What The Hell Happened?

Hecla mining a 120 year old mining company just fell flat on its face. You can analyze the reason for an over 25% intraday drubbing but it really just boils down to technical damage and reaching the expected beatdown level of 4.50. It did overshoot intraday but closed well above it on the daily….4.61. Will it hold? Maybe. Who knows? So they closed a mine….the Silver Shaft at the Lucky Friday Mine, which has been closed since a rock burst in December, will be closed to remove built-up material in the shaft. Production at the mine is expected to resume in early 2013. As a result of the news, management lowered 2012 silver production estimates to 7 million ounces from 9.5 million ounces. So they lose a couple of million ounces of silver……IT AINT GOIN NOWHERE FOLKS!! What’s next? My guess is that couple my expected pullback for the miners and this news and we could see a sub-3 price on HL withing the next few months. Did I buy today? Why yes I did…will I hold ALL the shares I bought? Maybe….I won’t sell for a loss and if they don’t make a trader for me I’ll gladly hold and add depending on the charts and the overall miner and PM sector. Gotta take your licks and you can’t predict these shenanigans in the PM mining sector. If you are holding then just realize you are still an investor and that time is on your side….eventually. If silver does move up this year you can bet that HL will start moving WAY before the Lucky mine reopens. I put up a weekly 6 year chart on HL for you to peruse…

http://finance.yahoo.com/news/Feds-order-closure-accident-apf-665838406.html?x=0

Read more at Great Depression 2