In my opinion, the #1 selling point new gTLDs in general have is the fact that if you make the right choices, the return can be far greater than with an investment grade dot com. However, if you want the higher return, you also have to accept the fact that you’re also risking considerably more than by buying an investment grade dot com.
So does this mean that investment grade dot coms are safe investments?
Nope, it’s all relative.
Compared to new gTLDs, they are indeed considerably safer, so that’s an important advantage. An important disadvantage, however, is that the potential upside is considerably lower.
You have to understand that even the best dot coms are still risk assets. I’ve explained what risk assets are on more than one occasion on DomainingTips and as domainers, it’s a concept you can’t afford not to understand.
The bottom line is this: the higher you want your returns to be, the riskier the investment in question will have to be.
In other words, if you want close to 100% safety, put all of your money in a good bank backed by a strong government and a central bank that’s always ready to act. However, you have to accept the fact that the returns will be dismal.
Again, it’s all relative.
Domains, through their appreciation potential, can generate very high returns but all types of domains are risk assets.
All of them, no exceptions.
Never forget that.
What you do as of this point is entirely up to you.
As mentioned previously, put your money in a solid bank if you want close to 100% safety.
If you want extremely high potential returns and are willing to accept an extremely high risk factor, certain new gTLDs can represent interesting choices.
Investment grade dot coms are somewhere in between.
Based on your risk tolerance, it’s your responsibility to figure out what the best approach for your specific situation is.