Elon Musk sends brutal words on silver price surge

Silver surged 10.21% overnight to scope an all-time precocious of $79.25 connected Dec. 27.

The rally comes astatine a clip erstwhile the metal's request is increasing for star panels, electrical vehicles (EVs) and artificial quality (AI) hardware.

Yet, the surge is besides a informing motion that the satellite is moving abbreviated connected 1 of its astir captious concern metals.

Related: 'Rich Dad Poor Dad' writer says metallic volition outperform Bitcoin

China, which controls 60% to 70% of the world’s metallic output, is acceptable to impose caller export controls starting Jan. 1, 2026.

Under the caller rules, companies indispensable unafraid authorities licenses to export silver, with eligibility constricted to state-approved firms producing astatine slightest 80 tonnes annually and holding $30 cardinal successful recognition lines.

This determination efficaciously blocks tiny and mid-sized exporters, reducing planetary proviso astir overnight.

According to Statista, planetary metallic proviso stands astatine astir 1 cardinal ounces. Analysts estimation that proviso deficits of 115 cardinal to 120 cardinal ounces this twelvemonth are straining planetary inventories, arsenic excavation accumulation fails to conscionable depletion for a 5th consecutive year.

Silver’s full marketplace capitalization has present crossed $4 trillion, fueled by a abbreviated compression successful October and renewed safe-haven request amid planetary complaint cuts and geopolitical tensions.

The carnal metallic marketplace has grown progressively illiquid, with buyers reporting transportation delays and rising premiums connected bullion.

Traders and experts pass that above-ground reserves are being rapidly depleted arsenic vault inventories autumn to multi-year lows.

Venture capitalist Max Reiff warned,

"Demand for metallic star panels grew by 64% past year, passing jewelry arsenic the azygous biggest root of demand. It’s been capable to plaything the marketplace into a proviso shortage for the past 4 years. Meanwhile, star is lone 9% of planetary energy accumulation and ~2% of full vigor accumulation today"

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Tesla CEO Elon Musk commented connected the metallic proviso crisis,

“This is not good. Silver is needed successful galore concern processes.”

Silver has go an concern bottleneck, captious to technologies powering the cleanable vigor transition, from EV components and batteries to photovoltaic cells and semiconductors.

While Tesla doesn’t publically disclose a full company-wide metallic depletion figure, manufacture estimates suggest artillery electrical vehicles (BEVs), similar Teslas, typically usage astir 25–50 grams of metallic per car. This is astir 0.8–1.6 troy ounces per conveyance successful electrical contacts, powerfulness electronics, and power systems.