The silver market has indeed been fierce over the past three months, with prices soaring by 60%. But interestingly, the performance of mining companies has only increased by 58%, clearly lagging behind.

This actually reflects an old problem — mining companies are usually highly leveraged, and logically should outperform metal prices even more, but instead they are falling behind. This indicates that the market is still on the sidelines, not fully convinced that this rally is real.

If silver can stabilize at $85 within three months, the situation would be different. Once this price is recognized by the market as the new normal, mining stocks will experience explosive growth. By then, the suppressed leverage effect will be fully unleashed.