While investing in bullion makes eminent sense when the market is poised to make that downturn, the folks over at 24/7Wall St.com may have identified a better investment opportunity: Marijuana (aka, cannabis).
Yes, it may be that Wall Street is looking with favor upon this "vice" and perhaps "recession proof" investment. As of Friday, August 28:
- The spot price index for one pound of marijuana jumped $70+ to $2,045 from $1,924 in the prior week.
- ~67% of the last week's transactions occurred in a range of $1,612 to $2,462/pound.
- Transaction prices ranged from an average low of $1.1k in the State of Washington state to a high of $3.4k in Midwestern black markets. In the State of Colorado, the volume-weighted average price jumped 17% from $1,784 to $2,085/pound during the past 2 weeks.
- in 2014, the Viridian Cannabis Stock Index of 75 publicly-traded companies reported a 38.4% gain.
What might happen going forward?
- The futures price for December 2015 remained unchanged at $1,385.
- The September forward rose 4% to $1,925.
- But, for the months of October through December, forward prices decline steadily.
A smart investor would patiently wait for the price/pound to decline from its current price toward $1.4 or $1.5k and then consider getting into an ETF or mutual fund "basket" of the commodity.
That's what a smart investor would do. But, The Motley Monk has absolutely no interest whatsoever in marijuana, as an investment, purported medicine, or relaxant. Never has; never will. And he doesn't recommend that anyone do so for multiple reasons. He's just reporting the investment facts as he reads them.
That said, The Motley Monk thought the 24/7WallSt.com article worth posting. Why? It gives "Buy low, sell high" an entirely new meaning!
Let the discussion begin...
To read the 24/7WallStreet.com article, click on the following link:
To read about those publicly-traded marijuana companies, click on the following link: