Moniker’s T.R.A.F.F.I.C. West 2008 Silent Auction ended yesterday. 268 domains were sold for a total of $480,000. For comparison only, the TRAFFIC silent auction in October 2007 netted more than $2 million (437 domains were sold).

I think some domains went for low prices this time, including StorageFacility.com ($18,700), SierraMadre.com ($13,024), CaribbeanBeaches.com ($5,890), Bangs.com ($4,303), OilFund.com ($2,950), DubaiPenthouses.com ($2,200) and Weathershield.com ($1,428) amongst others.

Why is that? Sahar says it might be due to an oversupply of domain auctions that makes it harder for buyers to spot good domains. I agree with him on this. This effect can be observed on eBay and other auction venues every day. Buyers will place higher bids if it is easier for them to concentrate on fewer domains. (That is what makes BIDO’s domain auction approach interesting.)

I think it also has to do with the slowdown in the economy. People invest less money in times of higher financial insecurity. So, it is possible that the recession has started to have a negative influence on the domain market, too. Domains have proven to be a relatively safe investment so far, which is why I think the recession won’t affect the domain owners in a big way. Still, it might cause a short-term slowdown in the market. This could be a great possibility for investors, by the way. Especially if you’re based in Europe. The USD/EUR exchange rate is at 0.6585 today, so a $1,000 domain name costs you only €660. If the recession causes asking prices for some domains to fall you will be able to find some very good bargains.

The complete list with the results for yesterday’s auction can be found on TheDomains.com.