“This is not good.” The price of silver is breaking records — and Elon Musk is worried

Tesla’s CEO issued the warning after silver prices reached all-time highs in late December. The value of the precious metal soared as China imposed export curbs, reigniting concerns about the metal’s supply for industrial purposes.

Os year preciosos how gold, silver and platinum, often seen as a safe haven for investors, have appreciated throughout this year, driven by both the increased risks geopolitical factors, which lead investors to look for safer assets, such as expectations of a more flexible monetary policy of the Federal Reserve in 2026.

However, was the talk who took over the protagonism during this festive period, especially in anticipation of the announced export restrictions by China, which come into force on January 1st.

The announcement of the Chinese restrictions led to the already high demand by metal joins fears about the offercausing the price of this precious metal to soar.

On Friday, silver reached a record high of 80 dollars per ouncea significant leap compared to 29 dollars recorded at the beginning of 2025which represents an appreciation of 179% in the year to date.

This Monday, the price fell 5%, in a rare moment of volatility for an asset in this segment. The decline was not reflected, however, in the price indices for the consumer: this Monday, the reference value for silver stands at €2,220.18/kg, an increase compared to Friday’s €2,185.15/kg.

On Saturday, in response to a post on the X network about Chinese export restrictions, Tesla CEO, Elon Musk: “This is not good. Silver is needed in many industrial processes.”

Silver is essential in the energy and technology sectors. It is used as a conductive layer in solar panels and integrates the wiring and electronic components of electric cars, notes the .

It also plays a fundamental role in theoperating data centersbeing present in contacts and circuit boards responsible for energy management and processing. All these sectors could be affected if prices remain high for too long.

China’s impending restrictions are part of a strategy to reinforce Beijing’s control over critical minerals. Musk’s comment also reflects the growing attention that investors, analysts and market observers are dedicating to this asset.

“Let us have no doubt: we are witnessing a generational bubble in the silver market,” he said Tony Sycamore, markets analyst at IG Australia. “With new mines taking up to ten years to come online and capital being drawn to this precious metals bubble like a moth to a light, it is impossible to predict when the air might come out.”

“The main factor in recent times has been a serious structural imbalance between supply and demand for silverleading to a rush into physical metal,” Sycamore added.

O gold also had the best performance since 1979with an appreciation of more than 70%, exceeding US$4,500 per ounce, compared to US$2,623 recorded at the beginning of 2025.