Colorado Starts Selling Pot for Recreational Use

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Dec. 31 (Bloomberg) –- Medical Marijuana Industry’s Michael Elliott discusses Colorado selling Marijuana for recreational purposes starting on January 1st and how they may run out due to demand with Matt Miller and Julie Hyman on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

First day, well, there are going to be a lot of unhappy marijuana enthusiast.

Michael elliott is the executive director of the medical marijuana industry group and he can tell us how colorado is bracing for demand.

It is not just people who want to use it for fun, michael.

Some people insist they need it, right?

That is absolutely right.

We have an excellent medical marijuana program here in colorado.

We have 1000 cancer patients, any number of people who say they are able to be alive because of using marijuana as a medicine.

Michael, is it going to run out?

Do you have enough apply to meet the demand that may come with recreational use?

It is hard to know.

My feeling is we will run out.

All of the marijuana sold through the retail businesses have to be grown by the same businesses.

Our closed loop system in colorado to block out the black market.

What that means in the short- term, it probably will be closer to 30 or 40 businesses opening across the state.

It is a very limited supply.

As time goes on, more businesses will be opening up and that supply will grow.

But on january 1 here, i think we are probably going to have probably a lot more demand than supply.

It sounds like despite the legalization that the black market for marijuana probably is alive and well, at least as long as you have the supply issue and colorado?

There are steal you -- there are still dealers?

Yes, of course.

Of course the black market is still there.

But we have a lot of evidence showing we have taken a pretty big bite out of the black market here.

It is frustrating that in the short term here there probably will be a supply shortage.

But really i think it is a testament to how good our program is, because we have state and local licensing and with that comes a ground checks, requirements.

In denver specifically every business has to go through a public hearing with the neighbors.

And then five inspections from the fire department, the building department, zoning, and many regulations on packaging, labeling, tracking.

Michael, it is supply will be outstripped by -- if supply will be outstripped by demand, surely the legal outlets will be raising the price.

If you are sitting on barrels, or you will move that along for a lower price, no?

I think that is a likely problem.

Consumers will be willing to pay a higher price, one for availability, and also for the safety aspect we are bringing to the table.

Here we have averaging and labeling.

There are certain pesticides.

We have very strict regulations on what can be used to grow the plants.

So, molds, mildew's, issues that have been rampant in the market where people do not know what they are consuming, these are issues we are in the process of solving to guarantee consumer safety.

Michael, is there no price control where it is being sold legally?

I don't know of any price control.

But, you know, i think the rice is will go up -- i imagine the prices will go up in the short term.

For medical marijuana, the prices have been as low for medical marijuana as i think they can get.

A decade ago it was probably $50 for an eight here, where it has been $20 to $25. we will just have to see.

There is one thing that we have not mentioned.

The poll in colorado can grow their own marijuana at home if they what.

Is there any data on how many people are taking advantage of that?

That's a tough one.

That aspect of it -- people can do that, but there is an awful lot of safety concerns that come with that as well.

It is not as easy as distilling your own beer.

-- it is about as easy as distilling your own beer.

In other words, it is not very easy at all.

There's a public education aspect.

You can come to one of these businesses and purchase -- one of the licensed businesses, which there is only a few.

It remains illegal to drive impaired, to take it out of state found -- to take it out of

This text has been automatically generated. It may not be 100% accurate.

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