As the legal and cultural landscape is changing at a fast rate, several companies are already taking advantage of the moment to research on how to use psilocybin (magic mushrooms) or lysergic acid diethylamide (LSD) for therapeutic and commercial purposes.
In this article, we’ll show you all you need to know about investing in psychedelics and how to get started.
Is it legal to invest in psychedelics?
In Canada, yes, it is legal to invest in psychedelics. But you have to do that in companies that are granted a legal exemption by the Minister of Health to possess and use psychedelics.
However, psychedelics are regulated under the Controlled Drugs and Substances Act (CDSA).
Both Psilocybin and Lysergic acid diethylamide (LSD) are both Schedule III controlled substances. This means that production, sale, import, export, and possession of drugs are prohibited.
The good part, however, is that the Minister of Health, under section 56 (1) of the CDSA, has the power to grant exemptions to these restrictions if it’s necessary for a research or medical purpose or benefits the public interest.
In 2002, The Minister of Health Granted exemptions that allow cancer patients to access psychedelics for end-of-life care. This made countless healthcare providers and companies to sought exemptions to use psychedelics to treat patients.
More so, as of August 2021, Health Canada considered revising its special Access Programme to allow the use of psychedelic drugs in psychotherapy.
However, there are still lots of doubts towards the medicinal acceptance and perhaps decriminalized possession of psychedelic drugs for personal use. That said, the use of psychedelics to treat various conditions is now a common trend all over the world.
Why are people showing interest in investing in psychedelics?
Although there is no sure bet, there is still great promise for psychedelic stocks. As more studies on magic mushrooms and LSD shows health benefits, including their effect for treating anxiety, depression, and addiction, they are gradually becoming a great replacement for traditional treatment methods.
Psychedelics represent an entirely new market, and this makes them exciting stocks for investors. There is great room for companies to grow, both in the medicinal use space and personal use market.
Besides, psychedelics offer a timely solution to the opioid epidemic that is becoming rampant in Canada and the world at large. This non-opioid treatment option offers an alternative solution to mental health and pain problems.
Some investors are excited for other reasons beyond the financial gains. Many believe psychedelics have the potential to play a key role in the treatment of psychological issues. They want to see these substances in the arsenal of professionals to combat chronic health ailments, thereby improving the lives of suffering patients.
How you can buy psychedelic stocks
Many companies are already dabbling into psychedelics, either mushroom (also called psilocybin) or LSD. So you can seize the opportunity to buy as much psychedelic stocks as you want.
Investing in psychedelic stocks is likened to investing in other types of stock. First, you need to open an account with a brokerage that gives a platform to buy and sell stocks. Next, you’ll need to deposit some funds to trade with.
After that, you can choose which psychedelic companies you would like to own. Conduct thorough research to make the best decision. In case you are not sure, you can consider purchasing a psychedelic ETF, such as Horizons Psychedelic Stock Index (PSYK) and Gen Altered Experience (PSY).
Decide how many shares you’d like to own. If you’re willing to invest $2000, and your chosen stock costs $20 per share, you can afford to buy 100 shares.
Execute the trade through your broker’s platform, and they will deduct the funds from your account. The share should appear soon.
However, always keep in mind that trading psychedelic stocks come with its own risks, and that’s just like other securities.
Don’t invest more than you can afford to lose. You can diversify your portfolio with different kinds of securities to reduce the risk of losing your savings.