We are living in crazy times!
Interest rates on mortgages and auto loans are skyrocketing. Uncertainties across the globe as the war in Europe continues. Canadians are beginning to see prices on basic necessities like gas and other food items starting to soar.
In a time like this, many of us in the community who enjoy smoking or consuming marijuana as a hobby are questioning how all this will impact the price of cannabis. Should we be stockpiling on edibles before they increase 300% in price? Or is the smart money to hold cash for a while and pick up the goodies in a few month’s time when the market crashes harder than NFTs?
The short answer: a bit of both, depending on the type of cannabis products you’re into.
The Canadian Economy and Fluctuating Prices of Marijuana
To paint a more complete picture, we must visit how exactly are marijuana buds produced in Canada.
First you have the growing facility, which costs the cultivator rent or property taxes to maintain. Living costs are going up. Basic electricity and hydro bills are also on the rise. Even components we don’t usually consider such as fertilizers and soil are also costing more to source. In such a climate, most licensed brick and mortar dispensaries are tagging on the extra costs directly to their products, making the prices of products a direct reflection of market trends.
On the other hand, your typical online dispensary will try to eat as much of this cost as possible to stay competitive and not lose customers to bigger players who’s able to play the loss leader.
As a result, many Canadian shoppers who are a regular at their local head shop are starting to buy weed online, while those who have been shopping online for a minute may see a few cents to dollar increases on their usual favourites. Everyone’s hurting at a time like this, and the effect is likely to continue over the course of the next couple months.
Should You Be Buying Marijuana At a Time Like This?
It’s difficult to say whether the prices of weed will get cheaper or more expensive in the months to come. If the price of everything continues to go up, cannabis will too, making buying now the smart choice given if the form of cannabis is non-perishable like edibles or vape pens. If you’re more of a flower and pre-roll person, there’s not much of a choice other than maybe picking up a few seedlings to cultivate for yourself.
Supposing the prices of everything will continue to rise, we recommend a few principles to maximize your buck and to make sure you don’t overstretch yourself in your cannabis budget. These principles are:
- Go for quantity over quality, but both if possible
- Given the diminishing return on cannabis, now isn’t the type to dish out racks for connoisseur-grade craft strains if your pocket is tight. As much as we hate to say it, revisiting the roots of what really defines the hobby is sometimes the way to go.
- Stockpile on non-perishable cannabis products
- As mentioned previously, if you’re an avid consumer of weed edibles, vape pens, vape cartridges, CBD capsules and tinctures, hash, concentrates, or even dried mushrooms, now is a good time to sit on a manageable amount of inventory before things go more south.
- Shop with online dispensaries (like us) instead of local
- The premium to pay for these licensed dispensaries are about to skyrocket. Online dispensaries will see small increases too as a trickle-over effect. If you currently shop local, now is a good time to find and stick to a A-tier online dispensary before prices universally increase across all outlets in Canada
- If you vend, consider taking it easy
- If you’re the person in your group of friends that’s responsible for buying the loud and kicking it around for a slight premium, consider taking a break or going agile on inventory for now. We still haven’t seen the full effect of this bear market, and with the feds still planning to increase interest rates, those in your friend group who are just barely above water in financial responsibilities may not be able to keep up with the cannabis hobby
Speaking of edibles, at this time of the year, many chocolate bars and hard candies are susceptible to melting in this beautiful weather (soon™) . Read up on our article here on what to do if your edibles melt.
What Will Happen to Weed Prices When the World Returns to Normal?
Given if the world does return to “normal”, whatever that will be, the prices of cannabis can go whichever way. Because the price marijuana is not pinned to behave similarly like necessity items such as gas or toilet paper, nor is it a traditional regulated item like alcohol or tobacco, it’s difficult to forecast the future price of weed.
With that said, the most important thing is to think ahead and get over the next stretch! If you have financial obligations to plan for in the next few months or years, it’s a good idea to adjust your weed allowance accordingly, or even switch up on your consumption patterns. Really enjoy Bliss gummies but your tolerance requires multiple cans just to feel a buzz? Consider trying out the infamous Baroness Unicorn. Friends not interested in pitching in to pass a blunt around? Get your own with an Aira vape pen kit.
Looking Forward and Planning Ahead
As we’ve mentioned, there really hasn’t been a time like the one we’re living in now. We’re all waiting to see how this one unfolds and plays out, but in the meantime, it’s still important to take care of and enjoy yourself! For most of us, cannabis has become an essential part of our lives throughout the last 2 years’ semi-lockdown, and will continue to be for a long time. Keep watch the market, but don’t forget to also enjoy the hobby for what it is.