HL, GDX - miners still digging

Hecla Mining (HL) collapsed 12% to close in the low $4s, after announcing it is purchasing Canadian silver miner 'Aurizon'. The mining sector as a whole also saw very significant declines of around 3%. With precious metals in danger of breaking the floor, miners remain in serious trouble.


HL, daily

GDX, monthly

Summary

With the purchase of another silver miner, HL really saw its stock price continue to spiral lower..and at an accelerated rate.

In the closing hour there were clear signs of 'bargain hunters' buying at the $4.00 level, but near term trend still looks weak.
 
The broader mining sector ETF of GDX is now lower for the sixth consecutive month.

It has to be asked, where will GDX be, if Silver breaks under <$20, and Gold $1200 ? We'd surely be looking at GDX 30, if not 25/20.