Sprott's October 8 precious metals report shows spot silver closing September at $60.43 an ounce, down from $66.58 at the end of August, a 9.24 percent monthly decline. Silver is down 15.68 percent year to date but gained 3.12 percent over the third quarter. Gold fell 6.31 percent in September to $4,157.41.

The pressure came from rates and the dollar. The 10-year Treasury yield rose 53 basis points in September to 5.28 percent, the highest monthly close since March 2002. The 10-year TIPS yield climbed about 49 basis points, one of its largest monthly moves in 25 years. The DXY U.S. Dollar Index gained 2.03 percent to 101.45. The Federal Reserve raised rates by 25 basis points on September 16. The Bloomberg Commodity Index closed at 141.78, its highest monthly close since December 2012.

Investment flows were mixed. Bloomberg's total known silver ETF holdings index rose 0.14 percent to 803.95, its third consecutive monthly increase, though it remains down 6.77 percent year to date. Sprott noted that freely available silver supply is materially higher than a year ago and inventories are more stable, which points to a market largely in balance for now.

The chart tracks Shanghai silver premiums from September 2024 to September 2026. Premiums sat near $2 an ounce through 2025, spiked above $35 in early 2026 and have held around $8 to $10 since spring. Sprott said the elevated premiums, along with China's official manufacturing PMI rising to 50.1 in September from 49.8, point to continued industrial demand for silver.

Source: Sprott - https://sprott.com/insights/gold-holds-its-ground-as-real-yields-surge/