Marijuana smokers smoke weed for many reasons, be it for relaxation, to have fun or for medicinal purposes. No matter what your reason for smoking bud, the cost of marijuana can be a burden for those who love it. That is, if you are living in a place where marijuana isn’t legal. The illegality of marijuana is factored into the price of those who move it. An eighth of weed can run smokers as high as $60 in some places. However, reports indicate that weed prices in Colorado, a state where marijuana is legal for recreational use, are plummeting.
Marijuana has been legal in Colorado for over a year now and the industry continues to grow in the state. The drastic price drop can be attributed to increased competition and the expansion of growing facilities, but according to Convergex, it is “a natural result for any maturing industry as dispensaries try to find the market’s equilibrium price.”
Convergex went on to report:
“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.”
“The state grossed $3.55 million in revenues from the 10 percent retail sales tax in January, which suggests stores earned $35.5 million in revenue. That’s a 153 percent increase from the prior year. Revenues in February and March grew by 164 percent and 126 percent on the year respectively, while sales rose by 98 percent year-over-year to $43.9 million in April.”
All-in-all, it sounds like marijuana legalization is a good thing for smokers (and economies) everywhere.