A few days ago Bloomberg News reported that prices at recreational pot shops in Washington state have dropped by as much as 40%.
Then and now
Initial prices for recreational marijuana in Washington were quite high. This was due to multilevel taxation and supply shortages. Since then the state has licensed additional growers and processors and prices now average about $15 per gram compared to the $25 per gram rate of July 2014.
While there are still price challenges, due to what is effectively a 44% tax, this is a big step in the right direction. To complete with the black market, recreational marijuana prices need to be competitive. With black market marijuana grams being sold for $10 we are not quite there yet.
There is no intrinsic reason for pot to cost 25 times the cost of the precious metal, silver. The only thing that makes marijuana expensive is its scarcity. In the coming years, as growers compete more intensely and more and more people cultivate legally at home, we will see marijuana being sold at prices far, far below the prices we see on the black market. I envision a day, in the near future, when ounces of good quality, recreational pot will be routinely sold for $50.