How Cannabis is Changing the Global Market

[dropcap class=”kp-dropcap”]T[/dropcap]he financial crisis in China is having an unexpected affect on the cannabis industry. China is the world’s top consumer of industrial metals; however, the rising price of metal in the country is making the trade of industrial mining unprofitable. In contrast, the cannabis industry is unique considering the fact that it’s virtually unscathed by the Chinese business market. As such, several international companies are turning from foreign mining to the cannabis “gold rush.”

Reuters recently reported on several companies that have already made the switch. Supreme Pharmaceuticals has abandoned its gold and copper mining operations in western Canada and is seeking a license to grow medical cannabis. The company has since purchased a greenhouse operation in Ontario. Similarly, Erin Resources in Australia is dropping gold mining in Senegal for cannabis pursuits. While International Goldfields is moving from gold to medical cannabis investment overseas.

The Chinese economy is the second largest economy in the world and it inevitably affects many. A recent report by ArcView Market Research claims that the cannabis industry is the fastest-growing industry in the nation. The report estimates the cannabis industry would be larger than the organic food industry if cannabis were legalized in all states. It’s a no-brainer for a financial escape plan.

The reasoning is simple. The cannabis industry is growing rapidly as the global metal industry is slowing down. Prices for gold, copper, iron ore and coal have collapsed. For instance, the copper industry shrunk 22% in 2015. Subsequently, smaller players cannot handle the changes happening to the mining market.

However, all is not lost. If the cannabis industry can save the economy in Colorado and other legal states, who’s to say it won’t offer a nudge in reviving the international market as well?