The Colorado pot industry is having a party. With stores beginning to legally sell marijuana for recreational use, the laws of supply and demand have taken over. Right now, with only a few dozen recreational shops in operation, legal supply is reasonably low. But demand is skyrocketing, and many stores say that they’re already on the brink of selling out.
That means, as Bloomberg reports Monday, that marijuana dispensaries that are licensed to sell recreational pot are jacking up prices. An eighth of an ounce of medical pot has been going for around $25 in Colorado. Now, a recreational eighth is going for more like $45, roughly doubling the price.
That may sound like a steep increase. But for people who may be more accustomed to buying pot off the street, $45 is a deal worth taking.
In our nation’s capital, a high-quality eighth is going for as much as $80 in 2014, according to Price of Weed, a self-proclaimed “global price index for marijuana.” A medium-quality eighth in Colorado’s neighbor, Wyoming, went for $60 this past December.
When you look at the price of a full ounce, things get a bit dicier. In Colorado, a recreational ounce of pot is now going for an average of $400, compared to $200 for medical. That’s a pretty high number by most standards. The average price of a high-quality ounce in D.C. is $352.18, and nearly the same in New York. A high-quality ounce also goes for about $350 in Colorado border-states Kansas, Nebraska, and Wyoming. The price is about $300 in Arizona, just under $300 in Utah and New Mexico, and just over $360 in Oklahoma.
That roughly $50 difference between the legal, recreational high-quality eighth and a high-quality eighth off the street may seem like a lot to some shoppers. But when you factor in risk, it’s easy to imagine rationally paying that extra $50 for peace-of-mind and a bit more of a choice and quality-assurance in what kind of pot you’re buying. And it can also be something of a time-suck to track down and purchase illegal pot, especially compared with the ease of just walking into a store.
Not to mention, the high current costs of recreational pot in Colorado are unlikely to last. “As more businesses open and the businesses get a sense of what the demand is and are able to meet it,” the executive director of the National Cannabis Industry Association tells Bloomberg, “the prices will go back down.”
The price of legal recreational pot in Colorado may never get as low as the price for medical marijuana. But that doesn’t mean it won’t quickly become a much better deal than you can get off the street.
What We're Following See More »
"President Trump is expected to announce that Wall Street financier Anthony Scaramucci will be White House communications director, according to two sources familiar with the planning. Trump has left the role open since Mike Dubke resigned in May, and the President has vented frequently to his friends about the performance of his press operation." According to NBC News, Steve Bannon and Reince Priebus are resisting the move.
"President Donald Trump's second-quarter job approval rating has fallen below what any other past president has gotten during the same time frame. A new Gallup poll found that Trump averaged a 38.8% rating between April 20 and July 19. The average approval rating for that time is 62%. President Obama was at the average during this time period, as was President Nixon. President Clinton is the only president who was below 50% by the second quarter, coming in with a 44% approval rating." There is also a large partisan gap. "Just 8% of Democrats approved of Trump's job performance during the second quarter, but 85% of Republicans did. Approval ratings have become increasingly polarized in recent administrations, but the 77-point gap for Trump is a new record."
"The US government will soon prohibit American citizens from traveling to North Korea, according to two tour groups that cater to Western tourists who want to visit the secretive country. The US will announce the ban within a couple of days, said Simon Cockerell, general manager of Beijing-based Koryo Tours. The agency was informed of the development by officials of the Swedish government, which represents America's interests in North Korea, he told CNN."
"Federal arts and humanities programs targeted for elimination by the Trump administration would get a lifeline from House appropriators willing to ignore the president’s proposal and keep them running. The $31.5 billion fiscal 2018 Interior-Environment spending bill approved by the House Appropriations Committee on Tuesday includes $145 million for the National Endowment for the Arts. While that’s still a 3.2 percent cut from the fiscal year 2017 enacted level, it is more than $116 million above Trump’s budget request. The National Endowment for the Humanities would receive $145 million in fiscal 2018, which is $103.7 million above the White House budget request."