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Are Global Cannabis Prices Headed For a Serious Spike?

Are Global Cannabis Prices Headed For a Serious Spike?

By Grow How

Cannabis prices have been the subject of heavy debate since pretty much the first day the legal market came into effect. There’s plenty of logic on both sides of the fence, but the general consensus seems to point to a future where cannabis prices fall significantly. To such an extent that there are quite a lot of people predicting an outright “collapse” in terms of the overall value of cannabis.

 

After all, given the fact that this once-exclusive product can now be legally grown at home by countless millions of people, it can’t possibly hold onto its value for long…right?

 

You’d think so, but then there are others who expect to see sweeping price hikes over the coming months and years. Perhaps on such a level to make cannabis prohibitively expensive for vast swathes of the market.

 

So what’s the truth as far as cannabis pricing goes? Can we expect to see things swinging wildly in either direction going forwards? Or are things likely to stay pretty much as they are right now?

 

Flawed Logic
To be honest, the truth lies somewhere in the middle. While there is definitely logic on both sides of the argument, it is somewhat flawed in both instances. Or at least, not quite as simple as it seems.

 

From time to time, predictions as to cannabis price hikes and plummets have proved and will continue to prove accurate. Which for the most part comes down to the fact that the cannabis pressing issue is extremely regional and temporal at best. Even in a single country where cannabis has been legalised to one extent or another, regulation can be spectacularly different from one state or region to the next. Which means that while one locality may enjoy free and easy access to cannabis that costs next to nothing, head over the nearest state line and you could be looking at an entirely different story.

 

Still, you would expect that as progress continues to be made in the United States and Canada, overall global cannabis values can only fall as time passes.  Unfortunately, when taking into account the hard facts and reality of things, the only movement we’re likely to see over the coming 18 months will be in the opposite direction.

 

That being, global cannabis prices are set to increase…perhaps dramatically.

 

International Demand
But how can it possibly be that the wider the availability of a product like cannabis, the more expensive it becomes globally? The answer – you only have to look at the problems being faced in countries like Australia and Germany right now to understand it all.

 

Over the next couple of years, as they take their own steps further towards at least partial legalisation, these two countries – and perhaps many more like them – will find themselves in need of all the medical cannabis they can get hold of. Already, demand is outstripping supply to a spectacular extent, meaning that cannabis prices in some German regions have increased 300% over the past year or so. Which is a pattern that’s only set to increase going forwards, as more people find themselves eligible for medical cannabis prescriptions.

 

The long and short of it therefore being that there will be any number of countries willing and able to pay just about anything for cannabis from abroad.  In which case, it’s not as if those supplying it are going to make it available for next to nothing. Instead, they’ll focus their efforts on international buyers willing to pay way over market averages, reducing what’s available domestically.

 

As a result, global and local cannabis prices could increase significantly.

 

Of course, it’s all educated guesswork for the time being as no one really knows where and when full cannabis legalisation will be rolled out next. But if things continue along the lines of current trends, the days of practically free cannabis might not be quite as close as initial logic would suggest.

 

 

 

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