Weed Sellers Keep Cash From Smelling as Sales Spike

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Jan. 6 (Bloomberg) -- Bloomberg’s Trish Regan examines the first days of legalized pot sales in Colorado on Bloomberg Television’s “In The Loop.”

Recreational purposes.

It had been for medicinal purposes and prices have doubled.

It is amazing.

The first of january, this new law took effect, which allowed people to buy marijuana for recreational purposes.

You did not need to have a doctor prescription.

You can go up and say, i will buy some and you can smoke it there in the privacy of your own home.

What has been amazing is what is done to prices.

The law of supply and demand.

Demand will go up.

Demand has gone up here you have seen lines just stretching out.

As a consequence, we have seen prices double.

It used to run about $200 before january 1 for a medicinal ounce of marijuana and it is now going or $400 an ounce.

For recreational use.

That includes point percent tax.

To your point, supply and demand.

I would argue over time, as this becomes more prevalent and as you remove the criminal element, and in other words, it is less risky to grow marijuana and sell marijuana, then how can you justify such a significant price?

Isn't this a commodity like any other?

The laws on supply?

Who supplies the pot?

That is where you would see the market reaction.

Farmers would plant more corn if there is not enough corn.

Can i go plant marijuana to take it vantage of this?

You could, but it is challenging because colorado has put in a whole host of laws that make it difficult for us if we wanted to suddenly open a pot growing shop.

It will hurt other states and put pressure on them.

If you are planning a ski trip and the question is, will i go to lake tahoe or park city, i do not know.

I'm not saying everybody.

There are people out there saying, i want to smoke some dubious.

-- doobies.

You have got a point.

There will be pressure on more and more states.

20 states all allowed medicinal marijuana.

Andrew cuomo saying he will take new york.

Here is the thing.

You wrote the book.

The almost legal marijuana industry.

You wrote it.

Thank you for the plug.

Do you have the cover of the book?

If you have the cover, show it.

There it is.

A lot of banks will not touch this thing and do not want to be associated.

It is a cash business.

Will the tax be collected?

This is a good point.

It is a cash business.

It is really interesting to see.

These people have to operate in cash.

They have been kicked out of bank account after bank account.

The minute the bank finds out what you are doing, you are done and you get kicked out.

They go through elaborate measures to hide what they are doing.

That includes what they do to protect the money.

It really cannot be dirty money.

You go in and buy your marijuana and they take your cash and the cash immediately gets moved.

These shots really smell.

My close would wreak when i walked out of them.

In a sealed an airtight room, so that it would not smell like marijuana.

Would you like to see marijuana become illegal in the state of new york?

We should make it legal and tax it.

It should be taxed federally.

Is that because we can put the money -- or because we are spending too much money trying to keep it at bay?

It is an expensive thing to keep it illegal.

It is.

It is estimated to be a $10 billion industry overall.

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


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