Short Domains

Ever heard about .com Boom crash in the millennium, or decline in house prices in UK in recent months?
If a price of an item is inflated definitely there will be a declining trend afterwards. If the market is bullish, Savoy investors will support it irrespective of the real value of the item.
So what makes it’s [...]

Ever heard about .com Boom crash in the millennium, or decline in house prices in UK in recent months?
If a price of an item is inflated definitely there will be a declining trend afterwards. If the market is bullish, Savoy investors will support it irrespective of the real value of the item.
So what makes it’s a crash. When suddenly people realize there are no actual gains on investing and when everyone tries to sell the stock and make cash instead, the supply will increase, so do the prices do decrease as there will be more supply than a demand. At this stage most of the small time investors will specially try to get out of the market by selling short as of the fear due to declining prices.
Situation is same with three letter .com’s though one might put it as a temporary issue as summer always been a bad time to sell. In end of June this year minimum wholesale price for a LLL.com peaked at $7650 but in next two months it dropped to $5400. And in my opinion it will fall further to the level how it was about 2 years back in coming months which is around $2500, as I according to me the market was based on speculation and on the bullish trend afterwards giving the LLL.coms a inflated price tag.   Three years back the minimum wholesale prices of LLL.com was around $1500 mark, which was more than 500% increase in last three years.  There is no reason why only a specific market segment of domain industry gaining a tremendous growth whilst other areas in domaining are not gaining the same type of growth. It was the same case observed with four letter .com’s where the minimum wholesale prices went near $50 mark soon after its buyout in early this year, but now some four letter domains find it difficult to gain $20 in the reseller market. Same case was observed with 5 digit domains which minimum prices reached double the registration fee soon after the buyout but in few months some 5 digit .com domains were available freely to register.
One might think that as the prices were going down this might be the best time to grab some bargains. But I do predict the short domain market to go further down.
So unless you are a very experienced domainer I do not recommend buying short domains such as three letter .com, four letter .com, 3 character .com’s
It’s just a matter of thought. Decision is yours. Anyway there are loads of investment opportunities in the domiain industry. Subscribe to RSS feed to keep up to date with the latest opportunities.