and hit a low of 13,000 to the dollar. Compare this to their value a year ago, which was 11710, and you have another currency that would have lost you much of your investment.

The country had vowed to redenominate the rupiah, but put that on hold while its economy stabilizes. In the meantime, unless you’re an experienced foreign currency trader (and chances are if you’re reading this, you’re not), stay away from the rupiah.

Zimbabwean dollar
Everyone likes a big number, and the bigger, the better. So it made news when Zimbabwae, hit with crippling inflation, introduced a 100 trillion dollar note, it made international headlines. It was also the beginning of the end for the currency, as in 2009, Zimbabwe announced they’d be phasing out their currency altogether, and relying on foreign currencies like the US dollar. The zim will become completely demonetized by the end of 2020, though there are unwelcome rumors that the country is experimenting with printing new (most likely much lower) denominations.

At this point, Zimbabwean dollars are worthwhile only as collector’s items. They literally are about to have no value as actual money, and the country is attempting to get the last notes out of circulation. This admittedly makes those 100 bazillion dollar notes valuable, and the highest ones go for around 20-25 bucks on eBay. But even then, the market is flooded with them. You’re not going to get rich off any money coming out of Zimbabwae. Nobody ever has.

Something else
The Chinese yuan, South Korean won, and various other Asian and Middle Eastern currencies are also mentioned as being the “next currency” to be revalued, despite nothing being the previous one. Chances are, it won’t happen, for both simple and complex reasons.

As always, be skeptical of anyone touting the benefits of buying large amounts of a cheap currency with lofty promises for the future. They’re almost certainly not true.

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