Australia’s Marijuana Goldmine

australia marijuana stocks

From commercial production to prohibition, and right through to legalisation, Australia has well and truly come full circle on the issue of cannabis.

When hemp seeds were first brought to the country on board the First Fleet, the British envisioned the plant would be produced commercially in the new colony.

They had such high hopes, in fact, that in 19th-century Australia the growing of hemp was actively encouraged by the government. Cannabis consumption was widespread too — both for medicinal and recreational purposes.

It was only in the 1920s that Australia, following in the footsteps of the US, enforced sweeping prohibition. Cannabis was lumped in with drugs like heroin and cocaine, as little research had been done into the uses and potential benefits of the plant.

Then came the ‘Reefer Madness’ campaigns of the 1930s, which somewhat hilariously dubbed cannabis as ‘an evil sex drug that causes its victims to behave like raving sex maniacs.’ The fictitious claims made in this long-running scare campaign continued to influence public consensus for decades.

Looking back on our history, the federal government’s recent decision to allow the use and export of medicinal marijuana marks the beginning of a new era.

It’s a step away from the fear-mongering, dictatorial tactics of past governments. And acknowledges the rights of Australians to decide how to manage their health and wellbeing.

Health Minister Greg Hunt was instrumental in bringing the issue to parliament, stating that legalising exportation is a ‘very important step for our domestic patients and our domestic supply.

Indeed, for domestic patients, marijuana plays a crucial role in easing the symptoms of a myriad of conditions, including epilepsy, chronic pain and multiple sclerosis. And the government’s decision to increase production will ensure those patients always have supply at hand.

However, it’s also a tactical business move. And exportation could establish Australia as a major player in this bourgeoning industry. As Mr Hunt confirmed:

We would like to be, potentially, the world’s number one medicinal cannabis supplier.

Recognising the immense potential of the industry, the Victorian government has elected to supply half of Australia’s medicinal cannabis needs by 2028. It predicts it could contribute up to $90 million to the state’s economy.

Victorian medicinal cannabis company Cann Group has also predicted there will be a global shortage of marijuana as more countries legalise the product and demand grows.

This theory is backed by Brendan Kennedy, the president of Canadian cannabis producer Tilray, who stated:

If you look at the number of countries that allow medical cannabis it’s about 30 today and I would expect that to grow to about 40 by the end of this year.’ 

It also seems that as the number of countries allowing medicinal cannabis use grows, so too will the legalisation of recreational use.

With Canada working towards legalising recreational marijuana this year, it joins countries like Russia, Italy, Switzerland, the Netherlands, and a growing number of US states.

Clearly, this is a market on the verge of exploding. And Australia is on the cusp of becoming a world leader.

The federal government’s new laws will likely come into effect at some point this month. And waiting on the frontline are a few Aussie pot companies poised to take advantage. If you can get in on these companies early, you could be a part of the ‘green rush’ Australia is set to experience.

To make the most of the incredible potential gains on the table from the rapidly expanding marijuana market, click here.

This week in Markets & Money:

On Monday, Shae noted that Russia’s gold holdings have increased every quarter for the past three years. Making them the 6th largest holder of gold in the world. And although gold isn’t at the centre of the market anymore, it still equals power — allowing Russia to bypass dependence on the US dollar. Aside from gold, Putin has another trick up his sleeve to leave the USD behind. And it involves something called a cryptoruble…

To read the full story, click here.

On Tuesday, Shae wasn’t worried about an impending market crash. Although the Dow Jones and S&P 500 fell 2.5% and 2.1% respectively last week, it was no cause for panic. Looking at the bigger picture, these daily price swings aren’t a sign of a correction. They’re merely a distraction from long-term wealth building opportunities. And as the Aussie market is unlikely to be impacted, the best course of action is to just ignore the noise.

For more on this story, click here.

On Wednesday, Shae was surprised by the severe drop the Aussie market experienced. The ASX 200 finished 3.2% lower on Tuesday, likely due to the US market’s 4% drop the day before. However, Shae believes this bumpy ride will only last for a short while, and that the US market’s bull run is far from over. However, closer to home, the RBA is still reluctant to raise interest rates. Which says a lot about the state of our economy…

To read the full story, click here.

On Thursday, Shae explained why the falling crypto price is good for investors. After news surfaced about the massive profit potential of crypto investing, the mainstream took hold of the trend. As a result, hordes of people piled into cryptos without knowing anything about them. But now that the price has dropped, the weak investors will be weeded out. Strengthening the value of cryptos overall and allowing them to reach their full potential.

For all the details on this story, click here.

On Friday, Shae looked back on what we learned from the global financial crisis. One of the key lessons was that Wall Street will do anything to make a profit. And it appears they still haven’t changed their ways. Shae believes that investment bankers are partly responsible for the US market’s drop this week. All thanks to their new scheme that makes money off the back of regular people…

To read the full story, click here.

Kind regards,

Katie Johnson,
Editor, Markets & Money

Katie Johnson

Katie Johnson

Katherine Johnson, usually going by just ‘Katie’, is a member of Port Phillip Publishing’s editorial team, as well as the Editor of the Saturday edition of Markets & Money.

Katie works with all of your editors to maintain the quality of their research and analysis. In her Saturday Markets & Money articles she specialises in cryptocurrency and technology stories, and brings you a recap of the week from your other Markets and Money editors.

Katie Johnson

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