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It's been a little over a year since Colorado began allowing stores to sell marijuana for recreational use and the market continues to grow rapidly. But there are clouds (ahem) on the horizon.
Nicholas Colas and his team at Convergex, a global brokerage company based in New York, surveyed a number of marijuana stores in Colorado last week to get a better picture of the state of the nascent market.
What they found was that prices are declining faster than some had expected, while the number of people visiting the stores has increased.
Here's more from the note:
Since last June, the average price of an 1/8th ounce of recreational cannabis has dropped from $50-$70 to $30-$45 currently; an ounce now sells for between $250 and $300 on average compared to $300-$400 last year. More competition and expansion of grow facilities contributed to this price decline, but it is also a natural result for any maturing industry as dispensaries try to find the market's equilibrium price.
Even with the declining prices, sales are still exceeding those of last year for recreational marijuana.
Public support for the legalization of marijuana has ballooned recently, with Colorado leading the way as a test case for what drug legalization could look like. These are some of the first statistics to show how the market there is developing.
Original Submission
(Score: 0) by Anonymous Coward on Thursday June 25 2015, @02:28AM
Last year, when I was still smoking, here in Sherbrooke, Quebec I was buying at a price between 100 and 120$/oz.
(Score: 2) by Runaway1956 on Thursday June 25 2015, @02:31AM
Holy crap - you could have been buying gold instead, and depositing it in a safe deposit box at your local bank!
(Score: 0) by Anonymous Coward on Thursday June 25 2015, @02:39AM
Your off by a factor of 10. However, cost were part of the reasons why I stopped...
(Score: 2) by Runaway1956 on Thursday June 25 2015, @02:15PM
http://coinapps.com/gold/gram/calculator/ [coinapps.com]
Current price for gold is $37.735 USD per gram. I learned when I was in the Navy that the rest of the world mostly deals in grams. When we hit Bahrain, they had the cheapest gold in the world at that time, and a lot of guys went out to buy little wafers of gold. Those guys who wanted to get presents for the women in their lives mostly bought little 1 gram wafers, those who were purchasing as an investment bought larger wafers, or even small ingots. One of the drawing points in Bahrain's gold markets was, if you bought the gold, they would work it into whatever jewelry you wanted, free of charge. That is, the jewelry cost nothing more than the weight of the gold. Don't ask ME how they made a profit with that, unless they were scraping away a bit of gold, and giving you back only .999 grams instead of the gram you bought. Ehhh - they had SOME angle on the thing, or they couldn't have done it for "free".
(Score: 0) by Anonymous Coward on Thursday June 25 2015, @03:39PM
I guess their profit model was getting some suckers to sell them the gold below market price. Or alternatively the market price they offered was not the true market price, but a bit higher. Maybe both.
(Score: 0) by Anonymous Coward on Thursday June 25 2015, @02:42AM
Gold is sell at 1100$ to 1200$/oz I, if you have a contact for gold at 120 to 200 /oz let us know
(Score: 2) by LoRdTAW on Thursday June 25 2015, @02:53PM
Psssssst...Hey buddy...Meet me at the back gate here: 37.886263, -85.966525. Bring cash.
(Score: 2) by t-3 on Thursday June 25 2015, @04:58AM
For what? Reggies? Here (near Detroit), reggies (aka compressed brick weed that was low quality to begin with) are from 60-100 an ounce if you can even find them, high quality stuff is 200-350, and the "medical" stuff is 25-50% more expensive than comparable street weed.
(Score: 2) by Pslytely Psycho on Thursday June 25 2015, @10:10AM
Note to self:
When visiting Michigan, bring my own weed.
I haven't seen brick weed in at least 15 years.
Alex Jones lawyer inspires new TV series: CSI Moron Division.
(Score: 0) by Anonymous Coward on Thursday June 25 2015, @10:47PM
A day later, but it was for outdoor grown northern light...