Why Hecla Mining Dropped Again Today
Key Points
The U.S. Bureau of Labor Statistics reported 2.4% CPI growth in February, stoking inflation fears.
Inflation can be bad for silver prices -- and for Hecla Mining stock.
- 10 stocks we like better than Hecla Mining ›
Hecla Mining (NYSE: HL) 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.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
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.
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.
Should you buy stock in Hecla Mining right now?
Before you buy stock in Hecla Mining, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hecla Mining wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $522,791!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,132,678!*
Now, it’s worth noting Stock Advisor’s total average return is 952% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 11, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
