There is little question that cannabidiol or CBD products have taken off since the passage of the 2018 Farm Bill. It’s little wonder that investing in CBD has risen to new heights. As a new market, the opportunities are considerable. For many CBD edibles, oils, CBD vape oils, and other products offer real profit-making potential.
But is investing in CBD the best course of action? And if so, are there ways to minimize the risk involved? These are important questions because even with a new, growing market there are possible pitfalls that may rob you of success.
What is CBD?
Also known as cannabidiol, CBD is a compound that is found in cannabis and industrial hemp. CBD should not be confused with THC, which is the psychotropic compound in marijuana that gets you “high”. Instead, CBD offers mild properties that tend to create feelings of relaxation while having physical effects such as lowering inflammation.
Although CBD is not nearly as regulated as products with THC, it should be noted that CBD is not fully legal in all 50 states. Before investing, you will need to check with your local and state laws that govern CBD.
Why CBD Seems Like a Good Investment?
There is considerable potential in the CBD marketplace even after the explosion of growth over the past couple of years. With the legalization of marijuana products expected at the federal level soon, the remaining restrictions on CBD will most likely fall away. Estimates are that by 2024, over 2/3rds of all CBD spending will occur in retail stores CBD vape oils.
Of the many reasons why CBD is considered a good investment, its growth potential is arguably the most compelling. With CBD dispensaries popping up around the country in towns both large and small, the rapid growth is a good sign of its potential.
Wide Range of Products:
If it seems that CBD is being infused into virtually every food, cream, and many other products, there is a good reason. CBD itself does not affect the taste or consistency to any great degree. This translates into being available in a wide range of products which is only good for investing.
Celebrity Endorsements: Although endorsements and even investments by celebrities are no guarantees of success, it is the growing number of endorsements that show positive signs. If celebrities are investing, it means that their financial advisors are telling them to do so. This means that they see the overall potential of CBD and want to get in now.
Growing Acceptance: While the stigma attached to marijuana and THC is still present, it is quickly falling away from CBD. As more people become educated about the true nature of CBD, it is becoming more acceptable to the general public. CBD is not a psychotropic compound, it is not addictive, and it offers positive effects which can benefit many people.
Investing in CBD today is generally considered a smart course of action. The growth in the marketplace is still considerable. Plus, with the expansion of CBD edibles, oils, vapes, and other products, the sky seems to be the limit on its reach. However, you will still need to take precautions before you make your first investment into the CBD market.