Why Hecla Mining Dropped Again Today

MrDecoder · 2026-03-12T01:11:05+00:00

Hecla Mining's stock dropped 5% as gold and silver prices declined due to concerns over rising inflation linked to geopolitical tensions. Investors may shift to interest-paying bonds if inflation spikes, affecting silver demand and Hecla's valuation.

MrDecoder

2026-03-12 01:11:05

Abstract generation in progress

**Hecla Mining **(HL 4.13%) stock declined 5% through 12:30 p.m. ET Wednesday after gold prices took another leg lower – and silver fell even more steeply. This morning, the U.S. Bureau of Labor Statistics reported the Consumer Price Index (CPI) rose 2.4% for a second straight month in February.

These two things are connected.

Image source: Getty Images.

Silver and gold and inflation

There’s war in the Mideast, and it may last a while. Investors often view precious metals like silver and gold as safe havens in times of conflict. Silver prices soared 2.5% in the immediate aftermath of the attacks on Iran.

War can also be inflationary, though, especially when it strangles global oil supplies and drives up fuel prices. So while CPI held steady in February (albeit still above the Fed’s 2% inflation target), the worry is that the March data will show a sharp rise in inflation.

If this happens, investors may sell silver (which doesn’t pay interest) and buy bonds instead (which do pay interest, and increasingly _more _interest as inflation rises). In a nutshell, this is why silver prices are down 5% to $85.14 an ounce today.

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NYSE: HL

Hecla Mining

Today’s Change

(-4.13%) $-0.91

Current Price

$21.10

Key Data Points

Market Cap

$15B

Day’s Range

$20.55 - $21.50

52wk Range

$4.46 - $34.17

Volume

477K

Avg Vol

27M

Gross Margin

40.87%

Dividend Yield

0.09%

What this means for Hecla Mining stock

As the nation’s biggest silver mining stock, it makes sense that Hecla mining stock would fall today – indeed, fall exactly the same amount silver prices are falling. It doesn’t help, either, that Hecla is a richly priced stock, costing nearly 45 times trailing earnings.

Granted, Hecla stock looks cheaper based on _forward _earnings – less than 29x. But this depends on earnings continuing to rise. If inflation surges and silver prices fall, Hecla stock might not end up much cheaper next year than it is now.

With plenty of cheap gold stocks to bet on instead, I’d avoid this expensive silver miner.

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