Surge in Precious Metals Prices Benefits Silver Mining Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
- Surge in Silver Prices: The iShares Silver Trust has surged 160% over the past year, driven by geopolitical tensions and industrial demand, attracting investors to the silver market, with expectations of this trend continuing into 2026.
- First Majestic Silver: This company operates mines in Mexico and the U.S., and last year acquired Gatos Silver, gaining a 70% interest in the high-grade Los Gatos mine, with 57% of its revenue from silver, positioning it as a top pure-play silver miner, where rising silver prices will directly enhance its profits.
- Wheaton Precious Metals: Acting as a financier, Wheaton uses a streaming model to provide upfront capital to mining companies, securing the right to purchase metals at a discount; its average cash cost of silver was $6.35 per ounce in Q3, ensuring cost predictability and protection against inflationary pressures.
- Investment Choices: Investing in First Majestic indicates confidence in its cost management and silver price upside, while Wheaton offers conservative investors a way to gain mining profits through a diversified portfolio without direct operational costs.
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Analyst Views on AG
Wall Street analysts forecast AG stock price to fall
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 21.590
Low
12.50
Averages
15.06
High
17.50
Current: 21.590
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.
Surge in Precious Metals Prices Benefits Silver Mining Stocks
- Surge in Silver Prices: The iShares Silver Trust has surged 160% over the past year, driven by geopolitical tensions and industrial demand, attracting investors to the silver market, with expectations of this trend continuing into 2026.
- First Majestic Silver: This company operates mines in Mexico and the U.S., and last year acquired Gatos Silver, gaining a 70% interest in the high-grade Los Gatos mine, with 57% of its revenue from silver, positioning it as a top pure-play silver miner, where rising silver prices will directly enhance its profits.
- Wheaton Precious Metals: Acting as a financier, Wheaton uses a streaming model to provide upfront capital to mining companies, securing the right to purchase metals at a discount; its average cash cost of silver was $6.35 per ounce in Q3, ensuring cost predictability and protection against inflationary pressures.
- Investment Choices: Investing in First Majestic indicates confidence in its cost management and silver price upside, while Wheaton offers conservative investors a way to gain mining profits through a diversified portfolio without direct operational costs.
See More
Surge in Precious Metal Prices Creates Investment Opportunities
- Surge in Silver Prices: Over the past year, the iShares Silver Trust has surged by 160%, driven by geopolitical tensions and industrial demand, attracting a significant influx of investors into the silver market, with this trend expected to persist until 2026.
- Supply-Demand Imbalance: For the past five years, demand for silver has consistently outpaced supply, leading to a multi-year shortage, which is likely to further drive up silver prices and create investment opportunities for silver mining stocks.
- First Majestic Silver: First Majestic Silver acquired a 70% interest in the Los Gatos mine in Mexico through its acquisition of Gatos Silver, with 57% of its revenue derived from silver, positioning it as a top pure-play silver miner; however, its profitability is highly dependent on silver price fluctuations, and any drop in silver prices or rise in mining costs could quickly erode profit margins.
- Wheaton Precious Metals Model: Wheaton Precious Metals operates under a financing model, providing upfront payments to mining companies for building or expanding mines, with an average cash cost of silver at $6.35 per ounce in Q3, offering cost predictability and protection against inflationary pressures, making it suitable for conservative investors seeking low-risk exposure.
See More
Surge in Silver Prices Creates Investment Opportunities
- Surge in Silver Prices: Amid geopolitical tensions and rising industrial demand, silver prices have surged 160% over the past year, creating significant investment opportunities, particularly in silver mining stocks.
- Supply-Demand Imbalance: Over the past five years, demand for silver has consistently outpaced supply, and this shortage is expected to persist until 2026, enhancing the attractiveness of silver investments, especially in the context of increasing global economic uncertainty.
- First Majestic's Leverage: First Majestic Silver's acquisition of a 70% stake in the Los Gatos mine through Gatos Silver positions it as a high-leverage silver investment, with 57% of its revenue derived from silver, although its profits are also vulnerable to fluctuations in silver prices.
- Wheaton's Financing Model: Wheaton Precious Metals operates under a streaming model, providing upfront payments to mining companies, with an average cash cost of $6.35 per ounce, offering investors a more stable return opportunity, making it suitable for conservative investors seeking lower-risk exposure to silver.
