(Kitco News) – While investors have dumped gold and ran to cash as the financial calamity from COVID-19 unfolds, cannabis sales are on the rise.
Cannabis sales tracker, Headset, reported last week that many markets have seen inventory declines.
In pre-COVID-19 State of California, Headset reported that marijuana shops had 4.7 week of inventory on hand. As of Friday inventory dropped to 3.3 weeks of supply.
“In Canada (looking at private retail in BC and AB) we find that inventory levels are also rapidly declining with average inventory coverage at about 5.8 weeks pre-crisis and 3.1 today. With hard to find Edibles and Beverages being the most likely to see inventory depletions,” writes Headset.
The only market where inventories have run up is Nevada. Headset speculates that lack of tourists in Las Vegas has depleted sales.
On the other hand, gold hit a high of $1,679 an ounce earlier in March, but with news of the pandemic raging, the precious metal has dropped well into the $1,500 ounce range with investors dashing for cash. Money managers slashed their net-bullish positioning in gold futures to the lowest level since last summer during the most recent reporting week for data compiled by the Commodity Futures Trading Commission (CFTC).
Cannabis had a dizzying climb two years ago, sucking capital and attention away from junior miners before the bottom fell out of the market.
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