Cannabis prices are plummeting, according to Wall Street Journal. That’s bad news for farmers and dispensaries, but great news if you’re a cannabis consumer. Just in the past few years cannabis prices have fallen by one third of what they were, from 15 dollars a gram down to just 10. When I consider how much I’ve paid in the pre-legalization days, that’s pretty cheap.
So what’s the reason that cannabis prices are plummeting? First of all, the market is completely oversaturated. There is a lot of pot being grown and not enough people to smoke it. This wasn’t as much of an issue when Colorado and Washington were the only places where recreational cannabis was legal. The two states had tons of cannabis tourists coming in from the surrounding states. Now of course many of those surrounding states, such as Oregon and Nevada have their own recreational cannabis markets. It’s a simple matter of supply and demand: too much supply and not enough demand.
Ordinarily, this problem could be solved by exporting the surplus cannabis, but obviously the same can’t be done with cannabis, as all the legal states have laws against exporting their herb. To do so would be a violation of state laws, and could unwittingly make them a target of the feds.
So this is bad news for growers, who have to deal with the costs of growing a crop that is increasingly in lower demand. This is great news for consumers though. I would suggest taking advantage of the noticeable dip in prices. If you were planning on opening a grow operation, now is probably not the best time.
Source: Wall Street Journal
Image Source: Westword
Have you noticed that cannabis prices are plummeting? Will this affect you? Share in the comments!