With the incredibly sharp decline in precious metals in just the past few days, I wanted to put a spotlight on silver relative to equities and suggest reasons for why there has been such a powerful move lower.

First, consider that silver has strongly outperformed the S&P 500 going back three years.

However, this year has not been kind to investors betting that silver was a better place to invest than the stock market despite concerns over a systemic collapse in financial markets.

The easiest way to see the longer-term outperformance of gold relative to stocks is to take a look at the price ratio of the iShares Silver Trust ETF (NYSEArca: SLV) against the iShares S&P 500 (NYSEArca: IVV).

As a reminder, a rising price ratio means the numerator/SLV is outperforming (up more/down less) the denominator/IVV.