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Investment in marijuana. Legally [Download REPORT]

Investment in marijuana. Legally [Download REPORT]

created Michał SielskiJuly 8 2019

Already in 30 countries medical marijuana is legal. If we add countries that can also be used for recreational purposes and those that are liberally approaching its use, it will turn out that this market may have an interesting future ahead of us.

The legal use of marijuana without restrictions is only possible in Canada and Uruguay. Even in the Netherlands, considered in Poland as a Mecca for lovers of green herbs with a specific smell, there are recipes that strictly regulate not only sales, but also the possession of the so-called. soft drugs. Medical marijuana is already allowed in 30 countries and work on legislative changes in this area is already under way. This makes the market grow very fast. In Canada alone, in the first quarter of 2019, 20 sold a ton of dried marijuana.

But how does this relate to the world of stock market, trading and investment? Well, the capitalization of cannabis companies on the stock exchange is 80 billion USD, and this is valued by approx. 200 joint-stock companies. You can already invest in the index of cannabis companies.


The Canadian hemp industry was established in the 2017 year

Research into the medical properties of marijuana has been around for years, but although it has been proven to relieve pain, as well as to have positive effects in treating many diseases, politicians still feared its marketing. It has been argued that marketing marijuana - even by prescription only - will result in more interest in stimulants and will lead to addiction to more dangerous drugs.

Ultimately - after further studies that proved the effectiveness of marijuana in the treatment of chronic pain or appetite stimulation, as well as under the pressure of doctors and medical communities - more countries began to admit it to a strictly controlled market. Today a doctor can prescribe marijuana in 30 countries around the world.

Marijuana legal not only at the doctor's

In two countries - Canada and Uruguay - you can smoke marijuana freely. There were several reasons: the police directly admitted that they did not win the fight with dealers and smugglers, the budget did not receive any income from this trade, and the quality of the cannabis was not controlled by anyone. The introduction of regular trading was to change that.

In the Netherlands, however, you can own up to 60 grams of marijuana for your own use, which you can easily buy in the so-called. coffee shops.

Despite not always clear law, companies in this industry arise like mushrooms after rain. Large, listed on stock exchanges, is already around 200. Many of them buy goods in Canada to sell them in pharmacies in Germany, Australia or New Zealand.

Investment in marijuana

In 5,5 a month after legalization, stores in Canada sold cannabis for USD $ 10 million. It is worth noting that the stores selling this product are still relatively small, because it takes several months to settle all permits, licenses and procedures.

However, you can already invest in companies that earn both medical marijuana and sold for recreational purposes. You can also invest in the entire sector. Hemp index USCANNA, listed among others on the XTB platform, contains 20 hempen companies. 16 from Canada, 3 from USA and 1 from Great Britain. You can trade it with the lever 1: 10.

cannabis index

Index chart USCANNA. Source: xNUMX XTB xStation

The XTB report on the cannabis industry reads:

“The BITA Global Cannabis Giants Index is calculated by BITA, a German company dealing with financial technologies, which premiered on November 16, 2018. It is an income index, meaning it takes into account the reinvestment of dividends. The BITA Global Cannabis Giants Index comprises the 20 largest listed companies related to the cannabis sector. To qualify for the index, a company must generate at least half of its cannabis revenues, be listed on a reputable and liquid stock exchange, and have an average daily turnover of more than $ 90 million over the past 1 days. ”

The company accounts for half of the index value: Tilray, Canopy Growth, Aurora Cannabis i GW Pharmaceuticals. If you are analyzing the value of the index, it is a good idea to start focusing on their results, as well as on the Canadian government's publications, which informs on the results of cannabis sales by licensed resellers on a monthly basis. Who knows, maybe this market will turn out to be such a gold vein as the beginners kryptowaluty were there a few years ago?


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About the Author
Michał Sielski
Professional journalist for over 20 years. He worked, among others, in Gazeta Wyborcza, recently associated with the largest regional portal - He has been present on the financial market for 18 years, he started on the Warsaw Stock Exchange when the shares of PKN Orlen and TP SA were just being introduced to the market. Recently, his investment focus has been exclusively on the Forex market. Privately, he is a parachutist, a lover of Polish mountains and a Polish karate champion.

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