RAJKOT, India (Commodity Online): India's smart investors in the state of Gujarat have now realized the importance of silver following the huge rise in prices of gold. So, many of them have shifted to silver to make a killing.

Jewellers in the state opined that people who just want to invest in precious metals have started buying silver instead of gold, but consumers who want to buy jewellery have not shifted from gold.

Sales of silver coins and biscuits have gone up this week. Raw silver sales have risen by at least 30 per cent from any normal day.

This week pure gold (.999) prices opened to an all-time high of Rs 16,720-16,740 per 10 gm and touched the price of Rs 16,900.

Since August, silver prices in Gujarat have risen to Rs 27,000 a kg from earlier Rs 22,000, a rise of 22 per cent. While gold prices have risen only 8 per cent in the same period.

Spot silver prices were likely to rise to Rs 30,000 a kg end of this month, a rise of over 11 per cent from current prices, while gold is likely to climb to Rs 18,000 per 10 gm, up only 7 per cent.

Silver traded in the spot market at Rs 27,350 a kg this week. Silver seems lucrative as of now for the investors, but those who want to buy jewellery for the ongoing wedding season have not shifted to silver.

Jewellers said currently sales of gold jewellery were down sharply, despite the wedding season. Gold jewellery sales are down by 40-50 per cent after the sudden price rise. However, sales of raw silver have gone up 30-35 per cent as it is likely to give more returns.