Why Shares of First Majestic Are Losing Luster Today
Key Points
First Majestic Silver is an industry-leading silver producer.
The price of silver is plunging today, contributing to a drop in First Majestic's stock price.
For silver investors, the stock's pullback provides a great buying opportunity.
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While the prices of precious metals have soared recently (about 40% year to date), gravity is taking effect as investors turn away from gold and silver today. As of this writing, the price of silver is down nearly 7%; consequently, First Majestic Silver (NYSE: AG), a leading silver producer, is seeing its stock sink lower.
As of 10:30 a.m. ET, shares of First Majestic are down 11.4%
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Digging into the drop in First Majestic stock
While First Majestic has exposure to other metals, such as gold, lead, and zinc, it's silver that makes up the lion's share of the company's revenue. Through the first half of 2025, for example, silver production represented 55% of the company's sales. Because there's a high correlation between the movements of metals prices and the companies that produce those metals, the decline in First Majestic stock today is unsurprising.
As disheartening as the drop in First Majestic stock may be, savvy precious metals investors know that enduring dips in metals prices is part and parcel of investing in metals.
Although smaller companies may struggle with the plunging price of silver, First Majestic is an industry stalwart that recently reported a company record for first-half-of-the-year cash from operating activities: $225 million through the first two quarters of 2025.
There's a silver lining to the metal's plunging price
For investors who are looking for concentrated silver exposure, First Majestic is an excellent choice, considering it generates a higher percentage of revenue from silver production than its peers, and today's pullback represents a great buying opportunity. Of course, for those who want to mitigate the risk of investing in an individual company, a silver exchange-traded fund (ETF) is another great route to adding some glitter to one's portfolio.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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