Investing in the Cannabis and Hemp Industries
We are in a time of change. In 2019, more than 30 states have legalized the use of medical marijuana, and while that number is growing steadily, only 11 of those states currently allow the legal recreational use of cannabis. Furthermore, hemp was legalized at the national level in December 2018. With the change in state laws fast approaching, the CBD market is expected to be a $22 billion market by 2022 .
At Goldenseed, we don't profess to be stock experts, but we see this as a turning point for cannabis products entering the market—and where there’s demand, there will always be supply.
You can already see the effect of California’s legalization in increased product offerings for cannabis and hemp. From formats that extend beyond flowers, edibles and vape cartridges, to skincare products, nasal sprays, lozenges and more. We believe the hemp plant alone is a valuable and relatively untapped resource that could revolutionize how humans live on this planet, so the imperative for farmers to grow marijuana and hemp is increasing.
But for this growing economy to survive, the right education is crucial, and Goldenseed works hard to make sure that everything we do is compliant, transparent, clear, and simple—with a focus for positive change.
So, if you’re considering investing in a cannabis or hemp business, it’s important to remember that this is still an industry in its infancy. Not all companies have broken even, let alone started turning profit. Some have not even produced revenue, or taken a product to market. You should study each company carefully, ask questions, and rely on your advisors before you invest in any cannabis or hemp venture. Remember: all investments are risky, and you could lose your entire investment. So do your research, and be sure the risk is right for you.
As with being an early investor in any industry, the goal is to “buy low and sell high.” While legalization of cannabis and hemp is growing state-by-state, it’s still illegal to sell cannabis products under U.S. federal law. As a result, any investment into a cannabis company in the U.S. is inherently risky. Many cultivators, distributors, and others like Goldenseed, have spent a great deal of money, time, and energy to attempt to be in strict compliance with their state and local laws. The owners of these pioneering establishments are taking risks while federal laws are in place. They believe the old saying: where there’s huge risk, there’s huge reward.