By Michelle Smith — Exclusive to Silver Investing NewsThe week began with silver continuing its push toward another multi-month high. Its climb was ended when US Federal Reserve Chairman Ben Bernanke went before Congress. Investors seemed to react not to what the Fed President said, but rather to what he didn't say. However, the sell-off was short-lived and today silver has been clawing its way back. On Tuesday, silver soared, gaining more than four percent. Recently silver has been receiving love from fund managers and other institutional investors who have realized the metal's value compared to other options.
ETP investors are showing their desire for the metal and have been taking a notable amount of interest in the market lately. Silver is also benefiting from a positive change of investor sentiment in India. The rupee has recovered and stabilized against the US dollar, and it appears that Indian investors are not only returning to the market, but are also becoming quite bullish on the metal. On Wednesday, the gold-silver ratio contracted to the lowest level since September. Positive US GDP data helped drive silver to a five-month high, allowing it to breach $35.65. The market was seeing “buy” stamped all over the white metal. Bernanke testifies On Wednesday, Bernanke testified before Congress, speaking of the potential for modest US growth and voicing concerns about unemployment. What he said didn't appear to garner much attention from investors. But, he didn't say anything about another round of quantitative easing, or QE3, and that moved the metals markets. Investors wanted announcements of more loose money from Europe and the US, and the EU didn't disappoint. On Wednesday, the European Central Bank announced a 530 billion euro injection. When these central banks have cranked out cheap money in the past, it has proven positive for precious metals, including silver. Bernanke, however, failed to follow suit and the disappointment was devastating.