Domain prices and currencies

Weak USD is good for me, since I am from EU
And Gold will "flop" sooner or later, it's not like something completely stable and trustable (can't think of anything that would be ) Gold is now way hyped up in price and it will go down fast some time in the future, then we will have to re-evaluate domains from gold to AUD or EUR?
I think market regulates itself and for example a lot of names sold on Sedo (largest seller I think right?) are reported in EUR, USD will always be the most popular though because it's from USA, the country with the majority of domain buyers and sellers...

ssamriga said:

Weak USD is good for me, since I am from EU
And Gold will "flop" sooner or later, it's not like something completely stable and trustable (can't think of anything that would be ) Gold is now way hyped up in price and it will go down fast some time in the future, then we will have to re-evaluate domains from gold to AUD or EUR?
I think market regulates itself and for example a lot of names sold on Sedo (largest seller I think right?) are reported in EUR, USD will always be the most popular though because it's from USA, the country with the majority of domain buyers and sellers...

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I disagree. But that`s ok, we have different opinions.

Have a look at the last chart of this page, the 10 year Spot Gold History in Euros per ounce:

Euro Gold Price

---------- Post added at 11:44 PM ---------- Previous post was at 11:30 PM ----------

You can print as much money as you like but that money is indeed valuable only because it is backed up by Gold.

And lately India and China are on shopping spree for Gold. Wonder why huh?

Increasing population means also more demand for gold in many ways, from the little amount used for the oral health care to hi-tech to obviously more investors buying something that is really limited supply.

Long term it is really one of the best if not the only one to be a sure good investment. The recent rally has been mainly because the US dollar is going down the drain once again. And I can`t see anything different for the next 10 years, then things may just get worse for the greenback.

There are the usual spruikers yelling goldprices to reach $5,000 but I would not be surprised to see it well above $2,000 in another 3 to 5 years time. If you look the price in EUR, it did not really rise too much: 1 year 25% only and most of it has been just the past month. So while in the short term, it may be pull back a bit, and the USD may do the classic dead-cat bounce, in another 2 or 3 years Gold will be way up, I am betting on this.

Hi, italiandragon...Good to see you back on the boards...


You raise an interesting question. The US dollar has been the world's Reserve Currency in recent decades....Its been the benchmark, which is why Oil, Energy, Minerals etc etc - and, domains - largely trade in USD.

Because of the GFC - and, US Government debt - many now question whether the US can sustain its economic leadership role into the future. Hence the loss of confidence in the USD, and, its sharp decline in value against other currencies over the past year, or so...


For me, in Australia, its meant that domains, priced in USD, are cheaper than they were ('cos the Aussie dollar has risen 35% against the USD)....But, its also meant that if I sell a domain, priced in USD (that I may have bought when the USD was at a much higher value), I lose money....


Pricing in Gold? Too volatile for me.....But currencies are vulnerable these days, too.


Basically, no one can ever predict currency movements with any certainty, anyway.....I guess what currency you buy, or sell, in at any one time is a judgement call, and, you hope you come out ahead in the long run...

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DomainTalker said:

Hi, italiandragon...Good to see you back on the boards...


You raise an interesting question. The US dollar has been the world's Reserve Currency in recent decades....Its been the benchmark, which is why Oil, Energy, Minerals etc etc - and, domains - largely trade in USD.

Because of the GFC - and, US Government debt - many now question whether the US can sustain its economic leadership role into the future. Hence the loss of confidence in the USD, and, its sharp decline in value against other currencies over the past year, or so...


For me, in Australia, its meant that domains, priced in USD, are cheaper than they were ('cos the Aussie dollar has risen 35% against the USD)....But, its also meant that if I sell a domain, priced in USD (that I may have bought when the USD was at a much higher value), I lose money....


Pricing in Gold? Too volatile for me.....But currencies are vulnerable these days, too.


Basically, no one can ever predict currency movements with any certainty, anyway.....I guess what currency you buy, or sell, in at any one time is a judgement call, and, you hope you come out ahead in the long run...

.

