Silver and Gold Break Out—3 Names to Ride The Wave

Key Points

• There are three ways to play this recent gold and silver breakout, with ETFs that match both safety and cost efficiency and a direct mining play.
• There are two ways to approach diversification: investors can choose to remain under the radar or tap into institutional flow.
• Hecla Mining stock offers new double-digit upside potential, one that institutions are already buying.

The economics of metals mining are relatively straightforward, and the same applies to the entire basic materials sector. These businesses are closely tied to and exposed to the cyclical nature of the commodity they mine, as lower prices will erode their margins, considering that the cost of operation remains constant regardless of the price.

However, the opposite is also true; costs can stay relatively level through a commodity rally, expanding margins significantly.

This is precisely why investors should keep an eye out for stocks in this area of the market. Gold and silver have now broken out to new 52-week highs, creating a new wave of upside and profitability that can trickle down into bottom-line earnings per share (EPS) and boost not only the market’s sentiment toward these stocks but also their valuations.

Some mining companies are worth considering to gain exposure to this new metals rally. For investors uncomfortable with buying physical gold or gold futures, the SPDR Gold Shares NYSEARCA: GLD provides a convenient way to track gold’s performance without the complications.

Additionally, the iShares Gold Trust NYSEARCA: IAU also aims to mirror gold’s performance, offering some extra benefits. Lastly, Hecla Mining Co. NYSE: HL is a straightforward mining company worth noting.

Gold Shares to Match Big Money

The difference between the SPDR Gold Shares exchange-traded fund (ETF) and the iShares Gold Trust is mainly their scale and expense.

The SPDR Gold Shares fund is much larger, with roughly $100 billion in market capitalization, about double the size of IAU. That scale allows GLD to attract heavy institutional participation. In fact, $2.8 billion worth of institutional buying flowed into the ETF last quarter, much of it from momentum-driven funds looking for fast, liquid exposure to gold.

The cost of that liquidity is higher fees. GLD’s expense ratio is 0.40%, compared to only 0.09% for the SPDR S&P 500 ETF Trust NYSEARCA: SPY and significantly more than IAU’s fee. Investors essentially pay a premium for GLD’s larger size, deep liquidity, and role as the “default” gold ETF.

Conventional Investors Look to iShares Gold Trust Instead

By contrast, the iShares Gold Trust is smaller, at about $50 billion, but its expense ratio is just 0.25%, nearly half the cost of GLD.

That lower fee structure makes IAU particularly attractive for long-term, buy-and-hold investors who want to track gold prices without paying for GLD’s institutional-scale liquidity.

Because it is less of a trading vehicle for big players, IAU often carries lower volatility and lower short interest—just 0.9% of float, compared with GLD’s 3.4%. For retail investors, this setup can be advantageous, as the fund tends to move more steadily with gold’s price rather than being pulled around by heavy institutional flows.

Wall Street Optimism for Hecla Mining Stock

As this mining stock broke out into a 47.7% rally over the past month alone, tied to the massive price action seen in gold and silver, it was time for Wall Street analysts to adjust their opinions. Hence, they reflect the true nature of this company’s future.

Even though the consensus view is now of a Hold valuing Hecla Mining at $7.4 per share (calling for 16.6% downside), recent adjustments have been made by a few analysts to show retail investors where the more realistic targets may be. One came from Heiko Ihle from HC Wainwright, with his Buy rating attached to a $12.5 per share valuation.

From where the stock trades today, this implies a new 52-week high to be made and a dare for Hecla Mining stock to rally by a further 42% from today’s prices. Knowing this, it should come as no surprise for investors to see State Street boost their holdings in Hecla Mining by 7.2% in August 2025, netting a new position of $179.9 million in total.