When medical marijuana became legal in some U.S. states, we knew it was going to lead to the legalization of recreational marijuana. Now Colorado and Washington have made marijuana legal for recreational use for people 21 years old and over, and it’s only a matter of time before many other states follow.
This is especially true because of the enormous amounts of money this industry could generate. According to CNBC, the marijuana industry could end up generating tens of billions of dollars.
The federal government has also recently given the green light to states by stating that it won’t stand in the way of state legalization of cannabis, as long as there are strict regulations that come along with the laws.
The Move Towards Marijuana Legalization
In January, Colorado will be able to start opening up pot-selling stores. Yes, you can walk in and buy yourself some marijuana without fearing prison time.
Washington's stores will open later than Colorado because the state is still attempting to meet demand. It’s estimated Washington will be selling the substance in stores in the early part of summer 2014.
Starting in December, Washington will begin allowing residents to grow marijuana plants. Each resident wishing to take up this form of gardening will be issued a license. Since December 1st is the earliest residents can get a license, buds won’t be available until at least spring.
As part of Washington’s law, there can only be 334 stores. While this number doesn’t seem high for a large state, if it’s divided among the counties, it equals about 8 stores per county. Most counties don’t even have that many convenience stores, so it’s likely not going to be much of a problem.
With Colorado already well on its way to growing the recreational marijuana industry, many other states are getting themselves in position to do the same. Most of the states on the brink of legalizing marijuana already recognize medical marijuana as legal.
All they need to do is get the vote on the ballot and bring it into legislature with a winning vote. This will probably not be a problem in many of these states because according to polls, more than half of residents are in favor:
Alaska: 54% of residents reported they are in favor of legalizing marijuana on a Democratic-leaning Public Policy Poll.
Arizona: 56% percent of residents reported they are in favor.
California: 54% of Californians support recreational marijuana use.
Nevada: 56% favor cannabis legalization, as long as profits fund education.
Oregon: 57% of Oregon residents are in agreement with the legalization of pot. Activists are pushing for it to be on the November 2014 ballot.
Maine: 48% of voters are in favor of making pot legal. The percentage is less than 50%, but it’s so close that when voting day comes, the additional voters who weren’t part of the poll may win the vote.
Massachusetts: 58% of Massachusetts residents report they are on board with regulating and taxing cannabis.
Rhode Island: 52% of residents believe cannabis should be legal for recreational use.
Join Wealth Daily today for FREE. We''ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: "Gold Outlook for 2016"
It contains full details on something incredibly important that''s unfolding and affecting how gold is classified as an investment..
Investing in Recreational Marijuana
If you didn’t take advantage of the medical marijuana industry, you have another chance with the push for recreational use. It’s evident that Colorado is ready to take the weed market by storm. The state knows there will be a demand for it, and it's ready to cash in. The same goes for Washington and all the other states that will follow throughout 2014 and into 2015.
The industry is just gearing up now. It won’t be until 2014 – when Colorado and Washington can start selling it – that investors will really see the world of weed open up. Right now is the best time to get in with companies that will be capitalizing on the market. Prices are low, so you’ll be able to make out when they rise, as there is more of a demand for their services and products.
Some of the companies you may want to consider are:
AGCO Corporation (NYSE: AGCO) – This company supplies agricultural machinery. The machinery can be used to cultivate cannabis plants to meet demands. With Washington growers getting their licenses on December 1st, it’s only a matter of time before this company starts receiving orders for marijuana farms.
Rentech Nitrogen Partners (NYSE: RNF) – Fertilizer is important to the successful growth of cannabis, so this company could see great gains in 2014. Before the spike, invest in this company’s low prices. This morning, shares opened at 26.52.
Medical marijuana is still growing by leaps and bounds as more states join the initiative. Companies involved in the research and development of it are:
Cannabis Science (OTC: CBIS)
Medical Marijuana (OTC: MJNA)
GW Pharmaceuticals (NASDAQ: GWPH)
Keep in mind that investing in pot is high risk right now. The industry is new, and no one knows for sure where it will go. Do your research, come up with your own projections, and invest wisely.
If you liked this article, you may also enjoy: