Musk: the CEO of SpaceX and Tesla, has cautioned that the excessive silver price increase is concerning due to its need in several “industrial processes.”
“This isn’t good. “Many industrial processes require silver,” Musk recently said on social networking site X.
Social media users’ reactions varied from fear to caution, with some claiming that Musk’s worry indicated the excesses of the rally.
“I made an effort to alert everyone. A user said, “You know it’s bad when Elon Musk is worried about the price of silver going into oblivion.”
Many people have been taken aback by the silver boom, as the white metal, which is now trading at around $79 an ounce, surpassed Nvidia in indicated market value on Monday.
Musk, the CEO of EV manufacturer Tesla, may be concerned about the use of silver in electric cars.
After breaking new intraday records of $84 per ounce in the spot market, silver prices in international markets fell precipitously. Strong profit booking caused the white metal to drop as much as 8% from its top, ending what might have been a seventh straight day of gains.
As of 10.10 am, March silver futures on MCX were trading at 2,49,282 per kilogram, up 4.22 percent intraday.
Due to speculative inflows, supply shortages, and rising industrial demand, analysts observed that silver’s rise has surpassed that of other assets, including gold and major equities. Since the London gold market is supported by almost $700 billion in bullion that may be loaned out in the case of a liquidity crisis, they pointed out that silver does not have as substantial reserves as gold.
Furthermore, because of low volume, the abrupt changes were exacerbated by sparse holiday trading. Inventory has become more constrained due to silver’s industrial use in solar panels, electric cars, and data centers.
Although silver has produced remarkable gains of almost 158% so far in 2025, a recent analysis from Axis Mutual Fund cautioned that overvaluation may cause ETF withdrawals or that a decline in copper prices may also have an impact on silver prices.
