Elon Musk Warns Manufacturers of Impact from Surging Silver Prices
Elon Musk warned on X that rising silver prices could negatively affect manufacturers, emphasizing the metal's critical role in many industrial processes. Silver prices surged in December 2025 to record highs amid a rally that also lifted gold and platinum. Analysts attribute this increase to expectations of Federal Reserve rate cuts in 2026, which boosted demand for hard assets.
New restrictions on silver exports from China, effective January 1, have created concerns about supply amid geopolitical tensions that are driving safe-haven demand. Silver prices reached about $79 per ounce, rising from roughly $56 at the beginning of December and around $29 at the start of 2025.
Beyond its industrial applications in electrification, solar panels, electric vehicles, and data centres, silver is also seen as a store of value. Analysts from IG described the surge as a generational bubble, pointing to a structural supply-demand imbalance and strong physical demand.
According to Bloomberg, much of the readily available silver is currently held in New York, awaiting the outcome of a US commerce department probe into critical minerals imports. This investigation could potentially lead to tariffs or trade restrictions.
