The legalization of medical pot in 14 states including, of course, California, has driven the price of weed down to new lows.
This, of course, makes no economic since, since legalization = more demand = less supply = higher prices, in our own read of classic business theory.
But the supply lines seem to have proliferated and, despite California law that stipulates medical cannabis must be cultivated and shared among those "seriously ill" members of nonprofit collectives (yeah right, grandma is growing this stuff in a Chia Pet for the local pot club) medical bud has turned into a big money game.
Maybe pot prices are more akin to iPhones: Cool people get it at first, then the price goes down, availability widens, demand goes up, but the market gets bigger, your boss gets one, and the price goes down again. And everybody's high and/or playing Tetris on their phones.
What we're saying here is, like Apple, pot suppliers have seized on expanding markets and opened the floodgates on their product, driving prices down. And those suppliers ain't grandma.
Anyway, USA Today notes that "the average price per ounce nationwide had fallen $49 in the past month alone" earlier in fall.
Those crunchy, Birkenstock-wearing California-haters in Oregon enjoy the lowest pot prices in the country. Weed is $259 an ounce there. In Georgia and Virginia, where medical weed is not legal, bud sells for $452.
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Hear that? That's the sound of the cartels saying "legalize it or you'll pay."
But seriously, does anyone believe that low pot prices are the result of grannies joining up to form collectives in medical-legal states?
Or maybe, just maybe, it's those massive, gang-controlled grow houses and border-crossing, kilos-on-their-backs mules funneling as much bud as they can into pot-friendly states that are causing these low, low prices.