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Precious Metals Companies See Surge in Trading as Investors Turn to Safe-haven Assets

Yasmim Mendonça by Yasmim Mendonça
March 18, 2023
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Shares of precious metals companies have been rising recently, with investors flocking to safe-haven assets amid a decline in the US dollar index and concerns over economic instability. The price of gold and silver soared on March 13, 2023, drawing in investors who were spooked by the collapse of Silicon Valley Bank.

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As news of the banking sector’s fresh crisis broke on March 15, 2023, gold prices climbed over 1% to their highest point since early February. With investors shying away from riskier assets, precious metals have again taken on their traditional role as a hedge against inflation and economic uncertainty.

The surge in trading for precious metals companies has been driven by investors seeking a haven in the face of global economic instability. While the US dollar index has declined, gold and silver have continued shining, providing a safe-haven option for those seeking to protect their wealth.

As the economic situation continues to be uncertain, the demand for precious metals will likely remain high. Investors will continue seeking safe-haven assets, and precious metals companies will be well-positioned to provide them.

AG Stock Performance: A Look at Today’s Trading and Growth Prospects

The stock market can be unpredictable, but AG is a promising option for investors looking for a stable investment in precious metals. The AG stock has been showing steady growth in recent times, and with today’s trading figures, it seems poised to continue on this upward trajectory.

Today’s trading figures show that AG stock opened at 7.07, higher than the previous close of 6.92. The day’s range has been between 6.96 and 7.43, with a volume of 12,574,326 shares traded. This is significantly higher than the average volume of the past three months, which is 6,546,967.

As of 7:00 pm ET, 03/17/2023, AG’s market cap is $1.6B. While the earnings growth from last year has been a disappointing -2,060.70%, there is hope for the future with an estimated earnings growth of +91.43% this year and a projected increase of +260.00% for the next five years. Additionally, revenue growth from last year stands at a healthy +6.87%.

The P/E ratio is currently unavailable (NM), but the Price/Sales ratio stands at 3.51, while the Price/Book ratio is 1.18. Looking at competitors, AG seems to be performing well, with a stock price increase of 3.14% compared to MAG’s 0.37% and ASM’s 5.97%. Pan American Silver (PAAS) seems to perform better than AG, with a stock price increase of 6.80%.

AG’s financials are also worth noting, with the next reporting date set for May 11, 2023. The EPS forecast for this quarter is -$0.01, while the annual revenue for last year was $624.2M. The yearly profit for the same period was -$114.3M, with a net profit margin of -18.31%.

In terms of the sector and industry, AG falls under non-energy minerals and precious metals, respectively. With headquarters in Vancouver, British Columbia, AG seems poised to continue its growth in the precious metals market.

Overall, today’s trading figures and growth prospects seem to indicate a bright future for AG. While past earnings growth has been disappointing, there are positive signs for the future, and AG’s competitors are performing similarly. AG may be worth considering for investors looking for a stable investment in precious metals.

AG Stock Price Forecast: What Investors Can Expect

First Majestic Silver Corp, also known as AG, has garnered attention from investors due to its potential for growth in the precious metals market. With five analysts offering 12-month price forecasts for AG, it’s worth taking a closer look at what investors can expect.

The median target for AG’s stock price is currently at 8.25, with a high estimate of 12.00 and a low estimate of 8.12. This indicates a potential increase of 12.70% from the last price of 7.32. While the high estimate may seem optimistic, even the median target indicates a promising outlook for AG’s stock.

Regarding analyst recommendations, the consensus among five polled investment analysts is to hold stock in AG. This rating had held steady since March, when it was unchanged from a hold rating.

It’s worth noting that the consensus among analysts can change quickly, significantly if significant developments in the precious metals market or AG’s financials change significantly. For investors, staying up-to-date with AG’s financial reports and news related to the precious metals market is essential to make informed investment decisions.

In addition to the price forecasts and analyst recommendations, investors may also want to consider other factors that could impact AG’s stock price. For example, competition from other precious metals companies, changes in government regulations related to mining and precious metals, and fluctuations in the overall stock market could all impact AG’s performance.

Overall, the stock price forecast for AG looks promising, with a potential increase of 12.70% according to the median target. While the current consensus among analysts is to hold stock in AG, investors should keep a close eye on any developments that could impact the company’s performance in the precious metals market.

Tags: AG
Yasmim Mendonça

Yasmim Mendonça

Yasmine's focus is on uncovering early-stage ideas with the potential to have a lasting impact. Her educational background includes a bachelor's degree in finance, an MBA, and two tests completed - the CFA and CMT.

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