Domains are an investment, gold is not.
Ok, then what is gold? Some people say gold is money, I disagree. Gold *was* money, now it’s I’d say a store of value end there’s nothing wrong with that.
The main difference between gold and domains is that gold isn’t an income producing asset.
You can rent a domain, you can monetize a domain and so on.
You can’t do that with gold, it’s simply a store of value.
I’m not saying this because I have something against gold, I don’t. But on DomainingTips.com, I always stress that it’s important to make rational as opposed to emotional decisions.
If you treat gold as an investment, you’re making a mistake in my opinion.
I’m not giving financial advice, I’m not saying you should or shouldn’t buy gold. I’m simply saying that you should make an informed decision as opposed to treating gold as something it’s not.
April 17th, 2013 at 2:22 pm
But in real life … speculation in regards to gold trading, buying and selling gold is okay, … but in regards to domains, it is wrong.
April 17th, 2013 at 2:42 pm
Gold is a commodity that has real world uses and worth. Palladium, platinum and silver or even pork bellies are no different.
Gold is a liquid asset that has a market value, regardless of the bull spouted on various domain forums, domains do not have the consistent liquidity of gold.
As far as what is an investment and what is not, gold is an investment if you think the price will increase and the commodity will still be used at the time you intend to sell, which makes it no difference to domains. An investment in either gold or domains does not guarantee a return.
In 200 years time will there be a market for domains, I am betting gold is still being traded.
April 17th, 2013 at 4:45 pm
GOLD is MONEY.
5000 years of hisotry says so
Just because the modern age thinks its a barbaric relic doesn’t make it so.
April 17th, 2013 at 7:50 pm
Look:::there has never been a successful (did not devalue) fiat
(paper) currency in history!
A fascinating study is the history of money. You should do it.
Once, they used sea shells as currency ….sounds stupid?
Well, now we accept the way ink is arranged on paper as higher or lower value. So that’s not totally stupid???
In 1963, I bought a Chevy rag top new, 327 4 speed for $3,300
An island I bought in 1978 for 73,000 is now 2,000,000 +
Ok – don’t buy gold…….but I do!
April 17th, 2013 at 8:10 pm
You were right, today apple fell below 400, and closed at 402. 🙂
what do you think next?
April 18th, 2013 at 12:35 am
@Jay: that’s because most people don’t understand the concept of investing in domains yet, that will ultimately change.
@Anthony: yes, gold has uses but in my opinion, the current price is too high to be justified by those uses.
@Matt: I understand that gold has certain characteristics which makes it suitable to act as money but like you said, it’s not money in the modern age. In some cases sure, some people might be willing to sell you goods directly in exchange for gold but in most cases, you’ll have to sell your gold for fiat currency in order to ultimately buy what you want.
@craig: I agree that all currencies failed, can’t argue with that. I don’t however agree that in 2013 and beyond, gold is the best hedge against inflation, that’s the main point I’m trying to get across.
@Jin: the truth is, nobody knows for sure. Therefore, I’ll go back to what I said last time, don’t try to catch a falling knife. In my opinion, we will definitely see new lows but it’s just that, an opinion and you know what they say about opinions 🙂