Fine wines and Internet domain names go together well

Fine wine and Internet domain names seem to be worlds apart – but they are not so distant anymore when it comes to valuation: The price of a sought-after bottle of Bordeaux and the value of a catchy .COM domain follow very similar paths, as a comparison of the Liv-ex Fine Wine 100 index and my Internet Domain Name Index (IDNX) reveals.

Overall, prices for both goods depend on the world economy and on consumers’ disposable income. When connaisseurs have money to spend on the fine sides of life, the advertising industry and (subsequently) domain prices flourish as well. The correlation of monthly changes in the the Liv-ex 100 and IDNX is a high 0.36, while the correlation in levels is 0.82.

Maybe one should think of wine as a great natural diversifier for domainers: When your domain net worth decreases, so does the cost of a comforting glass of nice French red.

Cheers to that & Happy 2012!

Wines and domains: a good combination?

Data: http://idnx.com, http://liv-ex.com

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