The recent crazy movement in silver prices has attracted a lot of attention, and Tesla CEO Elon Musk can no longer stay on the sidelines. He commented on the surge in silver prices on social media, stating that this situation is not sustainable because silver is indispensable in a wide range of industrial productions such as solar energy, electric vehicles, and electronic devices.

His remarks were a response to the over 17% surge in silver prices this week, which was driven by a severe shortage in global supply. It might seem like a simple supply and demand issue at first glance, but the reality is much more complex upon closer inspection.

**Why is the manufacturing giant so anxious?**

Musk’s concerns point to a very real problem. Silver is not some intangible financial asset; it is a raw material essential for industries that shape the future—clean energy, electric transportation, advanced electronics. If prices spiral out of control, it will directly impact global manufacturing costs, especially for industries heavily invested in energy transition. The development of green energy inherently requires cost control, and the volatility in silver prices makes this difficult to manage.

**The harsh reality behind the numbers**

Silver has already increased by over 150% this year, which is no small feat. The recent rally is driven not just by speculators, but by several tangible factors:

First, supply has become severely tight. The global market has long been facing structural shortages, with inventories at major exchanges continuously depleting. This is not just short-term fluctuation but a long-term trend.

Second, demand-side factors are also strong. Industrial sectors account for 50% to 60% of silver demand, with orders in the photovoltaic and electric vehicle industries growing steadily—both are hot sectors right now.

Another key variable is policy signals. Reports indicate that major silver refining countries may start implementing licensing management for silver exports as early as 2026. Once this measure is implemented, supply chain uncertainties will increase significantly, naturally pushing market expectations higher.

**This is far more than an investment issue**

Thinking carefully, Musk’s comment is essentially a warning. When a strategic resource that directly affects future energy patterns and technological progress faces a real crisis, the ripple effects will far exceed the financial markets themselves. Rising industrial costs, declining product competitiveness, disruptions in the supply chain—these chain reactions could reshape entire industry landscapes. It’s not just about the cost concerns of industry leaders; it’s a genuine test of the resilience of the global industrial chain.