The valuation of cocaine is measured by both purity and price. For example, 1 gram of pure cocaine at $100 is most certain a better value than 1 gram of 50% pure cocaine at $75. The best way to create a unique system of valuation of cocaine through the years is pose a hypothetical situation where an individual would have to purchase a specifice amount of cocaine until that person has obtained exactly one gram of pure cocaine. Consequently, if this individual was buying 50% pure cocaine at $75 a gram, the 'expected price of a pure gram of cocaine' would cost $150. The logic is simple, its math, even simpler. In order to maintain relevancy, all pricing is fixed to 2003 U.S. dollars.

The top and darkest curve represents the expected pricing of cocaine, based on seizures of less than 2 grams. The middle curve represents pricing, based on seizures varying from 2 to 10 grams. The third curve is representative of seizures varying from 10 to 50 grams.

Initial viewing draws two possible and equally likely explanations, Seizures of larger amounts of cocaine come from bulk, or large-volume sales, while smaller amounts come from street level, or retail sales. Clearly, discounted volume pricing may be a factor. An additional factor is that as cocaine gets passed along the supply chain, the product becomes increasing adulterated, in order to inflate apparent volumes.

However, the math behind generating this graph (available in the tables) indicates that both factors are at play, simultaneously.

Explainations aside, the results of this graph are so egregiously obvious, that no sources of error could possibly have caused the inevitable conclusion. The reader must be reminded that this data comes from the United State Office of Drug Control Policy, as prescribed by the Department of Justice.

Ignore the volatile spikes and dips in the trends. Retail cocaine during the first several quarters of 1981 and 1982 clearly show some average hovering around $550, when adjusted for inflation. Using the same methods of weighted exponential smoothing, we can confidently say that valuation of the most recently available data suggest a pricing at just over $100.

Bulk seizures of cocaine are one level removed from the inherent volatility of street retail and adulteration, so the second and third curves display increased smoothness. Again, if we are to use the same precautionary steps in analysis, there is much confidence in stating that both the latter trends began the 1980's at above $300, but are now less than $100, with the third line hovering around the $50 mark.

This graph is generated from neither misleading nor deceitful data. The data used comes from the United States Goverment. After more than two decades, the values of cocaine at local levels are MORE THAN FIVE TIMES CHEAPER. Whether this conclusion is due to the actions of the ' War on Drugs ' cannot be determined by this graph, as such possible conjectures were not part of its purposes.

Source: Price and Purity of Illicit Drugs, pg. A2-A4 - published by ONDCP