Based on events over the last couple of years and burgeoning legal marijuana industry in Colorado and elsewhere, you would think the industry is booming. And it is, but just 3 short years ago, the story was much different.
The story of the marijuana market — a business that thrived on the street for decades before developing the market sophistication to lead to a commodity crash in brick-and-mortar stores — is one of the most interesting economic stories of our lifetimes.
Interesting indeed – since marijuana has only been available on the black market for such a long time, a price crash was bound to happen once it became legal. Despite wild price fluctuations, heavy regulation and crazy banking restrictions, the legal marijuana industry has managed to establish itself.
What’s going on in Colorado is an outstanding case study in what happens when a black market becomes a legal one, and it’s something we probably won’t see again in our lifetimes.
Read more about the great price crash of 2011 in this insightful article from Business Insider….