Bidding Wars Coming For Hecla & Coeur
Recently, there has been much speculation that Elon Musk(and other large industrial users of silver) would look to buy a silver mining company to guarantee a continuous source of silver. As the levels of available silver continue to decline and before the price explodes once the Comex fails and they can no longer suppress the price by creating millions of ounces of paper silver, one should expect to see bidding wars break out for the two most likely North American producers of silver. There are larger silver producers in Mexico and other parts of the world but Hecla (HL) produces more silver in both the US and Canada. That would be the ideal takeout and once a heated battle ends with a winner (let’s for argument sake say it is Musk) anyone else looking to buy a guaranteed source of silver would likely go to Coeur (CDE). Both should be bid up by multiples of where they are currently trading. The longer they wait and the higher the silver price goes, the more they are going to have to pay up to insure they have a source of silver for their businesses. If Musk was willing to pay over $40 billion for money losing Twitter just to help in the battle for free speech and the fight against government malfeasance, how much is he willing to pay to guarantee a source for silver, which is essential for all his businesses? $10 billion would be three times Hecla’s current market cap and he may even have to go higher than that if he doesn’t move quickly. Let the bidding wars begin. PS: Today’s early Silver price decline is a perfect opportunity to get in before the stocks are screaming to the upside.