The Cost Of A Rocky Mountain High Is Getting Lower

Now that Colorado is in its second year with a legalized marijuana trade, the industry is on the rise as new products, growers and dispensaries flourish. With this market growth has come a surprising downward trend in marijuana prices, according to a new

by Convergex.

The survey showed that pot prices in Colorado have fallen by up to 40 percent over the past year. An eighth of an ounce of the stuff now costs between $30 and $45, compared to last June when average prices were between $50 and $60.

One major cause of the price decrease has been the market's rapid expansion. During the first year, only a limited number of dispensaries were authorized to sell the drug. However with 18 months of pot sales under its belt, Colorado has increased the number of dispensary licenses and thus, driven prices down.

The excitement surrounding legal pot has worn off considerably, leaving average consumers less likely to spend big bucks on marijuana. For that reason, the industry has to set prices at a manageable level that people will be willing to pay. Although the average consumer will likely spend less on buying pot, many expect Colorado's marijuana market to flourish in the coming years as the flow of customers is only seen growing.

Colorado residents will soon find it even cheaper to buy marijuana as the state struggles find an appropriate tax level for the drug. After last year's tax surplus, the government is planning to reduce the state's marijuana sales tax from 10 percent to 8 percent in September. The tax cut will kick off on September 17; after a one day tax holiday on September 16 which will allow residents to purchase marijuana tax free.