First Majestic Silver Corp (NYSE:AG)
Lately, times have been tough in the markets. With global economic conditions weighing, it can be difficult to make the right picks. However, when market and economic conditions are concerning, there are always at least a few stocks that skyrocket. This time around, First Majestic Silver Corp is one of them.
Today, we'll talk about why the stock is climbing, what we're seeing in the market today, and what we can expect to see from AG moving forward. So, let's get right to it...
Here's Why AG Is Climbing So High
When looking into any gains, the first thing that you need to know about a publicly traded company is what that company does. As the name First Majestic Silver would tell you, the company's flagship product is silver. They are focused on mining the commodity, preparing it, and getting it ready for sale.
With that said, there's a good reason that AG stock is climbing in the market at the moment. Like gold, silver has found its place in the safe haven world. This means that when market and economic conditions prove to be concerning, investors look to the precious metal as a way to keep the value in their assets. As a result, during these times, we see increased demand and ultimately big gains in price.
As a company that is focused entirely on silver, AG is heavily dependent on price movements in the precious metal. When silver heads upwards in price, the company makes more profit. Adversely, when silver is headed down, the company's profits fall.
Silver Is Up, Leading To Gains In The Stock
Look around my friends, silver is skyrocketing, and that's a great thing for First Majestic Silver. The gains are the result of major global economic concerns. The year 2016 has been an incredibly rough one around the world economically, and recently, things have been expected to get worse.
Recently, UK consumers voted to leave the EU. This is expected to cause economic hardships around the world. With the United States already on the brink of a recession, this action could send the world's largest economy spiraling. With all of this going on, central banks continue to devalue currency. As this trend persists, investors are increasingly looking to silver as a way to protect their assets. So, that's why we're seeing gains in the value of AG stock.
What We're Seeing In The Market Today
Not surprisingly, AG continues to climb. Today is yet another day on the uptrend, and the speed at which the stock is trending up is dramatic. Currently, the stock is trading at $15.92 per share after a gain of $1.08 per share or 7.28% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from First Majestic Silver. The reality is that the company has the right product at the right time. With global economic conditions already concerning and getting worse, precious metals like gold and silver are likely to go through the roof in value. While this happens, AG will be raking in larger profits, showing investors true value.
All in all, things are looking great for the stock. I'm expecting to see further gains!
What Do You Think?
Where do you think AG is headed moving forward and why?