How Cannabis Became COVID's Chief Mitigator
As COVID-19 relentlessly sweeps across the globe, business-as-usual has undergone a serious makeover. From going to the grocery store or clocking in at work, your life is undeniably different from the one you led three months ago.
The most profound effects of the Coronavirus are being felt at the global level, where the worldwide economy is at a near standstill. The situation of COVID-19 leaves many investors, entrepreneurs, wealth managers, and real estate professionals in an alarming bind. With so many industries caught in the crossfire, it's essential to search for a sector that's insulated from the adverse effects of the Coronavirus.
When it comes to COVID's chief mitigator, it's none other than cannabis. From prohibition to legalization, California is at the forefront of the cannabis industry. Read along to understand why the cannabis industry is one of the best investment opportunities in California.
Marijuana Is An Economic Driver
The current state of affairs of the global economy is bleak. With entire nations practicing social distancing and shutdowns to fight against COVID-19, job losses are at their all-time-highs — and climbing.
California has been spared of much of the chaos that was seen in New York, but the unemployment figures are shocking. California's unemployment currently stands at a whopping 15%. To use Governor Newsom's words, it's simply jaw-dropping. Adding salt to the wound, California's unemployment rate is predicted to move further over the 18% mark in the coming weeks.
Although these numbers are terrifying, the cannabis industry is actually adding to the job market. The tally stood at nearly 300,000 filled positions in the cannabis industry on the national level. In the three years that cannabis jobs have been counted, each year shows significant increases.
With this in mind, the cannabis industry is one of the few sectors that shows stable growth that actually adds to the economy. A primary reason why the cannabis industry is booming is not only because of the slight majority of adults use it, but because it overlaps a multitude of industries.
The cannabis industry intertwines with agriculture, law, investment and wealth management, technology, pharmaceuticals, retail, real estate, and more.
Aside from adding jobs to California's market, the cannabis industry also adds to California's state and local tax revenue, a true bright spot and predictable, statewide tax revenue source.
The Cannabis Industry's Growing Demand
Although Californians are paying a premium for legal cannabis — they buy more year after year. At the beginning of 2020, Californians were already buying 70% more cannabis products from January to the beginning of March when compared with data from 2019.
However, once the COVID-19 shutdowns began, legal cannabis sales skyrocketed 159% compared to 2019 cannabis sales data. Although all cannabis dispensaries were closed to walk-ins, they were open for pickup and delivery.
Lastly, the numbers don't lie about the growing demand for cannabis products in California. According to analysts, $2.5 billion was spent on retail cannabis in 2018. 2019 saw a 20% increase in legal sales, and analysts forecast that Californians will spend more than $5 billion by 2022.
With so much money being spent on legal cannabis in California, it's no wonder California is home to the world's largest cannabis industry.
How Can The Marijuana Industry Benefit You?
Whether you're a wealth manager, individual investor, real estate professional, or entrepreneur, you can benefit from the cannabis industry in many lucrative ways. Let’s take a look at how investing in the cannabis industry today can secure your financial future.
The Growing Need For Investment Capital
If there's one definite fact about the cannabis industry in California, it's that it's expensive to start a marijuana company. Regulators in California require a large sum of capital to secure permits, real estate, licensing, and more.
Even if you qualify for a significant loan, it’s unlikely that you’ll receive it to start a cannabis-based business. The federal government still classifies marijuana as a Schedule I drug, so you won’t find a bank that can legally lend you capital.
Although it may seem as though your hands are tied, you have another option. Venture capital firms that specialize in the cannabis industry are here for this exact scenario.
If you're a cannabis entrepreneur that's ready to start a cannabis business, you can borrow capital from an investment firm that works within the cannabis industry.
If you're an investor, you're in a unique position to invest in start-up cannabis companies, real estate loans, and even international cannabis-based businesses. Teaming up with a cannabis investment firm can unlock the doors to countless opportunities that would have otherwise gone unnoticed.
A Booming Time For Real Estate Professionals
Real estate professionals are experiencing a boom in the cannabis industry. Properties for cultivation, testing facilities, extraction facilities, dispensaries, and more, all need commercial real estate space as well as private party financing.
As the demand for cannabis products increases, so does the value of commercial and retail-based properties. All cannabis-based companies must be zoned properly, which makes cannabis real estate finite. The result is sky-high price tags that do not appear ready to come back to Earth soon.
If you're a real estate professional, now is the time to focus on the cannabis industry in California. By partnering with a cannabis investment and advisory firm, real estate professionals will gain an entirely new network of clients eager to lease or acquire compliant, cannabis real estate assets.
The Cannabis Industry is Essential For Your Portfolio
The most landmark moment in the history of cannabis happened in March 2020. California was the first state in the United States to order a statewide lockdown and keep only essential businesses open. Hospitals, pharmacies, grocery stores, and cannabis dispensaries were all deemed necessary. This act alone foreshadows the influence and impact cannabis has on the state and its citizens.
If you've been waiting for the most legitimizing aspect of the cannabis industry - this was it.
Cannabis stocks have since rallied, but not all of them are headed for the stars. Finding the best cannabis stock to invest in isn’t a simple task. Unless you’re ready to dig deep and do the due diligence necessary, it’s best to find the safest cannabis investment with a leading cannabis investment firm.
Direct investment in specific, local operations--oftentimes with collateral as a safety lever--allow investors to participate with more controls and predictable outcomes.
where goldstalk comes in
Whether you're searching for a direct investment opportunity that's primed for growth or need to source capital to fund your legal marijuana business, Goldstalk is ready to provide suitable solutions.
As a leading cannabis investment and advisory firm in California, Goldstalk offers underwritten and vetted investment opportunities. Goldstalk sources cannabis investments rigorously and thoroughly reviewed by internal underwriting teams to ensure due diligence and performance.
With decades of cumulative experience, Goldstalk enjoys a wide reach in the industry with many successes, despite the current economic uncertainty as well as the many uncertainties that were inherent in the industry. Goldstalk and the cannabis industry have navigated this unusual and uncertain COVID-19 environment.
If you're ready to inject capital into the cannabis industry or desire a quote for capital, then schedule a call with Goldstalk to realize your portfolio's true potential.