Elon Musk sends brutal words on silver price surge
Silver rose 10.21% overnight, reaching an all-time high of $79.25 on December 27.
This rise comes at a time when demand for the metal is rising for solar panels, electric vehicles (EVs) and artificial intelligence (AI) hardware.
But the increase is also a warning sign that the world is in short supply of one of its most critical industrial metals.
Related: ‘Rich Dad Poor Dad’ author says silver will outperform Bitcoin
China controls 60% to 70% of world silver production. to impose New export controls from January 1, 2026.
Under the new rules, companies must obtain government licenses to export silver; Eligibility is limited to government-approved companies that produce at least 80 tons per year and have a credit limit of $30 million.
This move reduced international supply almost overnight, effectively hindering small and medium-sized exporters.
Accordingly statisticsThe global silver supply stands at approximately 1 billion ounces. Analysts to guess It is stated that this year’s supply deficit of 115 to 120 million ounces is straining global stocks as mine production has failed to meet consumption for the fifth consecutive year.
The total market cap of silver has now exceeded $4 trillion, feeds for a short time getting bored in october and renewed safe harbor Demand is amid global interest rate cuts and geopolitical tensions.
The physical silver market has become increasingly less liquid as buyers report delivery delays and bullion premiums have increased.
Traders and experts warn that above-ground reserves are rapidly being depleted as safe stocks have fallen to their lowest levels in recent years.
Venture capitalist Max Reiff warned,
“Demand for silver solar panels increased by 64% last year, with jewelry being the largest source of demand. This has been enough to push the market into a supply deficit for the past four years. Meanwhile, solar energy today accounts for only 9% of global electricity generation and ~2% of total energy production.”
Tesla’s CEO Elon Musk commented about the silver supply crisis,
“This is not good. Silver is needed in many industrial processes.”
Silver has become an industrial bottleneck critical to technologies supporting the clean energy transition, from EV components and batteries to photovoltaic cells and semiconductors.
Tesla does not publicly disclose the total silver consumption figure across the company. industry forecasts We suggest that battery electric vehicles (BEVs) such as Teslas typically use around 25-50 grams of silver per car. This is approximately 0.8-1.6 ounces per vehicle in electrical contacts, power electronics and control systems.
