Silver surges 35%, but silver stock ETFs fall behind—A warning of leverage failure?

[BiTu] Renowned economist Peter Schiff recently pointed out that many stock investors are falling into denial psychology. Just look at the recent performance of silver to understand his concerns—this month, the spot price of silver increased by $4 in a single day, with a total gain of over 35%, showing a very strong momentum.

But here’s an interesting phenomenon: the silver stock ETF(SIL) only increased by 11% during the same period. It’s important to note that silver stocks usually have a high leverage effect on silver prices, and theoretically should outperform the spot price. Instead, they lagged behind, so what does this indicate?

Some are beginning to suspect: is the leverage failing, or is the market re-pricing? This phenomenon is worth paying attention to—it reflects differences in expectations between different assets, which is uncommon in traditional financial markets. For those focused on major asset allocation, this is indeed a signal.