Or even what’s different between lithium and cannabis?
It’s clear and obvious that lithium is the sexy mining story of our time. But as with the sex appeal of any individual, it does fade over time. The only interesting question is – how long will it take? So, when considering the varied lithium miners we can buy into or trade, how long is it going to take for this story to fade in attraction?
One answer might be that it already has. We had a boom in lithium mining investment back in 2013/14 and one of the graduates of that, Altura, has already gone bust. It did get to production, but just couldn’t carry the costs of having got there.
They’re both used by Elon Musk?
The main problem with cannabis startups is that they don’t tend to employ anyone who knows how to grow things, hence inevitable and expensive failure.
It’s the same with vertical farming.
Don’t know why this is but suspect it has something to do with the feeling of those involved that it has to be sexy. And farming isn’t that.
The main problem with cannabis startups is that they don’t tend to employ anyone who knows how to grow things, hence inevitable and expensive failure.
All the people I’ve known did cannabis start ups were very good at growing the stuff. And selling it. It was getting busted for it was the problem.
Legalised here and a lot of startups who had been growing it before suddenly found that legalised with all the rules (not just cannabis growing regulations also employment, safety, environmental etc) meant it cost a lot more per unit to produce than they expected and was a lot more hassle than before
it cost a lot more per unit to produce than they expected and was a lot more hassle than before
Seems counter-intuitive. Were they siphoning off the electricity before? I would have thought organised weed-growing at scale in the market where it is to be sold should be a pretty straightforward way to make money.
Having just bought an ounce of legal Wa state weed for less than $250, isn’t the problem with making money from cannabis massive oversupply?
May I note that I watched a 1973 Mannix rerun where the price of two kilograms of heroin was $800,000; has the price fallen tenfold since then, despite the war on drugs?
How does such massive superabundance fit the scarcity assumption of economics?
If you’re having to pay for it, it’s scarce, innit? You aren’t having to pay for the oxygen you breathe. That isn’t scarce. Seems a bit weird to think “prices were high, then production increased and now prices are low” is some kind of violation of All Known Economics.
Economics doesn’t assume scarcity. It observes what happens when scarcity exists.
Having just bought an ounce of legal Wa state weed for less than $250, isn’t the problem with making money from cannabis massive oversupply?
May I note that I watched a 1973 Mannix rerun where the price of two kilograms of heroin was $800,000; has the price fallen tenfold since then, despite the war on drugs?
You were done or on the wrong continent. Maria in Spain’s around 5€/g if bought in small quantities. For 28, wouldn’t expect to pay more than 100€. With connections it’s possible to get it down to 2€/g for 100€. London can be cheaper. There’s a great deal of industrious indoor farming keeps the price down. It’ll also take your head off. You heard of skunk?
Most prices you read for drugs are fantasy to fit the storyline or the numbers are not for the quantities being talked about. The police may claim to have intercepted £x million of coca. But that’ll be based on buying ½g’s in the toilets of a West End nightclub at 3AM. Here in Spain you might buy a gram on the street for 60€ or 10 delivered for 400 & the further up the chain you go the price falls as the quantities get larger. On the other hand, at the street level it’s probably been stepped on so isn’t pure coca. In ’73 I can’t imagine even the single wrap price for heroin would get near to 400 bucks/kilo. (£/$ was 2.40*) You could buy hash in London for £10/ounce. Wasn’t nearly my scene but something like £5 a wrap for H? From my vague memories that looked like about ¼g coca looks like now. Provide several hits.
*Drug prices across countries tend to be similar because it’s really all one market. Unless you’re talking about where they originate from. Most of the price is getting them to the consumer.
Good blog Tim’s isn’t it? We even do druganomics.
Or even what’s different between lithium and cannabis?
The answer to that one, of course, is one’s legal the other one isn’t. There’s a legal market in cannabis competing with an illegal one, where the illegal has all of the advantages.
You can’t slip out into your garden & harvest your latest crop of refined lithium.
I don’t think Lock. Stock and Two Smoking Barrels would have been as much fun if Rory Breaker and his lads had been mining lithium.
Why do farmers supply more into falling markets?
@ 8:41 pm
“Having just bought an ounce of legal Wa state weed”.
That explains it then………..
Like so many of his questions, Addolff, they contain the answer.
Why does he think the market’s are falling?
I getting increasingly convinced this is a RM sockpuppet
If taxes on my ounce were taken off would my cost be around $100?