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Hi DomainTalker thanks for the WB, as you know it`s a great pleasure for me as well be back.

Yes, gold is volatile but are you sure it`s more volatile then main currencies?

I had a good look at some Forex stuff lately and the industry is booming. More and more brokers, more traders, more everything. The recent meltdown not only did not stop it but as expert traders know, it was a party for who knew what to do as volatile markets offer the best conditions to speculate either up or down and currency trading keeps increasing as despite very big risk are to be taken, it still offers great and better rewards compared to equity markets as its quite difficult to see a main currency go to zero while companies can go burst more frequently.....and this year we had plenty of examples including GM.

all the best to you as always

I have had several buyers from Spain acquire domains of mine at SEDO the last few months. I suspect the weak dollar has helped as essentially my domains, which are priced in dollars, effectively have been priced lower due to the dollar's weakness against the euro.

DomainTalker said:

Because of the GFC - and, US Government debt - many now question whether the US can sustain its economic leadership role into the future. Hence the loss of confidence in the USD, and, its sharp decline in value against other currencies over the past year, or so...

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oh I forgot about that: my opinion is that because their economy is based on consumer spending more than any other economy, and because they still are the number 1 economy in the world, the USD will be kept low enought to fuel their spending till eventually China will buy out part of the US.

they are already doing it quite a bit buying US bonds but there is a still plenty to go to shift the 2 economies and we have seen it this year when at some time no one knew if we had to wait first the US getting out of the mess or first China keep buying everything else including our Commodities.

Then once it was clear that it was China to lead the way out, slowly everyone got out of the mess.

Watch soon how the Euro will go over 1.60 this time over the USD.

And if the recovery keeps going we may see parity with our currency.

Italian you are one of a few who can see this mess for what it is. A destruction of paper currencies. This is going to spread to every currency eventually. The reason is all countries now have fiat money and the meltdown in the U.S. is so huge and we sold our paper to every country. Just look at China, it knows whats going on, but China cannot simply bail on supporting the dollar all at once or it will shoot itself in the foot as they alone could tip the scales and all other economies would slide off the map if China dumped to many U.S. dollars all at one time.

Even the Federal Reserve is using stop gaps to ease the fall of the dollar. They are slowing allowing the dollar to fall. They have no choice but they know if it is done slowly they can play this destruction of the dollar a little longer, that gives the Fed time to steal more wealth from Americans by funneling cash to the elite bankers and those others who are "too big to fail".

If the Fed allowed the truth to be told the markets would crash overnight and gold would be $10,000 and ounce. Go to Kitco.com and click on graphs. Look at the graphs for the last 10 years. You see a the dollar (U.S.) sliding at a 45 degree angle like a stairway going down... down ... down. This dollar depreaciation has been going down for a long time.

Now look at gold for the last 10 years. It looks like a stairway to heaven, just the opposite of the U.S. dollar. Gold is a stairway to heaven and has gone up in price almost four times 9 years ago!

So you do make a good point.

Ideally gold, silver are the best way to sell anything. But until the day arrives that dumb downed peoples see it landing in their faces, (huge inflation) they are tethered to the tit of paper money. A whole generation of people looks to government to solve any problem and they see paper money as real money.

This is changing real fast though and it is only weeks and months away that sentiment will change.

We are being lied to and a recovery is the biggest lie of all. The next downfall is coming and it will make the slide from the subprime mess look like nothing as the carnage from the stupidity that Ben Berneke and freinds packaged and pushed onto to the world brings inflation. Banks in America are going to be shut down completly as in a banking holiday. Then the dollar will be exchanged for a new currency at a rate of 3 old dollars for one new dollar. Government can then default on its debts. All those holding cash, cds etc will become sheep to be sheared as they will loose everything. Don't think for a minture this is impossible as the last meltdown wiped out investors to half of what they had.. all in a few weeks!

Inflation is here now.. copper one of the first in a inflationary cycle has doubled in the last few months. Have you noticed everything from cereal boxes to sugar and newspapers are getting smaller? Sugar was always sold as 5 lbs., now for the same price you get 4 lb.s Prices are staying the same, you just don't get as much. That is a sneaky way to price inflation into the economy.

