Tesla and SpaceX CEO Elon Musk expressed worry about the ongoing surge in silver prices due to its crucial role in various industrial processes. Musk’s social media post on the matter has sparked mixed reactions, with some users interpreting his concern as a signal of the rally’s excessive nature. The price of silver, currently around $79 per ounce, has surprised many observers by surpassing Nvidia in implied market value.
The potential implications of the silver rally on the electric vehicle sector, particularly concerning the usage of silver in EVs, could be a point of concern for Musk, given his role at Tesla. Despite reaching intraday highs of $84 per ounce in global markets, silver prices experienced a sharp retreat, dropping by as much as 8% due to significant profit booking.
Analysts have highlighted that silver’s recent surge, outpacing assets like gold and major stocks, is driven by speculative inflows, supply deficits, and rising industrial demand. Unlike gold, which has substantial reserves, the silver market lacks such robust backing, with the London gold market supported by approximately $700 billion in bullion available for lending during liquidity crises. The surge in silver prices has been further fueled by its industrial applications in solar panels, electric vehicles, and data centers, leading to tightened inventories.
Silver has delivered remarkable returns of about 158% year-to-date in 2025. However, a recent report from Axis Mutual Fund has cautioned about potential overvaluation risks that could trigger ETF outflows or be exacerbated by a downturn in copper prices, consequently impacting silver prices.
