Legal pot prices appear to be dropping according to price data from the past six months
Recently, the explosion of "pot stocks," such as those for cannabis producer Tilray ($NASDAQ:TLRY), has been the talk of investors and news outlets after a week of wild trading. Marijuana has also been in the news due to its upcoming legality in Canada and a recent United States Drug Enforcement Administration import approval for clinical trials.
As the market is set to see plenty of growth in the months and years to come, it's worth looking at the price of pot... Or at least, marijuana that's being sold legally. We've been tracking the pot trade since earlier this year and now have some data that's showing some interesting trends.
Enter the Bluepoint Wellness dispensary in Connecticut, a state where marijuana is legal for medical purposes. When looking at the price of all types of medical marijuana and paraphernalia sold at the dispensary, there appeared to be a decrease in price. Specifically, looking at the dispensary's inventory from March 24 and September 19 shows a $4 difference in price — $77.30 vs. $73.27 — over the past six months.
Reading more into the data, there were several factors that caused this drop; one of which is different strains of marijuana being sold at different time periods.
These strains have different levels of THC and other cannabinoids, but are still created by the same cannabis producer.
Furthermore, not all prices changed over the last six months, especially when it came to the price of edibles. A look at a few products from Sativum OB, a producer of edible goods with THC baked into them, reveals a stagnation in prices.
|Product Name||March 24 Price||September 19 Price|
|Sativum OB French Toast Cookie 4001 (AGL)||$17||$17|
|Sativum OB Peanut Butter Cookie 4000 (AGL)||$10||$10|
|Sativum OB Pistachio Granola Bites 3991 (AGL)||$25||$25|
|Sativum OB Red Velvet Brownie 3788 (AGL)||$10||$10|
Whether it is one of these inferences, a combination of them, or nothing of the sort, we are unsure. Given the legality of marijuana in the United States, tracking its price is extremely difficult. However, this sample case gives the idea that there is more supply on the market as the drug is becoming legal in more states for either medical or recreational use.
There are also factors outside the store that could cause this drop, including the state government's recent approval for an medical marijuana program expansion to patients with, among other conditions, severe rheumatoid arthritis and intractable headache syndromes. That opens the door for more dispensaries and more supply being shipped into or made inside the state.