Wednesday, April 30, 2014

The Best Deal, Watching Emerging Markets

"Four months into legal recreational marijuana in Colorado, the market for medical cannabis is still by far the most cost-effective way to purchase pot in the state, a FiveThirtyEight analysis has found."

It is interesting to note that medical is cheaper than recreational pot and the reason for this is an unexpected decrease in supply in the first few months. And along the five basic quantities that are sold in a given period of time, there are price fluctuations (toward the consumer’s favor) as the consumer climbs the ladder of quantities.

It seems as if the demand and supply have not met yet….I say that because the demand is abnormally high yet I predict within a year and a couple growing seasons, depending on strains, the market will change and stabilize, seeing a slow mirror of the medical market.

Another reason for a choppy beginning:
There was an ‘automated’ effect which contributed to a downgrade in product with the anticipation of legalization, thus we see these fluctuations occurring naturally in response.

Lastly, the consumer and state confidence for this product is so high that demonstrating legal cannabis as a revenue generating giant will happen but in due time. Growers, sellers, and advocates are just 'jumping the gun’ due to its recent legalization.

http://fivethirtyeight.com/features/medical-marijuana-is-still-the-best-deal-in-colorado/

1 comment:

  1. I am surprised by the one alternative that has not be factored in and that is people beginning to grow their own. But more places will appear on the map to sell as the years go by so I believe the economy will stabilize .

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