Why Hecla Mining Stock Just Hit an All-Time High This Week

Hecla Mining (NYSE: HL) stock rocketed 20% higher this week, according to data provided by S&P Global Market Intelligence. Silver prices are one reason why shares have hit a new all-time high. Silver just crossed a major price milestone.

It's not just silver prices that have investors piling into Hecla stock. The company was just added to a stock index, and, while not to the same degree as silver, gold prices have also been surging.

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Historic silver rally

It's no surprise that the silver price spike has investors more interested in Hecla. The miner is the largest primary silver producer in both the U.S. and Canada. The company is also benefiting from the rise in gold prices.

In a recent interview with CNBC, Hecla CEO Rob Krcmarov said silver and gold are trading higher for different reasons. Central banks have been spurring demand by buying gold at historically high levels over the past several years, with indications that those purchases will continue.

Silver, though, is a supply based rally. There has been a persistent deficit in silver supply for the past 5 years. Consumption has outpaced supply as industrial users, such as electronics manufacturers, have increasingly needed the metal. More recently, China began imposing export restrictions at the start of this year, helping ignite the massive rally.

Hecla stock has also gotten a boost after the company was added to the S&P MidCap 400 index last month. But it's the rising price of silver and gold that has been the real story. Investors looking for more details on supply and demand can listen to Hecla as it hosts its 2026 Investor Day in New York City on Monday, Jan. 26.

Howard 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.