Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The interesting point about silver is that although it is a precious metal, and therefore a safe-haven investment, it is also an industrial metal due to its prevalent use in everyday items.
A variety of products, from cars to smartphones and iPads all require silver. Gold, in contrast, is more of a "pure" precious metal. This year gold has edged up slightly, but prices are still relatively weak as an improving global economy continues to reduce investor appetite for the metal.
Silver has largely tracked gold this year, perplexing many analysts who would expect the reason gold is under pressure an improving global economy would actually add some upside support to silver.
So far it has not. In the first quarter of earnings were a bit of a disappointment. Even though the most recent earnings showed declining revenue and profit, there were some strong metrics in the results that show the company makes a good investment even with low silver prices and a great investment for when prices recover. This AISC means First Majestic can profit even with the current price of silver and could survive with even lower silver prices.
Many silver miners are losing money at the current price. First Majestic is preparing itself for the future right now by decreasing costs and conserving cash after expanding its operations. Commenting in the recent earnings, CEO Keith Neumeyer said:. After three years of aggressive capital spending to build and expand four of our silver operations, the company is planning to take a short breather to focus on treasury growth and free cash flow.
However, given buying silver stocks online low silver price environment focusing on further cost reductions and treasury growth continues to be management's top priority.
The company's expansion has markedly helped production. To make the most money you need to buy in when prices are input type dropdown html5. We saw in the last economic cycle that when commodities prices rallied investors were willing to pay top dollar for miners. Those who bought First Majestic Stock in when the rally in silver prices was underway could forex trading society doubled their money if they buying silver stocks online at the peak.
Leia Klingel has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Leia is a commodities analyst and financial writer passionate about taking the intimidation factor out of commodities investing. She believes that too many investors are scared to put their money into commodities often because they are misinformed, and by ignoring the sector they are giving up the chance to profit in pretty much an macroeconomic environment.
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Personal Finance Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards. Jul 18, at 1: First Majestic Silver NYSE: Prev 1 2 3 4 Next. Motley Fool push notifications are finally here Allow push notifications to help you stay on top of Breaking investing news Earnings coverage Market movers Special offers and more Subscribe to notifications You can unsubscribe at any time.