Why First Majestic Stock Sank Today

By Scott Levine | December 29, 2025, 6:10 PM

Key Points

  • Gold and silver prices declined today.

  • First Majestic generates the majority of its revenue from the sale of silver and gold.

  • Despite the stock's strong performance this year, First Majestic stock is available at a discount to its historical valuation.

It's all but a certainty that First Majestic (NYSE: AG) shareholders will look back on 2025 fondly. Before today's trading session began, First Majestic stock had soared more than 217% since the start of the year. With silver prices falling today, though, First Majestic stock appeared a little less alluring.

Shares of First Majestic fell 4.1% today, paring back an earlier decline of 6.9%.

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silver and gold bars.

Image source: Getty Images.

The silver rally hit the pause button today

After soaring to nearly $83 per ounce in overnight trading, the price of silver dropped steadily today. At 1:30 p.m. ET today, the price of silver had fallen to less than $71 per ounce. Around this time last year, the price of silver was trading at about $30 per ounce.

Gold also lost some of its luster. The price of the yellow metal had tumbled to about $4,322 per ounce as of 10:30 a.m. ET.

While the company reports revenue from sales of zinc and lead, First Majestic generates the majority of its revenue from silver and gold. In the first three quarters of 2025, silver and gold sales represented 57% and 33%, respectively, of the company's top line.

What's a precious metals investor to do now?

With the decline in silver and gold prices today, it's unsurprising that First Majestic stock slipped, considering the strong correlation between the prices of precious metals stocks and the market prices of silver and gold.

Despite First Majestic stock's impressive rise in 2025, investors seeking to add a leading silver stock to their portfolios still have a great opportunity with First Majestic. Currently, shares of First Majestic are changing hands at about 21.7 times operating cash flow, a discount to their five-year average cash flow multiple of 24.9.

Should you buy stock in First Majestic Silver right now?

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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