Australian Politics

The Marijuana Gold Rush and You

Daniel Archibald takes a look at how Australians can make money in marijuana should the drug become legalised for recreational use, as in the US state of Colorado.

The steps to becoming a successful marijuana entrepreneur are straightforward. The first step is to live in a country where legalised recreational marijuana exists. Unfortunately, because Australia has not legalised recreational marijuana, that’s the end of the road for you. However, it’s likely that this won’t always be the case.

Personally, I am against the legalisation of recreational marijuana. Contrary to this I’m also a realist. Recreational marijuana legalisation is increasingly seeming to become a fact of the future. While I have my reservations towards marijuana legalisation, I am not opposed to taking advantage of what seems to be certain change. After all, if you can’t beat them you might as well join them.

Unless you were alive during 2004 and bought shares in Google, your next bet to get in on something big is right now. Marijuana ventures have been proven to be highly lucrative. The great green gold rush happening in the United States is a prime example. In Colorado, a pioneer of marijuana legalisation, total sales in 2017 alone exceed $1.5 billion USD (around $2 billion AUD). The majority of which comes from recreational retail sales.[1] This means the state of Colorado brings in around $247 million USD (around $338 million AUD) through sales tax.[2] Per square foot, the average recreational marijuana dispensary makes around $974 USD (around $1,300 AUD) per year. Higher than some clothing department stores and trendy upscale grocers.[3]

It’s clear that not only are there vast profits to be made for entrepreneurs but also vast profits for the state. The state has an incentive to legalise recreational marijuana. With high tax income funded by marijuana sales tax, Australia will have plenty of cash to utilise. The money could go towards education, healthcare, or defence. The possibilities are near limitless.

Australia is particularly in a good position to reap massive profits from recreational marijuana. Firstly, Australia’s climate is prime for growing marijuana. Our steady warm weather and cool winters make for a great growing environment. Secondly, given Australia’s large agriculture industry, the infrastructure needed to mass produce marijuana already exists. Additionally, friendly foreign import attitudes would allow for Australia to export that home-grown green gold, effectively adding to our already large agriculture industry and allowing for further diversification and profit growth.

When recreational marijuana becomes legal in Australia it will be a once in a lifetime opportunity to get in on the next big thing. It will be your chance to make your millions. While every business venture includes risk, few business ventures allow for the profit potential that recreational marijuana allows. If there is ever a referendum to legalise marijuana it would be in your capitalist interest to vote yes, even if your personal beliefs, like mine, somewhat conflict with your vote. Whether we like it or not, recreational marijuana is just around the corner and it would be best to take advantage of the inevitable instead of fighting an uphill battle. After all, it’s hard to fight the currents of change. Especially when change is so profitable.


[1] Colorado Department of Revenue, Marijuana Sales Report (2018) https://www.colorado.gov/pacific/revenue/colorado-marijuana-sales-reports

[2] Colorado Department of Revenue, Marijuana Tax Data (2018) https://www.colorado.gov/pacific/revenue/colorado-marijuana-tax-data

[3] Jonathan Berr, CBS News, How profitable are pot shops? You’d be surprised (2016) https://www.cbsnews.com/news/how-profitable-are-pot-shops-youd-be-surprised/

 

Cover image from Flickr.

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