Elon Musk has sounded the alarm over surging silver prices after the precious metal climbed to a record £58 ($76.37) per ounce on December 27, just days before China is set to impose sweeping export restrictions.
Responding to concerns about a global silver shortage on X, the Tesla chief executive warned bluntly that “this is not good,” stressing that silver is essential to modern industry. His comments came as silver prices jumped 10.21 percent overnight, marking the metal’s strongest annual performance since 1979.
From January 1, 2026, China will require exporters of silver, tungsten and antimony to obtain licences from the Ministry of Commerce, a move expected to sharply tighten global supply. The new rules effectively exclude small and mid-sized exporters, consolidating exports among state-approved entities.
Although China produces only about 13 percent of the world’s mined silver, it controls 60–70 percent of global refining capacity, giving Beijing significant leverage over international markets. The move mirrors earlier restrictions on rare earth elements and reflects a broader strategy to control critical mineral supply chains.
Silver has become a vital industrial material due to its unmatched electrical and thermal conductivity. The solar photovoltaic sector accounts for around 20 percent of global silver demand, while electric vehicles use between 25 and 50 grams per unit. Demand from semiconductors, medical devices and artificial intelligence hardware continues to rise.
The global silver market has been in structural deficit for five consecutive years. In 2025, demand reached 1.24 billion ounces, while supply stood at about 1.01 billion ounces. Inventories at major trading hubs have fallen to historic lows, intensifying price pressures.
Silver has rallied about 159 percent this year, more than double gold’s gains, driven by supply constraints, rising industrial demand and investor interest. Analysts warn that continued shortages could push prices even higher in 2026.
For manufacturers such as Tesla, securing stable silver supplies has become a strategic priority. Musk’s warning underscores growing concerns that shortages of critical minerals could disrupt production and slow the global clean energy transition.
Source: IB Times
Bd-pratidin English/ Jisan
