Musk warns on record silver prices amid China supply fears
HalfDime
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Elon Musk has raised the alarm for manufacturers after silver prices surged to record highs in late December.
"Precious metals like gold, silver, and platinum – often seen as a hedge for investors – have rallied this year, amid a mix of geopolitical risk driving investors to safe-haven assets and expectations of easing Federal Reserve policy in 2026.
But silver has been in the drivers’ seat during the festive month ahead of fresh restrictions on exports from China which start on Jan. 1. That has caused already high demand for the metal to combine with supply fears to send it soaring.
Responding to a post on X about Chinese export restrictions, Musk wrote: “This is not good. Silver is needed in many industrial processes.”
Silver is a workhorse in energy and tech. It forms the conductive layer in solar panels and is used in the wiring and electronics of electric cars. It also helps keep data centers running smoothly, appearing in contacts and circuit boards that manage power and processing. All of those industries could be hit if prices rise too high and for too long.
China’s upcoming export limits come as part of its plan to gain more control over strategic minerals. Musk’s comment also points to the growing attention that investors, commentators, and ordinary market observers are paying to the asset."
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In case anyone hasn't seen the reason for the recent surge. They must be hording now to make sure they have the supply. China was partly responsible for the start of the gold bull run back around 2000 when they lifted restrictions on the buying of gold in China. So they have done it before.
Comments
full Charlton Heston on my phyzz
Loves me some shiny!
“Often wrong, but never in doubt.”
"Global silver deficits could exceed 5,000 metric tons annually if China reduces exports by 50%, building upon existing annual shortfalls documented by industry research organisations. This supply-demand imbalance occurs precisely as industrial demand accelerates through renewable energy infrastructure buildouts and electronics manufacturing expansion in emerging markets."
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Many may have sold early, but time will tell. If China hoards what they mine, then the rest of the world will need the silver the stackers put away. Some are already selling, but silver may go back to historic ratios now, and they means higher prices from here.
silver export restrictions are in place in China.
in mid-January Washington to make decision on adding tariffs to silver.
When gold and silver move together, it signals the coming end of fiat money.
Falling spot prices will result in higher premiums for the metal. Supply of real silver is tight.
When gold and silver move together, it signals the coming end of fiat money.
I don't think that it is sellers of physical metal that is causing these drops.
Healthy reaction.
I knew it would happen.
Has to happen.
COPPER is gutter !
it's a deliberate attempt by the futures bullion bank traders to assist in reducing demand for COMEX's very limited supply of physical silver. They are attempting to turn buyers into sellers.
When gold and silver move together, it signals the coming end of fiat money.
I'd be more than happy to oblige them at silver spot $80.00+
Musk's margins are going to be hit on his businesses, that's not my problem.
The price of silver adjusted for inflation is still not at record highs. Pricing for a supply disruption may not be over.
The cheapest bullion dealer I know of is pricing ASEs at $79+ with spot at $71.
A reduction in paper spot price will increase the premium for the real stuff.
When gold and silver move together, it signals the coming end of fiat money.
"Regulatory scrutiny is expected to intensify in the coming months. Critics are already calling for an investigation into whether the CME’s margin hikes were influenced by "Too Big to Fail" banks that were facing catastrophic losses on their short positions. This mirrors the fallout from the 2021 LME nickel crisis, where an exchange cancelled trades to save a major member, leading to years of litigation and a loss of market trust."
They will have to unwind all those positions, and that means more buying over time. China restrictions start on Jan. 1st, 2026.
Regulatory scrutiny on the banks is like the Keystone Cops. Shanghi Gold Exchange is where the real changes are taking place.
I knew it would happen.
Since banks don't have positions in silver, these comments mean nothing.
Somebody can't read a bank balance sheet.
Too bad they don’t restrict the thousands of fake silver eagles flooding our country via ebay.
``https://ebay.us/m/KxolR5
"A short does not have to be someone who is short futures contracts. A short, in trading terminology, means anyone who needs to buy it. If you are a technology company and need to buy it, you are technically a short. If you cannot use the futures because you are worried that you cannot take delivery, because delivery will not be given to you, then you have to find the physical immediately. That is why companies like Samsung are now going to the source." - VBL
When gold and silver move together, it signals the coming end of fiat money.
I believe the notional value of futures, swaps, etc are all off-balance sheet reporting. I did an audit of a large German Bank and its off balance sheet reporting dwarfed its capital and balance sheet.
actually CFTC’s Bank Participation Report shows 22 banks net short about 212 million ounces in COMEX silver futures at the time. However, shorts are not the story. Projected depletion of supply is the story and it is what is driving prices. The scramble for physical metal is real and it is game-on. $100 silver by April Fools Day.
When gold and silver move together, it signals the coming end of fiat money.
China is cutting off Westen access to their silver January 1. They are the second largest supplier of silver (behind Mexico) and produce 3X the silver as the US. Removing their 13% of global supply from an already depleting market will will create a massive imbalance between supply and demand. China is breaking the Western paper market. COMEX is scrambling to delay it. When you cannot control supply you attempt to control demand (margin requirement increases), but this only affects "paper"spot price. Because price of physical begins with spot, premiums will skyrocket for physical silver to match demand for the real McCoy. In Dubai it costs $95 for an ounce of silver.
