Marijuana ETF, HMMJ Update And The Supply Surge!

 

Legal Marijuana Prices Are Plunging in Colorado, but Not for the Reason You’d Expect — The Motley Fool

Pot wholesale prices dive as growers flood market

The coming marijuana crash | Vancouver Sun

Wholesale pot prices hit new low as legal weed market sees surge in supply – Washington Times

 

The landscape of our new budding industry is turning at the wholesale price levels. It’s the price per gram or the price per pound that has been crashing since 2016. This means that the legal supply is catching up to the legal demand, faster than we thought would happen.

This also means that any producer who is not the lowest cost grower will have little chance of making it big, if they survive at all.  Once the government forces packaging regulations on growers, then the cost of growing marijuana increase as well. Electricity costs are a major factor where growers will set up operations. Much like Bitcoin mining, indoor hemp farming takes up just as much power where you grow 24/7.

This wholesale price crash is far from over, but really has not translated into lower retail prices. It was scary the first time I saw this HMMJ ETF and that hasn’t changed any when I look at it now.

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