We recently published a list of 10 Best Gold Penny Stocks to Buy Now. In this article, we are going to take a look at where Hecla Mining Company (NYSE:HL) stands against other best gold penny stocks to buy now.
The global precious metals market is influenced by economic uncertainty, inflation, and shifting supply and demand patterns. The Business Research Company projects that the global metals market will grow at a CAGR of 5.9% through 2025. The mining sector is expanding at a CAGR of 6.2%, outpacing the broader metals market, and is expected to reach $2,401.85 billion.
Gold prices set new records in 2025, with Reuters reporting spot gold at $2,936.38 per ounce on March 3 and U.S. gold futures at $2,956.10. Central banks are stockpiling gold, which is driving up demand at record rates. Furthermore, investors seek gold as a safe haven during periods of inflation. S&P Global reports that gold futures grew by 34.6% year-over-year as of March 7, 2025, outpacing broader market indices. These trends are reshaping the gold market’s role in finance.
Supply and demand patterns are also shifting as gold now flows from Asian hubs such as Dubai and Hong Kong to the U.S., driven by higher premiums in U.S. futures markets and fears of import tariffs. U.S. Comex gold inventories have jumped 80% since late 2024, and investors are responding to better pricing and arbitrage opportunities.
Meanwhile, silver prices have also surged, reaching $30 per ounce in 2024, the highest since 2011. This increase was driven by inflation, geopolitical instability, and a weaker U.S. dollar. The Silver Institute expects the total silver demand to reach 1.20 billion ounces in 2025 while fabrication demand will exceed 700 million ounces for the first time. Additionally, silver recycling is expected to rise 5% to over 200 million ounces, the highest since 2012.
Platinum supply remains tight, with global production forecast to rise marginally by 0.76% in 2025, reaching 7.32 million ounces, leaving a supply gap of 539,000 ounces. Refined platinum production is expected to fall by 1%, reaching 5.55 million ounces versus 5.63 million in 2024. South Africa’s declining output worsens this shortfall.
Despite these obstacles, technological advances offer some hope. AI-driven exploration has cut mine development time from 16 years to nine. According to KPMG Mining Outlook 2024, geophysical data analysis now takes weeks instead of years. New refining technologies like bioleaching and cyanide-free processing improve efficiency and sustainability, ensuring more secure long-term precious metal supplies.
Our Methodology
To compile a list of the 10 Best Gold Penny Stocks to Buy Now, we first sifted through ETFs and stock screener to gather the top mining stocks under $5. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 1,000 elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of a gold mine, with its winding roads and pits.
Hecla Mining Company (NYSE:HL)
Number of Hedge Fund Holders: 27
Hecla Mining Company (NYSE:HL) is North America’s top silver producer, with various precious and base metal mines across the region. Its main assets, including Greens Creek and Lucky Friday mines, deliver steady cash flow, while Keno Hill is central to future growth plans. The company is known for dependability and growth, which strengthens its position in the mining industry as one of the best penny stocks.
For the quarter ended December 31, 2024, Hecla Mining Company (NYSE:HL) posted record revenues of over $900 million, showing a 29.1% increase year-over-year. This boost came from higher silver and gold prices, and strong mine output. Greens Creek and Lucky Friday generated $228 million in free cash flow, allowing Hecla to self-fund its growth projects.
However, Hecla Mining Company (NYSE:HL) faced setbacks at Keno Hill, producing only 2.8 million ounces of silver, fewer than the expected target. This shortfall was caused by infrastructure issues and permit delays. Hecla is currently operating at 440 tons per day and is pushing to reach 600 tons per day to cut fixed costs and improve output. The company is working with Yukon officials to obtain permits for increased production.
Despite issues at Keno Hill, Hecla hit its 2024 silver production targets. Greens Creek delivered 8.5 million ounces, while Lucky Friday contributed 4.9 million ounces. Casa Berardi added 87,000 ounces of gold. Looking ahead, Hecla Mining Company (NYSE:HL) projects 15.5 to 17 million ounces of silver for 2025. The company’s outlook is positive, with Lucky Friday’s mine life extended to 18 years as a result of recent assessments.
Overall, HL ranks 2nd on our list of best gold penny stocks to buy now. While we acknowledge the potential of HL, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
