Musk warns on record silver prices amid China supply fears

Elon Musk has raised the alarm for manufacturers aft metallic prices surged to grounds highs successful precocious December.

Precious metals similar gold, silver, and platinum – often seen arsenic a hedge for investors – person rallied this year, amid a premix of geopolitical hazard driving investors to safe-haven assets and expectations of easing Federal Reserve argumentation successful 2026.

But metallic has been successful the drivers’ spot during the festive period up of caller restrictions connected exports from China which commencement connected Jan. 1. That has caused already precocious request for the metallic to harvester with proviso fears to nonstop it soaring.

Silver deed a grounds $80 an ounce connected Friday Dec. 26, up from conscionable $29 an ounce astatine the commencement of 2025 and marking a 179% year-to-date rise. It past retreated 5% connected Monday, successful a uncommon infinitesimal of volatility for a erstwhile metallic asset.

Responding to a station connected X astir Chinese export restrictions, Musk wrote: “This is not good. Silver is needed successful galore concern processes.”

Silver is simply a workhorse successful vigor and tech. It forms the conductive furniture successful star panels and is utilized successful the wiring and electronics of electrical cars. It besides helps support information centers moving smoothly, appearing successful contacts and circuit boards that negociate powerfulness and processing. All of those industries could beryllium deed if prices emergence excessively precocious and for excessively long.

China’s upcoming export limits travel arsenic portion of its program to summation much power implicit strategical minerals. Musk’s remark besides points to the increasing attraction that investors, commentators, and mean marketplace observers are paying to the asset.

“Make nary mistake: we are witnessing a generational bubble playing retired successful silver,” said Tony Sycamore, a marketplace expert astatine IG Australia. “With caller mines taking up to 10 years to make and superior being drawn into the precious metals bubble similar a moth to a flame, it is intolerable to accidental erstwhile the aerial mightiness travel out.”

“The ascendant operator of precocious has been a terrible structural supply-demand imbalance successful silver, sparking a scramble for carnal metal,” Sycamore added. “Buyers are present paying a singular 7% premium for contiguous transportation compared to waiting a year.”

Gold has besides had its champion twelvemonth since 1979, rising much than 70% to much than $4,500 an ounce from $2,623 astatine the commencement of 2025.