First Majestic Silver: Follow the Money

09/29/2020 5:00 am EST

Focus: COMMODITIES

Frank Curzio

Founder and CEO, Curzio Research

I first recommended First Majestic Silver (AG) in July of 2019 when silver prices started breaking out above key resistance (then above $16.00 per ounce) levels, kicking off another bull market, recalls Frank Curzio, growth stock specialist and editor of Venture Opportunities

Over the last year, shares of AG have been volatile, as expected. Our 1/2 position has been up and down double-digits; and right now, the price of silver is around $24 per ounce (about 50% higher year-over-year.

Yet, First Majestic Silver is only about 8% higher than when we took our initial 1/2 position. Let’s take advantage of this and buy the second 1/2 of our anticipated stake in AG right now.

A significant reason for our decision to invest in First Majestic Silver was based on  its CEO, Keith Neumeyer, who is one of smartest people in the resource business.

He’s able to make tough decisions and understands the long-term game. When silver prices crashed (along with everything else) in March, he stopped selling silver ounces and waited for higher prices. 

This is just one example of his incredible leadership. He understands when to push ahead and when to hold off on any actions. 

Speaking of action, on September 10, AG announced it entered into an agreement with Eric Sprott. Long-time readers of our newsletter know that Eric is one of the best investors in the mining business.

And he’s buying five million shares at C$15.60 (roughly $11.72 U.S.). It’s always great to see big investors take large stakes at higher prices than we do.

Governments all over the world are hell-bent on printing money and propping up economies at all costs. And in a zero percent interest rate world, hard commodities like silver will continue to shine as fears of inflation take hold and investors looks to preserve value.

In sum, I expect the bull market in silver to continue — and that AG will be one of the biggest beneficiaries. Take the recent pullback as an opportunity to add to your position.

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