The IDNX, a price index for the domain market created by MIT Postdoctoral Fellow Thies Lindenthal, has hit the 200 mark. As explained in the tweet below, this essentially means that “A diversified portfolio of domains bought in 2006 should be worth twice as much today.”
#IDNX reaches 200 mark: A diversified portfolio of domains bought in 2006 should be worth twice as much today.
— IDNX (@idnxcom) September 12, 2014
Obviously for some types of domain names, the values
have gone up much more than double. For instance, three letter .com and short numeric domain names have increased in value far more than double the amount the IDNX indicates. I am sure there are other examples of outperformance that others could find. There are also plenty of example of underperformance as well.
Although this number seems pretty strong, you can see that the NASDAQ 100 has outperformed the IDNX over the same time period. As of August 31, 2014, the NASDAQ 100 is at 239.4 compared to the IDNX 200.9 trading point. As you can see on the chart on the IDNX.com homepage, the NASDAQ 100 began outperforming the IDNX in January of 2013.
I started writing a comment to respond to this posting, but it became so long I thought it would be better to make a separate posting out of it, so it is now at https://www.domaininvesting.com/thought-idnx-domain-price-index/ (Thoughts On The IDNX Domain Price Index).