This Survey Says That Marijuana Prices Are Crashing in Colorado

[n2doc]

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.

more

http://www.bloomberg.com/news/articles/2015-06-22/this-survey-says-that-marijuana-prices-are-crashing-in-colorado

[msongs]

1. it's still way overpriced for what is essentially a dried out shriveled up weed. government drug

pushers want to have a monopoly to keep the prices artificially 'high'.

[Erich Bloodaxe BSN]

2. Got to get it to the point where various strains are sold simply in seed catalogs.

Let people grow their own if they're interested, or buy in shops if they've got brown thumbs.

[RussBLib]

3. hallelujah

Those "former prices" kept legal weed more expensive than black market weed. Those "new" prices are very welcome and will put pressure on black marketeers to lower their prices.

A price war is one of the few types of wars I can appreciate happening.

[eridani]

4. Legal weed is definitely more expensive in WA State

I don't mind paying extra, though, because the quality control is far higher, it has component labeling, and the proceeds support public goods.

[RussBLib]

6. exactly

you sometimes have no idea what you are buying on the black market, or what they might be doing with that money

buying from the state you expect your tax dollars will go for some kind of public good

[jomin41]

5. Yes, growers from Colorado

are wandering down here to NM with their goodies. Welcome!