Silver has long been a popular precious metal investment, due to relatively stable value, extensive applications, and high demand. Silver also has a place in the renewable energy industry.
First Majestic Silver Corp. (NYSE: AG) engages in silver exploration, acquisition, development of its properties, and production. Headquarters are based in Canada, while operational properties are in Mexico. The company’s primary focus is on silver production, but it also has interests in gold and other minerals.
Silver is important to the renewable energy industry. It is a key component of photovoltaic solar panels. While manufacturers have worked to reduce the amount of silver needed in their panels (to cut costs), it cannot be eliminated completely. As the solar industry scales up, the demand for silver will increase, even if it is used more efficiently in manufacturing.
First Majestic has generated revenue growth for four out of the last five years. In the 2018 fiscal year, total revenue grew 19.11% to hit $390.05 million. This stock was covered earlier this year and it has now rallied by 42.03% in three months. Analysts believe there is still more upside to come. The average prediction indicates that price could grow 9.5% in the short term.
The bigger potential here is in the long term. Analysts have forecast that by 2035, more than $1.3 trillion will be invested in solar power globally. As a major silver producer, First Majestic can capitalize on renewable energy growth.
- 1 Year Price Growth: 67%
- YTD Price Growth: 38%
- 3 Month Price Growth: 03%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.