The masses will not be dumbed down to much longer as all hell is ready to unleash.

Until that day most domainers are not getting it and to them gold is a barbaric metal. The bankers have succeeded over the years in blinding the populace to what money is and now gold only shines for a select few like you and me.

Domainers for the large part will get poorer from inflation and after a while domainers will be like everyone else. Too broke to even buy a ounce of gold as they are all in with paper. When it erodes quickly they will get caught in the situation of purchasing power lost.

Unstable economic times are times that bad decisions take precedence. Domainers will continue to hold domains thinking a turn around is coming and not factor inflation into the domain price.

Soon a discount will even rule when paying in U.S. dollars. The flip of that coin is gold is getting a premium over spot! I recently went into my coin store and they are paying $50. over the spot price for gold! That has never been done in the 30 years I have been active in this market. Asking why the company is being so generous and the reply is we are buying as much as we can get our hands on, the supply is short and we know the price is going to contiune to go up into the future.

If the U.S. dollar dropped 20 % this year then you really need to raise your domain prices.

The final act is coming to a threatre near you.. first though we will experience $112. for the movie ticket price. The time will come when domains will be listed in gold prices. That time is when currencies crash and burn.

History always repeats itself...

when currency is devalued & fluctuates...the price of Gold increases


Cheers
Corey

I agree with your post, in fact i have posted about this before in your LLLL.com thread. As an Australian i was not wanting to buy domains at 60/65 cents AUS to the US dollar, right now at 90/93 cents things look attractive for buying IMO.

But yes it works both ways, if domains do not appreciate from here, and the Aussie dollar continues over parity, then my purchases will look not so good, BUT, i like to hedge out a total Aussie exposure by having at least some money invested elsewhere.

IMO domains, priced in US dollars as they are, are a better bet than being in US dollars. I would not want to be in cash US that is. As for gold, yes it's been a good run, but if you compare gold to the AUS dollar, you will see it's (gold) not a great investment, in fact the AUS dollar was outperforming gold most of the time, the last year or two anyway.

I will say that if I was American, i would definitely be exposed to gold, and almost certainly foreign currencies, and domains of course. It certainly is a wild policy of US currency debasement in order to control the recent financial crisis.

It's been US policy to gradually devalue our currency at a very steady rate ever since the early 70's. People keep forgetting this, and then every time there's a recession they suddenly notice it again and become alarmed. It happens again and again. I'm agreeing with you, basically. Just pointing out the situation isn't as complicated as it appears. If you're not in the US it probably makes more sense to just follow what your own currency is doing, since that's where most of the complexity lies. If you're in the US it's simple, you just invest in anything and avoid holding cash.

yes i am in australia and i try to time renewals around the currency , if low to u.s i wait , if up i renew early , to me i think if we can use this to our advantage all is good , i prefer the way things are

had i purchased gold a few years a go my viewpoint may be different

evirtual1 said:

yes i am in australia and i try to time renewals around the currency , if low to u.s i wait , if up i renew early , to me i think if we can use this to our advantage all is good , i prefer the way things are

had i purchased gold a few years a go my viewpoint may be different

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talking about Gold, in the past 24 hours it just broke the previous max in EUR as well as USD so trend seems to be strong bull for longer.

I buy my domain names at Internet.bs, the good thing is that although my local currency is Euro I can choose to pay them in dollars, Euros, Japanese Yen, British pound,Canadian dollars, or Australian dollars.

I always check the exchange rates to see what is the best currency to use before buying lots of domains. I rarely buy domain names in Euros these days

malcarada said:

I buy my domain names at Internet.bs, the good thing is that although my local currency is Euro I can choose to pay them in dollars, Euros, Japanese Yen, British pound,Canadian dollars, or Australian dollars.

I always check the exchange rates to see what is the best currency to use before buying lots of domains. I rarely buy domain names in Euros these days

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yep make it work for you