See More
Silver Prices Surge 6.6% Amid Strong Gold Demand
- Silver Price Surge: April silver futures rose 6.6% to $86 an ounce, reflecting a significant increase in market demand for silver ahead of the Lunar New Year, which boosted mining stocks.
- Gold Price Recovery: Spot gold prices increased by 1.8% to $5,113.6 per ounce, surpassing the $5,000 mark, indicating strong investor demand for gold, particularly as the Chinese New Year approaches.
- Weak Dollar Impact: The DXY index dipped 0.2% to 96.3, with the weaker dollar providing support for gold and silver prices, further enhancing the investment appeal of precious metals in the market.
- Mining Stocks Performance: Silver mining companies First Majestic and Hecla Mining gained over 4% in pre-market trading, reflecting optimistic sentiment in the precious metals sector and investors' expectations for future price increases.
See More
First Majestic Silver Leads in Silver Revenue Among Peers
- Highest Silver Revenue: First Majestic Silver generated approximately 57% of its revenue from silver last year, the highest among its peers, demonstrating its strong competitive position in the silver market and solidifying its leadership role.
- Significant Investment Returns: An investment of $100 in First Majestic Silver a decade ago would now be worth over $610, reflecting an annualized return of nearly 20%, while the initiation of dividends in 2021 has further enhanced total returns for investors.
- Strategic Acquisitions Fuel Growth: The company's acquisition of Primero Mining in 2018 added the San Dimas mine, projected to produce 10.2 million ounces of silver equivalent by 2025, thereby enhancing its profitability during periods of rising silver prices.
- Outstanding Market Performance: First Majestic Silver has significantly increased shareholder value through its focused strategy on silver mining, allowing it to achieve substantial returns amid soaring silver prices, highlighting its unique advantages in the industry.
See More
Surging Silver Prices Propel First Majestic Silver's Growth
- Surging Silver Prices: Over the past year, silver prices have skyrocketed by more than 150%, and although there has been a recent dip, this trend has driven up First Majestic Silver's stock price, reflecting the company's strong performance in the precious metals market.
- Significant Investment Returns: An investment of $100 in First Majestic Silver a decade ago is now worth over $610, representing an annualized return of nearly 20%, and the initiation of dividends in 2021 has further enhanced total returns for investors.
- Successful Acquisition Strategy: The acquisition of Primero Mining in 2018 added the San Dimas mine to First Majestic's portfolio, which became its top silver-producing mine in 2025, producing 10.2 million ounces of silver equivalent, thereby boosting the company's production capacity.
- Market Expansion: The well-timed acquisition of Gatos Silver last year has further enhanced the company's ability to capitalize on rising silver prices, demonstrating the effectiveness of its strategy focused on acquiring silver mines and significantly increasing shareholder value.
See More
Surge in Precious Metals Prices Benefits Silver Mining Stocks
- Surge in Silver Prices: The iShares Silver Trust has surged 160% over the past year, driven by geopolitical tensions and industrial demand, attracting investors to the silver market, with expectations of this trend continuing into 2026.
- First Majestic Silver: This company operates mines in Mexico and the U.S., and last year acquired Gatos Silver, gaining a 70% interest in the high-grade Los Gatos mine, with 57% of its revenue from silver, positioning it as a top pure-play silver miner, where rising silver prices will directly enhance its profits.
- Wheaton Precious Metals: Acting as a financier, Wheaton uses a streaming model to provide upfront capital to mining companies, securing the right to purchase metals at a discount; its average cash cost of silver was $6.35 per ounce in Q3, ensuring cost predictability and protection against inflationary pressures.
- Investment Choices: Investing in First Majestic indicates confidence in its cost management and silver price upside, while Wheaton offers conservative investors a way to gain mining profits through a diversified portfolio without direct operational costs.
See More
Surge in Precious Metal Prices Creates Investment Opportunities
- Surge in Silver Prices: Over the past year, the iShares Silver Trust has surged by 160%, driven by geopolitical tensions and industrial demand, attracting a significant influx of investors into the silver market, with this trend expected to persist until 2026.
- Supply-Demand Imbalance: For the past five years, demand for silver has consistently outpaced supply, leading to a multi-year shortage, which is likely to further drive up silver prices and create investment opportunities for silver mining stocks.
