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A strand the was grown in the mountains in Mexico had a yellow color rather than the green color of most Mexican weed. This "gold" color could also be found in Columbia weed. The best guess is the nearest thing in Mexico that Americans would recognize was the then popular tourist destination of Acapulco. Hence the moniker.

We had a songs: No stems, no seeds that you don't need. Acapulco Gold is bad weed.

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Q: Why is marijuana called Acapulco Gold?
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