NamesCon2020

Liquidity

Located in General Domain Discussion started by JH1961, Oct 23, 2019.

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5
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338

  1. JH1961

    JH1961 Established Member

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    I’d like to get others opinions on if there is actually any true liquidity in the domain market.

    When we think of assets having liquidity we think of being able to liquidate them in short order to raise cash.

    Stocks, precious metals etc. are some that truly offer the ability to “cash out” for a true value or close to it at least.

    But it seems that unless a domain name is 3 letters or better, or low digits there really isn’t any true liquidity. Meaning selling at fire sale prices doesn’t count. If you sell an asset at 10 cents on the dollar anything can be liquid but it’s not truly a liquid asset.

    Also is it limited to “insiders” who have access to potential buyers for quality one word or even two word domains at a true wholesale/retail value.

    What are your thoughts on this important aspect of our industry?
     
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  2. gotasale

    gotasale Established Member ★★★★★★★★★★

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    Domains are more like realestates

    Every domain is unique and value differs dramatically

    Gold or stocks , they are all like each other's . 100 grams of gold is a 100 gram of gold
     
  3. bmugford

    bmugford www.DataCube.com PRO ICA Member VIP ★★★★★★★★★★

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    The domain market is inefficient and has subjective values unlike highly liquid assets such as stocks, bonds, gold, etc.

    But, that is where the investment opportunity is though. High upside / low liquidity.

    The fact that the market is inefficient means you can make huge returns even on smaller investments.

    Take some domain profits and invest in liquid assets then you get the best of both worlds.

    Brad
     
    Last edited: Oct 23, 2019
  4. URLtrader

    URLtrader Upgraded Member Gold Account ★★★★★★★★★★

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    One can start investing in domains for about $10 whereas Realestate and stocks need a lot more to start.

    Since entry is easy, exiting with meaningful profit is tough.
     
  5. Drongy

    Drongy Upgraded Member Gold Account

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    I guess that is a blessing and a curse.
     
  6. equity78

    equity78 Top Member TLDInvestors.com TheDomains Staff PRO Gold Account VIP ★★★★★★★★★★

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    The best answer in my opinion.
     

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