Silver prices in the global market are climbing at an extraordinary speed, moving further out of reach for ordinary buyers and touching new record highs almost daily.

The cost of silver has now crossed Rs 2.50 lakh per kilogram, drawing serious concern from Tesla chief and billionaire entrepreneur Elon Musk. He has voiced unease over the sharp surge in the price of the white metal, emphasizing its critical role in modern industries.

Musk cautioned that while silver is essential for industrial use, such steep price levels are unhealthy for manufacturing and production. In a post shared on the social media platform X, he stated that the situation is not favorable, noting that silver is required for numerous industrial applications. At present, silver is trading at around USD 79 per ounce in international markets.

Beyond its traditional use in jewellery, silver plays a vital role in several sectors. It is widely used in the production of electric vehicles, solar energy panels, data centers, and various electrical and electronic components. Given that Musk leads an electric vehicle company, the rising cost of silver directly impacts his business interests, which appears to be a key reason behind his concern.

Market analysts observed an unusual jump in silver prices during December. Experts attribute this rally mainly to expectations that the US Federal Reserve may reduce interest rates in 2026, along with investors moving funds toward safer assets such as precious metals. Gold prices have also been increasing alongside silver during this period.