Why First Majestic Silver Stock Rocketed Over 12% on July 22
Shares of silver and gold miner First Majestic Silver (NYSE: AG) were higher by an impressive 12% or so at roughly 1 p.m. EDT on July 22. The price jump followed a notable advance in the price of silver, which is conveniently included in the precious metals miner's name. There's a longer-term story here.
The first thing to understand about First Majestic is that it generates roughly 60% of its revenue from silver, with the rest coming from gold. Silver is very clearly an important metal for the company, but like most miners it doesn't only produce a single metal and is, thus, not a pure play on silver (despite what its name might imply). An exchange traded fund (ETF) like iShares Silver Trust, which directly owns the metal, would be a better option for specific exposure to silver. That said, silver has been on an incredible run lately and First Majestic will clearly benefit.
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Source Fool.com
