Why do domains sometimes go for ridculious amounts?

[nate_king1]

What are the reasons behind buyers looking to purchase domains. Are these people who pay for it, stick in their ways and cannot be changed? Buying
GosphelMusic.com, instead of Gosphel-Music.com.

I need help to understand why people buy domains fo: r so much.

[Apsylum]

Number one answer (in my opinion), because they'll make just as much or more with it.

[Gayble]

They're more likely to pay more for a domain they'd really want to develop, or resell for a better price.

[hysteriaweb]

A product is worth how much someone is willing to pay for it!

[Gayble]

Good point, hysteriaweb, I guess it can also depend on brandability as some people may want to purchase your domain to register a TM with the same name, or they may have the TM and they will want to buy the domain from you (if you have the exact name)

[mystwoman]

less risky and taxable than stock, IMHO