Marijuana stocks can offer explosive returns, and we've seen gains as high as 523% from small pot startups. But the potential keeps growing…

Full medical marijuana legalization in the United States is a "when" and not "if" question, but we understand not every investor is comfortable with buying shares in companies that grow and sell cannabis.

Fortunately, there's another option. You can also invest in "pick-and-shovel" plays in the $10 billion cannabis industry.

During the California Gold Rush of 1848, 300,000 people went to the Golden State seeking their fortune.

However, savvy businesspeople knew there was also money to be made in selling the goods (picks, shovels, clothes) needed to dig for gold.

There was only a small chance of striking it rich by digging for gold, but every miner needed these basic resources.

One such seller was Levi Strauss of Levi's jeans fame. He started making durable trousers for miners in 1853.

He died in 1902 with a net worth of $6 million. In 2017, that would have been worth $169 million. He struck it rich without mining even an ounce of gold.

Renegade Investment Expert: "It's time to double down – or even triple down – on your cannabis investments!" Read more…

That's why I want to show you how to do the same thing in the legal marijuana business.

Today, I'm sharing insights from cannabis insiders on the best pick-and-shovel plays in the market.

Like Strauss, finding the right idea could lead to your own fortune…

The Best Plays on the Marijuana Industry

Most of the experts I spoke with have their eyes on the devices cannabis users will buy to smoke marijuana.

Cannabis hardware is the pick-and-shovel play to consider…

Wil Ralston, President of SinglePoint Inc. (OTCMKTS: SING), a publicly-traded cannabis and technology holding company specializing in acquisitions of small- to mid-sized companies with an emphasis on mobile technologies and emerging markets:

"Ancillary cannabis products are synonymous with the pick-and-shovel reference of the Gold Rush. When looking for a company supplying ancillary services, it's good to look for one that is supplying consumables (like nutrients, soils), or something that may have a lifetime to it and need reordering (like lighting, vape accessories, etc.). Another key ancillary opportunity is in the technology space. Think marketing, data, and payment technologies. The cannabis market is currently very regulated with the number of stores allowed to operate, so finding a business that can continue to sell their products and services into stores is key so that it is not just a one-time purchase."

Pantelis Ataliotis, President of Dr. Dabber, a vaporizer company that has produced the first portable electronic rig, the Boost:

"Those who are wary of entering the cannabis market while it is still federally illegal still have several ancillary options to ease into. The vaporizer market has been growing at an astounding rate and doesn't look like it's slowing down. The ease of use and accessibility aspects of vaporizers appeal to a massive demographic, and since vaporizer companies do not actually sell cannabis, we are exempt from most of the red tape. We classify ourselves as an electronics company. We are no different than someone making Bluetooth speakers or phone chargers."

Brett Stevens, CEO of Fohse Inc., an engineering and automation firm with its focus set on keeping cannabis cultivators on the cutting edge of horticultural technology:

"The cannabis industry is such a new space; there is so much new innovation happening right now. If I was putting money in ancillary businesses, I would certainly look toward these new innovations. I would look for a position in a company that produces something the production facility will always need, such as lights or automated systems."

Mike Bologna, CEO of Green Lion Partners, a Denver-based business strategy firm focused on early-stage development among firms in the cannabis industry.

"When investing in ancillary products, both hardware (like vaporizers or processing equipment) and software solutions (like ERP or distribution platforms) offer the opportunity for rapid scaling and clear paths to exit. When compared to licensed opportunities like cultivation or cannabis retail, these types of investments are less prone to the volatility of regulation and commoditization of the plant itself."

This was great advice, and I'm glad I was able to provide Money Morning readers with exclusive insight from top executives in the marijuana industry.

In "Part 2" next week, I'm also going to share what three other experts had to say, so check your inbox on Tuesday, July 17.

Write that down on your calendar.

But if you want to skip the picks and shovels and invest directly into the explosive marijuana industry, there's no better time to do it…

We've Seen This Pattern Before (and It's Made People Rich Beyond Their Wildest Dreams)