Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk on Saturday warned that China’s reported move to restrict exports of silver starting in January is “not good.”
Musk’s Apprehension
Musk expressed his apprehension in a post on the social media platform X, saying, “Silver is needed in many industrial processes,” highlighting the importance of silver in various manufacturing sectors.
Spot silver prices hovered at $79.16 per troy ounce on Saturday, notching a new all-time high after soaring by 10%.
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Schiff’s Outlook
Economist Peter Schiff raised concerns about Bitcoin (CRYPTO: BTC), warning that a scenario in the opposite direction might happen with the cryptocurrency, compared to what is happening with silver prices.
“What is happening with silver may soon be happening with Bitcoin, only in reverse,” he said. The economist emphasized that market downturns typically occur more rapidly than upturns, indicating a potentially expedited timeline for such a shift.
Soaring Silver
The silver market has been experiencing significant fluctuations, with prices reaching record highs. In December, silver, along with gold, surged to new peaks.
This rally was part of a broader trend, as silver had already hit a record high of $51 an ounce in October, marking a psychological milestone for investors. Analysts have suggested that the explosive move in silver prices might still be ahead, driven by severe physical market stress and a structural supply crunch.
Despite these gains, silver remains relatively undervalued compared to gold. The gold-to-silver ratio remains high, suggesting potential for further price adjustments.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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