Chart of Hecla Mining Company:

Just when we thought that Hecla Mining was looking a little tired she bounces back with a near 8% gain in one day on volume of 8.44 million shares traded in contrast to its average volume of 3.88 million shares traded.

Taking a quick look at the chart we can see the spike that Hecla has made and also the dramatic increase in volume that drove it north. Also note that technical indicators remain high so don’t get too carried away.

Hecla Mining has now set a new high and is in uncharted waters at this point, if the gain is not reversed in a day or so then we could see Hecla moving even higher. And if silver holds, who knows where Hecla could take us?

On the news front we have a report by Forbes which says:

“Last month the company closed on a $750 million deal to buy its partner’s share of the Greens Creek silver mine on Admiralty Island. Gaining sole ownership of the world’s fifth-largest silver mine will double Hecla’s silver production to 11 million ounces per year, the Coeur d’Alene, Idaho-based company said.”

There was also the upgrading of the stock from ‘Sector Perform’ to ‘Out Perform’ by Michael Curran, an analyst at RBC who in a client note said that the prospect of bigger production will attract fresh cash.

Twenty four hours is becoming a short time in the silver market so stay alert as we are in a fast moving and rapidly changing environment. We have said many times in the past that this is a very small market sector and once the investing public in general take an interest in it, the fur will fly. We believe that we are still some distance from that point but the precious metals sector is beginning to shine in terms of news media coverage and the masses are becoming more aware so keep a close eye as this bull unfolds before your very eyes.

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As we write it is about 8.00pm New York time, mid night Sunday in the UK and the markets in Sydney have just opened with gold trading up $14.30 at $1016.80 and silver trading up $0.29 at $20.96 so a good start to the day.

Have a cheerful Monday.