“In Europe, drugs are less expensive than beer or café,” says a headline article in La Nacion. “An ecstasy pill costs the same as a glass of beer,” the article explains. “A line of cocaine is less than a cup of coffee.”
Everything else may be going up. But there’s a major deflation in drug prices. Marijuana is down 12% in the last five years. Heroin prices are off 45%. Amphetamines have gone down 20%.
Globalisation. Better supply chain management. More competition and across-border movement.
Interestingly, this report comes from Reuter’s today: “Marijuana top U.S. cash crop.”
“U.S. growers produce nearly $35 billion worth of marijuana annually, making the illegal drug the country’s largest cash crop, bigger than corn and wheat combined, an advocate of medical marijuana use said in a study released on Monday.”
Probably not something that will be added to the commodities market anytime soon…