You may have never thought about marijuana stocks as a worthwhile
investment—or even an investment at all—but with the changing scenario
regarding marijuanas use for medicinal purposes, you may just want to consider
this unique investing opportunity.
As with any investment, marijuana stocks are risky- especially with the
continuing struggle calling for the legalization of marijuana. But as more
companies are using the plant for purposes other than medicinal marijuana, the
fruit is ripe for the taking when it comes to investing in marijuana stocks.
The Many Uses of Marijuana
When you think about marijuana, or cannabis as it is also referred to, you may
automatically think about it in terms of smoking, but it has become more than a
leftover habit from the hippy generation.
Many products are made using hemp—a strain of Cannabis sativa. In the
past, hemp was widely used for industrial products like paper, fuel, textiles and
biodegradable plastics. Today, in addition to these, hemp is popularly used to
make everything–from handbags and clothing to skin care products and food.
Hempseed oil is often used as a dietary supplement and is known to be a useful
treatment for eczema.
Marijuana Use Around the World
A report out by the United Nations in 2004 estimated that nearly four percent of
the world’s population consumed cannabis. That amounts to 162 million adults.
Of the four percent, 0.6% (22.5 million people) used it every day.
The report also stated that cannabis is the one unlawful drug used most in the
world. With such a high percentage of use as far back as eight years ago, it is
only natural to deduce that use in 2012 is well beyond these figures—another
reason to invest in marijuana stocks. The global use alone indicates a growing
trend that can be very profitable.
The Cost of Growing Marijuana
As a potential investor in marijuana stocks, you would certainly want to know
the cost of growing marijuana and how much of a profit it can bring you.
Cannabis is the number four value crop in the United States, but it is one of the
top two value crops in states like Florida, California and New York. It averages
about $3000 per pound, which is believed to have a market value of thirty-six
billion dollars.
Legalizing Marijuana
Many people long for the day when legal marijuana exists. The movement
grows stronger every day as proponents of legalizing marijuana continue their
vocal assault on the current legislation forcing its illegality.
Supporters who are in favor of the legalization of marijuana claim that an
inordinate amount of money is being spent on law enforcement to bust those who
sell, use and distribute marijuana. They believe this time and money could be
spent on things of greater importance. Aside from that, those who are charged
with marijuana possession get a simple slap on the wrist so all that time and
money seems wasted.
They also contend that legalizing marijuana provides the government an
opportunity to tax it, making it a revenue generating business for them. However,
hard liners against marijuana claim it is a dangerous and addictive drug that is a
health hazard. So therefore, it should be illegal.
The Potential Return on Marijuana Stocks
Investing in stocks like marijuana can prove to be rewarding especially as more
and more research is being done on the many medicinal uses that it has.
Some of those include:
• The release of intraocular pressure for glaucoma sufferers
• Relief from multiple sclerosis and ALS symptoms
• Slowing the progression of Alzheimer’s disease
• Slowing down the spread of cancers of the breast and brain
• Reducing the pain experienced by HIV/AIDS patients
As more and more of these studies come to the forefront, pharmaceutical
companies will be clamoring to use them to manufacture medications that
can help, or possibly cure, many of these illnesses. When that happens, your
marijuana stocks will be sure to go sky high.
