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Democrats Win In Midterm Polls Could Significantly Lift Industrial Demand For Silver

World Gold Council Data Going Back To 1970 Show Gold Rising 62% Of The Time In The Six Months After A Midterm, With A Median Gain Of Just 2%,

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·  Midterm Election Snapshot: Americans are voting for 435 House seats, 35 Senate seats, and 36 governorships. Forecasters expect Democrats to win the House (~90% chance), while the Senate remains a toss-up driven by voter concerns over inflation, tariffs, and the Iran conflict.

·  Government Gridlock: A Democratic House would constrain President Trump’s agenda, leading to potential gridlock over spending and taxes.

·  Impact on Precious Metals: Election outcomes matter to gold and silver mainly through their impact on Treasury yields and the US dollar. Silver enters the vote under weaker pressure, while gold holds up better.

·  Historical Pattern: Since 1970, gold rises 62% of the time in the 6 months following a midterm, with a median gain of 2%—though past patterns are not guaranteed to repeat in 2026.

·  National Debt Factor: A full Democratic sweep (“blue sweep”) could focus trader attention on the $40.5 trillion national debt ($120,000 per US citizen), which could eventually boost investment demand for both metals.

·  War & Geopolitics: Funding for the 250+ day conflict with Iran would face heavy resistance in a Democratic Congress. An earlier end to the conflict would help gold and silver regain their traditional safe-haven status.

·  Industrial Boost for Silver: Democratic policies prioritizing social infrastructure and green energy legislation would significantly lift industrial demand for physical silver, potentially aiding its effort to break back above the historic $50 mark.

·  Interest Rate Risks: Higher federal spending could widen deficits and weaken the dollar (bullish for metals), but higher real interest rates and elevated Treasury yields could weigh on gold more than silver.

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International News

WGC REPORT–Gold Demand Trends Q3 2026

Year-To-Date Demand Of 3,881t Virtually Matches The 2025 Record, While Its Value Has Reached A New High Of US$566bn

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Total gold demand, including OTC investment and stock changes, was 1% lower y/y at 1,369t. Year-to-date demand of 3,881t virtually matches the 2025 record, while its value has reached a new high of US$566bn.

Key Highlights

Central bank buying jumped to 321t in Q3, led by China and Poland. The strong quarter lifted year-to-date demand to 675t, 6% ahead of the same period in 2025.  

Global gold ETFs added 211t in Q3, in a sharp reversal from Q2 outflows. Broad-based buying took holdings to a record 4,256t and generated a record US$31bn of quarterly inflows.  

Bar and coin investment fell to a four-year low of 268t. Rangebound prices discouraged fresh buying, although year-to-date demand remained at a 13-year high.  

Gold jewellery consumption fell 17% y/y to 313t, the weakest third quarter in our data series. High prices constrained affordability across all markets, but the value of demand edged 2% higher to US$43bn.  

Total gold supply slipped 1% y/y to 1,369t. Record third-quarter mine production of 1,071t was offset by an 8% fall in recycling to a three-year low of 314t.  

2026 Outlook
We expect continued gold ETF inflows and resilient bar and coin buying, together with robust central bank purchases, to be the principal drivers of overall demand growth. Technology demand should remain firm, but elevated prices will continue to weigh on jewellery volumes. Mine production could reach another record high, but subdued recycling is expected to result in a modest decline in total supply.

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