People are paying big money for domains again. In 2006, the most expensive domain name was diamonds.com, which sold for 7.5 million US dollars.
But, like speculative art dealings, most domains are sold to fellow domain-purveyors, hoping to make a significant return on investment down the line.
Others are raking in so much moolah from Google Ads, they can afford to make big investments in domains for their MFA (made-for-adsense) sites.
According to dailydomainer:
Of the 100 highest-priced domains sold in 2006, only 18 have been developed, 8 redirect to a developed site, 5 are affiliate sites, and 6 are currently under development. 9 domains don't work at all and a massive 54 show PPC (pay per click) ads.
Interesting that dot coms are still the best sellers. Dot eu? Eeeweeegh!