Elon Musk warns of impact of China’s new silver export restrictions on markets
Invesco global market strategist Brian Levitt discusses the key market drivers for 2026 and reveals the best single investments for the new year in ‘Barron’s Roundtable.’
Tesla CEO Elon Musk warns of 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 X saying that China will start requiring government licenses for companies that export silver to the country from January 1.
“This is not good. Silver is needed in many industrial processes,” said the CEO of Tesla.
Silver prices rose to record highs this year after the US government designated them as essential minerals amid supply shortages and growing demand from industrial users and investors. Steel is used in a variety of industries, including electronics, medicine and renewable energy.
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Tesla CEO Elon Musk has warned China’s restrictions on silver exports could be a problem for industries that rely on it as an input. (Chesnot/Getty Images/Getty Images)
Silver prices are up more than 142% by 2025 as of Monday after starting the year just below $30 an ounce. The iShares Silver Trust, the largest exchange-traded fund tied to silver, has matched the metal’s gains.
Spot silver prices briefly touched i world class of $83.62 an ounce during Monday’s trading session before falling to $75.32.
“The drop in prices this morning, following record highs, was mainly caused by traders taking profits before the end of the year,” said ActivTrades analyst Ricardo Evangelista. “The expected optimism from the US administration regarding progress in the Ukraine peace talks also represents a breath of fresh air.”
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Silver prices rose to record highs but fell on year-end profit-taking. (Michael M. Santiago/Getty Images/Getty Images)
David Meger, director of metals trading at High Ridge Futures, noted that profit-taking is causing a pullback from “surprisingly high levels” and added, “I believe the fundamentals (of silver) of supply constraints are still factors in the market, and we still have good prospects going into 2026.”
Precious metals such as silver and gold also have an effect S&P 500 rise to a new high as the calendar is set to turn to the new year.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| GLD | SPDR GOLD SHARES TRUST – USD ACC | 399.02 | +0.45 |
+0.11% |
| SLV | ISHARES SILVER TRUST – USD ACC | 65.40 | -5.72 |
-8.04% |
| CHECK | SPDR S&P 500 ETF TRUST – USD DIS | 680.59 | +4,12 |
+0.61% |
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Silver prices rose amid growing supply and demand challenges. (Getty Images / Getty Images)
“If stocks are going to close out another year of double-digit gains on a high note, they’re probably going to need to do some serious work,” said Chris Larkin, managing director of trading and investing at Morgan Stanley’s E*Trade. But precious metals can also play an important role.
“Mining stocks were a big part of the S&P 500’s drive to the top last week, and have been tracking record-setting rallies in metals. If gold and silver close 2025 at record highs, the S&P 500 may have a better chance of doing the same,” explained Larkin.
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Reuters contributed to this report.
