Nowadays, it’s very hard to identify decent investment opportunities.

Stocks are (in my opinion) overvalued at this point.

Government Bonds? Well for the safe choices, the return is ridiculously low and as for the other ones… no thanks!

Gold has had a great run but I wouldn’t feel comfortable buying gold now with the intention of holding for 5-10 years. I *think* we will see new highs but again, I’d say gold is a short term opportunity at this point rather than a long-term “buy and hold” one.

On the other hand, I’d feel very comfortable buying a top dollar domain now (a one word category killer, for example) with the intention of holding for 5-10 years.

Here’s why:

1) Domains are the foundation of the Internet, they won’t go away anytime soon

2) The industry is very young, not even 20 years

3) The percentage of people using the Internet in the US is only 77.86% and when it comes to other countries, it’s considerably lower (38.3% in China and 49% in Russia, for example) – we still have a long way to go

4) The average Joe doesn’t perceive domains as something worth investing in for diversification purposes yet – that, in my opinion, will change

… and so on.

The bottom line is this: there’s plenty of room to grow and unlike most investments out there, the risk vs. reward ratio actually makes sense