Elon Musk warns of new China silver export restrictions impact on markets

Tesla CEO Elon Musk It raises concerns about rising silver prices as China prepares to impose new export restrictions on the precious metal.

Musk responded to a post on his social media platform

“This is not good. Silver is needed in many industrial processes,” the Tesla CEO said.

Silver prices Its prices rose to record levels this year after the US government classified it as a critical metal amid supply shortages and high demand from industrial users as well as investors. The metal is used in a variety of industries, including electronics, medicine and renewable energy.

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Silver prices were up more than 142% in 2025 as of Monday after starting the year at just under $30 an ounce. The iShares Silver Trust, the largest silver-linked exchange-traded fund, reflects the metal’s gains.

Spot silver prices briefly touched the level Highest level ever From $83.62 per ounce during Monday’s trading session before falling to $75.32.

“The price decline this morning, which followed record highs, is mainly due to traders taking profits before the end of the year,” said Ricardo Evangelista, an analyst at Active Trades. “The administration’s initial optimism about progress in the Ukraine peace talks also represents a moderate headwind.”

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Silver prices rose to record levels but fell due to profit-taking at the end of the year. (Michael M. Santiago/Getty Images/Getty Images)

David Meagher, director of metals trading at High Ridge Futures, noted that profit-taking is driving pullbacks from “astonishingly high levels,” and added, “I think the underlying fundamentals of (silver) supply constraints remain factors in the market, and we still have a positive outlook going into 2026.”

Precious metals such as silver and gold also contribute to… The rise of the S&P 500 to new highs as the calendar is set to turn to the new year.

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Silver prices rose amid increasing supply and demand challenges. (Getty Images/Getty Images)

“If stocks are going to close out another year of high double-digit gains, they will likely need to do a lot of heavy lifting,” said Chris Larkin, managing director of trading and investing at Morgan Stanley’s E*Trade. “But precious metals may also play a major role.”

“Mining stocks were a big part of the S&P 500’s rise to new highs last week, and have been tracking record highs in metals. If gold and silver close out 2025 at record levels, the S&P 500 may have a better chance of doing the same,” Larkin explained.

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Reuters contributed to this report.