- First Majestic Silver: First Majestic Silver acquired a 70% interest in the Los Gatos mine in Mexico through its acquisition of Gatos Silver, with 57% of its revenue derived from silver, positioning it as a top pure-play silver miner; however, its profitability is highly dependent on silver price fluctuations, and any drop in silver prices or rise in mining costs could quickly erode profit margins.
- Wheaton Precious Metals Model: Wheaton Precious Metals operates under a financing model, providing upfront payments to mining companies for building or expanding mines, with an average cash cost of silver at $6.35 per ounce in Q3, offering cost predictability and protection against inflationary pressures, making it suitable for conservative investors seeking low-risk exposure.
See More
Surge in Silver Prices Creates Investment Opportunities
- Surge in Silver Prices: Amid geopolitical tensions and rising industrial demand, silver prices have surged 160% over the past year, creating significant investment opportunities, particularly in silver mining stocks.
- Supply-Demand Imbalance: Over the past five years, demand for silver has consistently outpaced supply, and this shortage is expected to persist until 2026, enhancing the attractiveness of silver investments, especially in the context of increasing global economic uncertainty.
- First Majestic's Leverage: First Majestic Silver's acquisition of a 70% stake in the Los Gatos mine through Gatos Silver positions it as a high-leverage silver investment, with 57% of its revenue derived from silver, although its profits are also vulnerable to fluctuations in silver prices.
- Wheaton's Financing Model: Wheaton Precious Metals operates under a streaming model, providing upfront payments to mining companies, with an average cash cost of $6.35 per ounce, offering investors a more stable return opportunity, making it suitable for conservative investors seeking lower-risk exposure to silver.
See More
Silver Prices Surge 6.6% Amid Strong Gold Demand
- Silver Price Surge: April silver futures rose 6.6% to $86 an ounce, reflecting a significant increase in market demand for silver ahead of the Lunar New Year, which boosted mining stocks.
- Gold Price Recovery: Spot gold prices increased by 1.8% to $5,113.6 per ounce, surpassing the $5,000 mark, indicating strong investor demand for gold, particularly as the Chinese New Year approaches.
- Weak Dollar Impact: The DXY index dipped 0.2% to 96.3, with the weaker dollar providing support for gold and silver prices, further enhancing the investment appeal of precious metals in the market.
- Mining Stocks Performance: Silver mining companies First Majestic and Hecla Mining gained over 4% in pre-market trading, reflecting optimistic sentiment in the precious metals sector and investors' expectations for future price increases.
See More
First Majestic Silver Leads in Silver Revenue Among Peers
- Highest Silver Revenue: First Majestic Silver generated approximately 57% of its revenue from silver last year, the highest among its peers, demonstrating its strong competitive position in the silver market and solidifying its leadership role.
- Significant Investment Returns: An investment of $100 in First Majestic Silver a decade ago would now be worth over $610, reflecting an annualized return of nearly 20%, while the initiation of dividends in 2021 has further enhanced total returns for investors.
- Strategic Acquisitions Fuel Growth: The company's acquisition of Primero Mining in 2018 added the San Dimas mine, projected to produce 10.2 million ounces of silver equivalent by 2025, thereby enhancing its profitability during periods of rising silver prices.
- Outstanding Market Performance: First Majestic Silver has significantly increased shareholder value through its focused strategy on silver mining, allowing it to achieve substantial returns amid soaring silver prices, highlighting its unique advantages in the industry.
See More
Surging Silver Prices Propel First Majestic Silver's Growth
- Surging Silver Prices: Over the past year, silver prices have skyrocketed by more than 150%, and although there has been a recent dip, this trend has driven up First Majestic Silver's stock price, reflecting the company's strong performance in the precious metals market.
- Significant Investment Returns: An investment of $100 in First Majestic Silver a decade ago is now worth over $610, representing an annualized return of nearly 20%, and the initiation of dividends in 2021 has further enhanced total returns for investors.
- Successful Acquisition Strategy: The acquisition of Primero Mining in 2018 added the San Dimas mine to First Majestic's portfolio, which became its top silver-producing mine in 2025, producing 10.2 million ounces of silver equivalent, thereby boosting the company's production capacity.
- Market Expansion: The well-timed acquisition of Gatos Silver last year has further enhanced the company's ability to capitalize on rising silver prices, demonstrating the effectiveness of its strategy focused on acquiring silver mines and significantly increasing shareholder value.
See More
