Gold and Silver Price Fluctuations Impact Mining Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Surge in Gold and Silver Prices: Over the past year, gold has risen approximately 95% and silver has soared over 270%, making them the largest assets globally by market value, reflecting strong investor demand for safe-haven assets.
- Increased Market Concerns: Fears over U.S. fiscal sustainability and Federal Reserve independence have driven gold and silver prices higher, with silver's monthly gain of around 65% marking its largest increase since 1864, indicating market sensitivity to monetary system pressures.
- Mining Stocks Decline Reasons: Despite rising gold and silver prices, mining stocks like Newmont (NEM) are retreating due to fixed cost pressures, where each dollar decline in metal prices disproportionately squeezes margins, impacting cash flow and earnings expectations.
- Changing Trader Behavior: As traders may be unwinding leveraged positions on Thursday, outflows from commodity ETFs have intensified selling pressure on mining stocks, leading to greater market strain on these companies despite relatively stable metal prices.
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Analyst Views on AG
Wall Street analysts forecast AG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AG is 15.06 USD with a low forecast of 12.50 USD and a high forecast of 17.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 26.230
Low
12.50
Averages
15.06
High
17.50
Current: 26.230
Low
12.50
Averages
15.06
High
17.50
About AG
First Majestic Silver Corp. is a mining company. The Company is focused on silver and gold production in Mexico and the United States. It owns and operates approximately 350,000 hectares of land package, which include the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, and a 70% joint venture interest in the Cerro Los Gatos Silver Mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, United States. The San Dimas Silver/Gold Mine is located over 130 kilometers (km) northwest of the city of Durango, Durango State, Mexico. The Santa Elena Silver/Gold Mine is located over 150 km northeast of the city of Hermosillo, Sonora, Mexico. The La Encantada Silver Mine is an underground mine located in the northern Mexico State of Coahuila, 708 km northeast of Torreon. The Cerro Los Gatos Mine is located around 120 kms south of Chihuahua City, Mexico.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surging Silver Prices: Since the beginning of 2025, the iShares Silver Trust (SLV) has skyrocketed by 280%, leading to a remarkable 364% increase for silver miners like First Majestic (AG), indicating strong market demand and investor confidence.
- Rising Industrial Demand: First Majestic reported a 33% increase in industrial silver demand since 2020, with expectations of double-digit growth in the coming years due to its applications in chips and electric vehicles, further driving the company's performance.
- Resource Expansion: The company acquired a 70% stake in the Cerra Los Gatos Mine through its acquisition of Gatos Silver, which is expected to contribute 2.1 million silver equivalent ounces, significantly enhancing future production capacity and revenue potential.
- Improved Profitability: In Q3, First Majestic reported mine operating earnings of $99 million, driven by increased silver production and a 31% rise in the average realized silver price, demonstrating the company's enhanced profitability in the context of rising silver prices.
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