Pot Investment – The Good, The Bad, and The Ugly
Considering Pot Investment but don’t know the risks? Well, there is still a high risk proposition, but they’re getting smaller. Here is a look at the changing world of the cannabis marketplace, and the different ways a cannabis investment can play out in the short and long term. Does it make sense to you to invest in cannabis? Read on and decide for yourself:
The Good
Cannabis is an emerging legal market with a large customer base already established. As of 2014, two states, Washington and Colorado, have legalized recreational marijuana. Twenty-three states plus the District of Columbia have legalized medical marijuana. This makes cannabis legal in almost half the nation already. Medical marijuana pharmacies have already done a great job in bringing a number of original, accessible cannabis products to expand the product past the smoker stage. The innovation, the customer base, the states still left to legalize, and the past successes are all great reasons why cannabis investments can be smart and profitable today!
The Bad
The federal government has not yet let go of the marijuana issue, and there is still a legal gray area, even in states where recreational use has been legalized. It appears for now that businesses that are transparent, above board, and keep their noses clean and their books open will not be harassed. But that is not a guarantee. As social and legal attitudes shift towards regulated marijuana use, the federal government will likely no longer have a reason for such a disagreeable stance. It took time for the nation to change their mind on slavery, women’s rights, and alcohol! They are still actively changing their minds on gay marriage. Marijuana is far behind.
Just as recently as September 25th, Attorney General Eric Holder announced the Obama Administration’s contemplation of re-scheduling Cannabis to a lower grade Class III substance.
The Ugly
The ugliest part of thinking about whether to invest in weed is the awful realization that you have been waiting too long. Right now, the opportunity for ground floor profits are abundant. Fifty states worth of customers want the product. Dozens of countries have been lieberalizing and legalizing this industry. Only twenty-three states have prescription access, and two have recreational access. This number will grow exponentially in the next decade. Marijuana growing facilities have a high starting cost that can return profits in multiples of thousands. Shops need startup money, but only to sell a product that sells itself on the black market every day. Ancillary Industries and service providers need funds to create proper structure and regulation compliance. Scientists find more positive medical uses for this miracle drug every few years, and its popularity as a pharmaceutical is getting higher and higher. The biggest danger is waiting until the market is saturated to cash in on a sure thing.