AG Stock Price: First Majestic Silver Corp plummets as Reddit turf war loses momentum

NYSE:AG has had an interesting couple of days as the precious metals miner found itself in the middle of the Reddit turf war that has taken over Wall Street for the past week. Shares of First Majestic Silver hit freefall on Tuesday as the usually steady stock collapsed by 24.23% after a one day rally that was fueled by a sudden social-media rally to buy up anything related to silver. Despite the selloff, First Majestic is still trading at a price level that is above its 50-day and 200-day moving averages. 

The one-day spike came after rumours spread all over Twitter (NYSE:TWTR) and Reddit that the hedge funds were also shorting the silver industry. There are conflicting reports on if this is actually true or not, with some mentioning that the rumours were started by the hedge funds themselves after infiltrating the r/WallStreetBets subgroup. The fall in silver came on the same day that Reddit stocks like AMC (NYSE:AMC), GameStop (NYSE:GME) and BlackBerry (NYSE:BB) all got slaughtered by selloffs. 

AG stock chart

AG has actually rebounded nicely after hours as savvy investors are using the selloff as an opportunity to buy the stock at a discounted price. The silver industry as a whole has been on a nice run during the novel coronavirus pandemic as volatile markets have led to investors seeking inflationary hedges that provide more stability. Other investing vehicles that have been used are gold, which had reached an all-time high earlier in 2020, as well as cryptocurrencies like Bitcoin.