Elon Musk's rare comment on silver's surge: "This is not good" warns of supply chain disruption risks

Silver surges 150% in one year, with Musk rarely warning about industrial supply chain risks, reflecting a global structural gap in 2025.
(Background: Silver surpasses $76 and hits a new all-time high! Market value approaches $4.3 trillion, surpassing Apple. Analysts: There is still room for upward movement next year.)
(Additional context: Is the US dollar’s status wavering? Analysts: Gold and silver will continue to rise in 2026, and Bitcoin is expected to see a rebound.)

The international precious metals market is hot, with spot silver hitting record highs for several consecutive days, breaking through $79 per ounce, with this year’s increase reaching 170%. This has pushed silver’s market value beyond $4.4 trillion, surpassing tech giant Apple to become the third-largest asset globally, behind only gold (about $31 trillion) and NVIDIA (about $4.6 trillion).

Musk: Silver’s surge is not a good thing

Spot silver approaches $80 per ounce, prompting Tesla and SpaceX CEO Elon Musk to comment on X:

This is not good. Silver is essential in many industrial processes.

Silver’s excellent electrical and thermal conductivity has transformed it from a safe-haven asset into the “industrial blood” of high-tech manufacturing. According to reports, by 2025, industrial use will account for 50%–65% of total silver demand, including electric vehicle circuits, aerospace sensors, and AI servers.

However, under the pressure of doubling prices, costs for battery modules, photovoltaic welding lines, and other components are rising in tandem; with no feasible alternative metals in the short term, Musk worries that, besides costs, there is a risk of “no silver available” leading to production halts.

Supply-demand gap and stock shortages

The main reasons for silver’s strong rally this year include several factors: first, the ongoing structural imbalance between global supply and demand, with an estimated silver deficit of over 200 million ounces in 2025, and inventories continuing to tighten. Second, explosive growth in industrial demand, with significant increases in silver use in photovoltaic solar, electric vehicles, AI data centers, and semiconductors.

Additionally, expectations of Federal Reserve rate cuts, geopolitical tensions, a weakening US dollar, and silver being listed on the US critical minerals list have attracted substantial investment and safe-haven capital inflows. On the other hand, expansion in supply has faced difficulties. Major mineral-producing countries have limited capacity increases in recent years due to insufficient capital expenditure and stricter environmental approvals.

Looking ahead to 2026, unless miners succeed in significantly expanding production or recycling systems rapidly increase output, the market generally expects silver to remain in a “high volatility, high premium” zone.