The prices for marijuana vary fairly considerably from legal state to legal state. As a whole though, the price of wholesale marijuana has been on a steady decline for years now, which bodes well for consumers but is not great for producers.
Like any other commodity, marijuana’s price is likely to remain fairly volatile due to seasonality, natural disasters and other general trends. While the legal marijuana industry is basically still in its infancy, prices for cannabis have been extremely volatile but the precipitous decline in price has producers wondering where the bottom is. Groups like Cannabis Benchmarks are doing what they can to provide that answer.
The findings were published in the Denver-based firm’s new 2017 Annual Review and Outlook, which examines the U.S. spot index for legal cannabis. Similar to commodities like gold and oil, the independent price reporting agency tracks spot prices — the current value in the marketplace at which an asset can be bought or sold for immediate delivery.
“It’s anyone’s guess exactly where that is, considering the different market structures in the various states,” he said. “But I think we’re getting close (to the bottom).”
“While prices declined in (Colorado and Washington), they did so fairly gradually,” Koh said. “The landscape in those two markets is pretty settled on the whole, so you didn’t see a lot of abrupt regulatory changes like you’ve had in the past — no big overhaul of rules like what took place in the first couple of years of those markets. So businesses were just able to go about their day-to-day operations with less turbulence.”
The price of marijuana should be pretty affordable after the market finally settles down considering it does grow like a weed. Not to take anything away from the hard work that growers and cultivators put in to caring for their plants, and certainly indoor grows are particularly complicated. What do you think the price of an ounce of marijuana should be when it is all said and done?