Just saw: Silver has completely skyrocketed in recent months. The price jumped over 10% overnight and reached an all-time high of nearly $80 in December — this is no coincidence.

The reason is quite interesting. The demand for silver for solar panels, electric vehicles, and AI hardware is exploding. But that’s only one side. The other is significantly more critical: the world is literally running out of the metal.

China controls 60 to 70% of global silver production but has introduced new export restrictions starting in January. Companies now need government licenses, must produce at least 80 tons per year, and have credit lines of over $30 million. This effectively blocks all smaller exporters and massively reduces the international supply.

The market deficit is real. According to analysts, the market is short between 115 and 120 million ounces this year. Mining production has already failed to meet demand for the fifth consecutive year. Above-ground inventories are falling to multi-year lows — this is the critical point.

What surprised me: the silver market has become increasingly illiquid. Buyers report delivery delays and rising premiums on bars. That’s a warning sign.

Elon Musk also commented on this. Tesla’s CEO said that silver is indispensable in many industrial processes — and that’s true. An average electric vehicle requires about 25 to 50 grams of silver in contacts, power electronics, and control systems. Given the production volume Tesla and other manufacturers are running, that’s a significant consumption.

Elon Musk is right: this is not good for the industry. With China tightening exports and global inventories declining, the shortage could spill over into EV, solar, and electronics manufacturing. That could drive up costs and slow down production growth.

Interestingly, crypto traders see this as an opportunity and are starting to shift their positions from silver to Bitcoin. But not everyone agrees. Some market commentators argue that this comparison misses the point — silver is simply irreplaceable in industry, and the shortage is structural, not speculative.

The market capitalization of silver has surpassed the $4 trillion mark. This shows how serious the situation is. If this trend continues, we could see even more interesting developments in commodities and related sectors. It’s worth keeping an eye on.