Are investors sticking with the traditional safe bet gold, up-and-coming battery metals or the risky newcomer on the scene Marijuana? Ahead of the panel debate at the 2019 Mining Indaba, we’ve looked at some of the main arguments around each.
Canada took the world by surprise at the beginning of October by announcing the legalisation of Cannabis for recreational use, a controversial yet historic move aiming to wipe out the black market of Marijuana and reduce criminal activity. While this has been seen with scepticism by medical professionals, its great news for entrepreneurs and investors. Since the announcement, many stores have run out of stock and demand has rocketed. Canadians consumed roughly 773 tonnes of Cannabis in 2017, a number that’s sure to increase following the legalisation due to ease of access.
As the first major Western society to legalise Cannabis for recreational use, the question now remains whether other countries will follow. If so, investing in marijuana stocks could be a very lucrative move. However what would this mean for the exploration industry, with traditional risk capital speculating on the nascent marijuana industry rather than the next discovery? Will Marijuana stocks replicate the unstable price swings of Bitcoin before it, another bubble threatening to burst?
Main points
- Gold: down for now, but ready for a comeback in 2019?
- Battery metals: booming demand from the EV sector, exploration companies are investing in new projects.
- Marijuana: Could Canada start a trend of legalising Cannabis? If so, Marijuana stocks might be the ones to watch in 2019.
Hear more on this topic next February at Mining Indaba. Register online today to secure the best rate.
Disclaimer: this article is intended to be used for informational purposes only and all data is publicly available online. We are not an investment advisor; if you wish to invest we suggest you conduct your own research and speak to an independent financial advisor.
