New goldmine: Investing in weed, yes you read that right. Legally investing in weed :)

The times of that only drug dealers can make money from weed is starting to fade away. In the Netherlands it has been totally normal for a long time already to have a "Coffeeshop" at every corner. It is also totally normal for business/family people to enter this "Coffeeshop" and get their refreshments.  (Coffeeshop is a legal store, much like a bar where you have a wide arrange of choices for your weed or hashish supplements, you can buy up to 5 gram per time here.)

It's looking that this trend is also starting to shift to our North American friends and as always with upcoming trends big money can be made here with the right choices. Below you can see an overview of the marijuana usage of the last couple years in Canada.

Figure 1: Marijuana usage Canada

So we see that consumption of marijuana is rising in Canada, but what does this mean for me? Deloitte analists stated that the demand of marijuana could rise up to 600.000 kilogrammes a year ( 1 322.77357 pounds). This is far more than the current 38 marijuana suppliers can legally deliver with their licenses.

This could mean two things: 

• Current suppliers will have to expand to deliver demand (so they rise in stock price).
• New suppliers will come up with cheap buy-in stocks that will keep rising.

The reason I scope in more on Canada than the US, is because Canada is at an already more advanced situation in relation to marijuana. Canada legalized medicinal marijuana in 2001 and in April this year the president Trudeau of Canada announced his plans to legalize marijuana for recreational use. In his plans he stated he wanted to legalize it before July 1st 2018. If you're above 21 and living in Canada you may have 30 grammes of marijuana on you at once. You are also allowed to grow 4 plants for self use.

When this happen stock prices of Canadian marijuana can "go to the moon" not only because the growth of use within the country but also through export as 2 current suppliers already have a license to export their products to Europe.

What do you think will happen? Are you gonna join this train to the moon or wait it out? Let me know in the comments!

About me

This is my first post, I'm glad to have become part of this community in which I see a great future! A little bit about me: I am a masters grad student focused on business information systems. In my free time I research a lot of financial and IT related subjects. If you have any tips/additions or anything else to the post please let me know.