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Domain Names Are a Great Alternative Asset in Financial Uncertainty

August 7, 2011alternative investments, domain names, Domaining, Domainnamewire, s&p, UncategorizedComments Off on Domain Names Are a Great Alternative Asset in Financial Uncertainty

Domain names aren’t denominated in a single currency and are easily transferable around the world.

With S&P’s downgrade of U.S. long term debt, financial markets around the world are trying to make sense of it. It’s not like the U.S. economy and outlook has actually changed since the announcement was made. And few people trust S&P, the same company that rated a number of worthless mortgage securities AAA.

But of course this means turbulent times are ahead for your savings. As an American, I have a lot of my savings in U.S. dollars and about an equal amount in equities. While you may consider this very risk averse, those dollars keep falling in value at the same time equities do.

Which is why I’m happy to also have significant domain name assets. They aren’t denominated in U.S. dollars. Nor Euros, which could very well disappear over the next decade. Unlike some assets (e.g. U.S. real estate) they are easily transferable and salable around the world in any currency.

Domain names aren’t very liquid, but it’s a good feeling to have money tied up in an asset class with international appeal.

© 2011.

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