The paper price is artificial. The more that sellers of real silver realize this the higher premiums for it will rise. Disconnect from spot prices is approaching quickly.
When gold and silver move together, it signals the coming end of fiat money.
Somebody can't read a bank balance sheet.
That's funny. Which set of books should one be reading?
I knew it would happen.
China understands that the paper market is complete BS. It’s profitable for sure if you play this fake game correctly. But it’s all fake.
If it wasn’t pure fantasy, there probably would be a Precious Paper subforum here.
COPPER is gutter !
China understands the real value and importance of the silver mined in China. Their removal of it from Western markets has created a shock event on the West's futures exchanges which has resulted in record margin requirements to keep the demand (price) on those exchanges to a minimum. Those who do not see a silver war between East and West are not paying attention.
When gold and silver move together, it signals the coming end of fiat money.
When gold and silver move together, it signals the coming end of fiat money.
The eye opener for me here ^ is the quality of ore declining. Haven't read much on that at all. Everything else no surprises.
COPPER is gutter !
Don't suppose you have a source (outside of youtubes) to back any of these claims up? I bet coin shops just in the US took in your supposed annual global "deficit" just this week alone. The gutter is not rare; mountains of it piling up everywhere. THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
According to industry reports, the global silver market is expected to remain in deficit in 2025, with projected shortfalls on the order of more than 100 million ounces.
The shortage is what is piling up. LOL
When gold and silver move together, it signals the coming end of fiat money.
Screw AG, buy Rhodium, looks like Kitco made a typo, lol
Successful BST:here and ATS, bumanchu, wdrob, hashtag, KeeNoooo, mikej61, Yonico, Meltdown, BAJJERFAN, Excaliber, lordmarcovan, cucamongacoin, robkool, bradyc, tonedcointrader, mumu, Windycity, astrotrain, tizofthe, overdate, rwyarmch, mkman123, Timbuk3,GBurger717, airplanenut, coinkid855 ,illini420, michaeldixon, Weiss, Morpheus, Deepcoin, Collectorcoins, AUandAG, D.Schwager, blu62vette,
it is not unheard of that kitco has quote mistakes post-close and pre-open
blitzboy's gutter stance sure makin him look bad. Approaching new high.
When gold and silver move together, it signals the coming end of fiat money.
I'm doing just fine. Even my dog poo under me shoe gutter position be BOOMIN!™. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
Double wide is just WAITIN!™ for spot to drop so he can post a screen shot and beg for attention.
Loves me some shiny!
“Often wrong, but never in doubt.”
clock is always right twice a day.
When gold and silver move together, it signals the coming end of fiat money.
COPPER is gutter !
A little early to buy gold. Wait until just before a $100 down day in silver.
Bullion Star in Singapore now has a $5K order minimum.
When gold and silver move together, it signals the coming end of fiat money.
Singapore dollars. That’s about $3900USD.
Of course Musk bought a silver mine last year because he saw this coming. His purchase was one of the very first anecdotal bits of evidence signaling this change. He is a large consumer of metal but may or may not have ample supplies. Buying a silver mine certainly implies all his silver wasn't in contracts or his own pipeline but in any case a move in silver wouldn't necessarily be harmful to his interests. I would agree with him that any large scale increase in silver prices would affect the bottom line of a few silver consumers. There are various means to equitably distribute production while assuring a floating price. If governments absorb much they will disrupt the balance and will generate inefficiency.
There's plenty of silver to last a minimum of ten years. If consumption doesn't continue its parabolic what we have plus a little increased mining would last as much as twenty five or thirty years. My only assumption here is that US 90% coin is the largest single source of the silver that will make up any kind of shortfall. At current price levels there should be very little pain to even the largest of the consumers. Higher prices will force better conservation. In the middle of the next decade we don't want to remember the days silver was rare and you had electricity.
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I wouldn't count on it. 90% coin has been melted off and on for 60 years, sometimes massively. There can't be that much left, and much of what remains is in strong hands, along with small stashes accumulated decades ago from circulation. I would estimate that 80% to 90% of all U.S. formerly circulating silver coins are either already melted, lost through attrition, or spread out among thousands of tiny hoards that will be trickling slowly into the market for decades to come.
It’s anyone’s guess on how much 90% US Constitutional survives. A interesting topic for sure. Here is an interesting analysis..
COPPER is gutter !
Go back and look at the circulated coin mintage numbers for the last 100 years, no way 80% to 90% of all U.S. formerly circulating silver coins was melted in only 3 upticks.
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About 20% to 30% were already gone from circulation by 1964, including virtually all of the Barbers, due to wear and loss. A substantial number of the high-mintage 1964 Kennedys were exported to other countries, due to the popularity of Kennedy and the coin. A substantial amount of 90% was melted during the late 1960s, both legally and illegally.
It wasn't only 3 upticks. From the 1970s onward, there were frequent periods when 90% silver had a negative premium which led to considerable melting. I expect this is happening today and will continue, especially if the price of silver continues its upward trajectory.