Page 1 of 1
When Buying Iraqi Dinars, Insist On Uncirculated Banknotesby dinar insider
Recently, there’s been some confusion among Iraqi Dinar (IQD) investors about whether it’s best to own only new, uncirculated Iraqi Dinar banknotes, or whether it’s acceptable to also hold circulated, good-condition Dinar notes. For a variety of reasons, most currency investors prefer to own uncirculated Dinars.
The differences between circulated & uncirculated Iraqi Dinar banknotes
Before discussing the reasons why uncirculated notes are preferred, it’s important to understand the meaning of the term “uncirculated.”Monetary authorities use the strictest sense of the word uncirculated to mean that a given banknote is in mint condition and has not been handled or used in commerce. Yet, some Dinar dealers use a much looser interpretation.
Definitions of “circulated” and “uncirculated”
The most common definition among Dinar dealers and investors is that uncirculated banknotes are in new, unused condition. They’re crisp, and they have clean, sharp corners and knife-like edges. They have no folds or creases, and no pen marks.
In contrast, circulated Iraqi Dinar banknotes have folds and creases, soft edges, rounded corners, and perhaps bear some handwritten pen or pencil notations. Further, in Iraq as in some other countries, banking institutions and accountants often mark or stamp Dinar banknotes during the accounting process. Later, other banks may refuseworn, stamped or marked notes.
Of course, uncirculated Dinar notes come directly from Iraqi banks, while circulated Dinars come from commerce at the street level. Many military service people, as well as petroleum workers, and construction employees and contractors,carry or send Dinars to their home countries, where they are held as investments.
These notes may have been lightly circulated, or almost-uncirculated, or they may have been used heavily in commerce. Some Dinars, even if unused, may have been damaged in shipping or storage and are therefore being sold as circulated.
It’s also important to be aware that many dealers would only judge Dinar banknotes to be “uncirculated” if the notes’ serial numbers are in sequential order. So, if you’ve purchased Dinars in fewer, larger batches they’re likely to be numbered insequential order.
On the other hand, if you bought multiple small lots of Dinars containing different bundles of notes, then you’ll probably have fewer notes in sequential order, and more random serial numbers. Many dealers would consider such notes to be “circulated” although they may be new and crisp in appearance. This may affect the sale price you receive.
Uncirculated Dinar banknotes sell for a premium
Uncirculated Dinars tend to sell for a slightly higher price over the same denominations of circulated notes. Perhaps this is due to human nature in preferring “new” good instead of “used.” Others believe that uncirculated Dinars will be easier to sell or command a higher price in the future.
Yet, banks consider cash as cash so long as it’s not heavilydamaged. Therefore, in the future when the IQD is traded across a wider platform, selling Dinars to banks will be easy.
In the meantime, uncirculated Dinars will probably continue to draw a small, extra price premium for the typical transactions among dealers, buyers and sellers. As an investment, buyers can assume that uncirculated notes will be easiest to sell anywhere going forward.
In conclusion, when you invest in IQD currency it’s best to insist on receiving all-new, uncirculated Iraqi Dinars.
by Dinar Insider
- Posts : 37260
Join date : 2011-08-09
Page 1 of 1
Permissions in this forum:You cannot reply to topics in this forum