Why First Majestic Silver Stock Is Tarnishing Today - Mining Sector Under Pressure

Silver miner First Majestic takes a hit as precious metals face headwinds

Market Reality Check

First Majestic shares are losing their shine faster than a polished silver spoon at a yard sale. The mining stock's downturn reflects broader pressures hitting the precious metals sector—because sometimes even tangible assets can't escape digital market sentiment.

Production Pressures Mount

Operational challenges combine with fluctuating silver prices to create the perfect storm. Mining outputs that once glittered now face the harsh reality of rising costs and market volatility—proving that digging precious metals from the ground isn't always as profitable as mining digital assets from blockchain networks.

Investor Confidence Wanes

Traders are abandoning traditional mining stocks for more dynamic opportunities elsewhere. While silver has its industrial uses, today's investors clearly prefer assets that don't require physical storage and can move at the speed of light.

Another reminder that in modern finance, sometimes the most valuable metals are the ones that exist purely as code on a distributed ledger.

Image source: Getty Images.

Digging into the drop in First Majestic stock

While First Majestic has exposure to other metals, such as gold, lead, and zinc, it's silver that makes up the lion's share of the company's revenue. Through the first half of 2025, for example, silver production represented 55% of the company's sales. Because there's a high correlation between the movements of metals prices and the companies that produce those metals, the decline in First Majestic stock today is unsurprising.

As disheartening as the drop in First Majestic stock may be, savvy precious metals investors know that enduring dips in metals prices is part and parcel of investing in metals.

Although smaller companies may struggle with the plunging price of silver, First Majestic is an industry stalwart that recently reported a company record for first-half-of-the-year cash from operating activities: $225 million through the first two quarters of 2025.

There's a silver lining to the metal's plunging price

For investors who are looking for concentrated silver exposure, First Majestic is an excellent choice, considering it generates a higher percentage of revenue from silver production than its peers, and today's pullback represents a great buying opportunity. Of course, for those who want to mitigate the risk of investing in an individual company, a silver exchange-traded fund (ETF) is another great route to adding some glitter to one's portfolio.