Musk Flags Industrial Weakness Amid Silver Rally
Tesla CEO flags risks of soaring silver prices, citing heavy usage in EVs, solar panels, and industrial applications
India, Dec 29 : Tesla and SpaceX CEO Elon Musk has raised concerns over the ongoing silver rally, warning that the metal’s skyrocketing prices could pose risks due to its crucial role in various industrial processes.
“This is not good. Silver is needed in many industrial processes,” Musk posted on social media platform X, sparking a wave of reactions ranging from caution to alarm among investors and market observers.
The rally in silver has been extraordinary, with prices hovering around $79 per ounce and even surpassing Nvidia in implied market value on Monday. March silver futures on MCX were trading up 4.22% intraday at ₹2,49,282 per kilogram as of 10:10 AM.
The rapid surge has been fueled by speculative inflows, supply deficits, and rising industrial demand, especially in sectors such as electric vehicles, solar panels, and data centers, where silver is a key component. Analysts also noted that thin holiday trading amplified price swings due to subdued volumes.
Silver’s prices briefly touched an intraday record of $84 per ounce before retreating up to 8% from the peak, driven by profit booking. The white metal has delivered around 158% returns year to date in 2025, but experts warn that overvaluation may trigger ETF outflows or be impacted by downturns in related metals like copper.
Musk’s caution highlights the delicate balance between speculative trading and real-world industrial demand, emphasizing the potential risks of continued price surges in silver markets.
