Gold buyers not put off by high prices

With the price of gold soaring on international markets, it's no wonder it's costing rather more to buy a simple gold necklace. Here in China, jewelry made from the precious metal is getting ever more expensive, with the price of pure gold now around 300 yuan for every gram. But, as Zhou Xiaoye explains, high prices are not putting off eager customers.

Retailers in Beijing have raised the price of gold jewelry for the third time in one month. The price of pure gold has gone up 7 yuan per gram to 295 yuan. While the price for gold jewelry from a particularly well-known brand is as high as 328 yuan per gram.

One consumer said "I did not expect the price to surge so much, but I really need to buy it. It's for my parents."

One sales person said "Prices have gone up very fast, from 270 to the current 295 yuan. It's close to the peak price."

But despite the price hike, gold is still very much in demand. One reason is that some people still see it as an investment.

One consumer said "Gold will not depreciate, and is always valuable."

One sales person said "Chinese people consider buying gold a way to hedge against inflation. They'd rather hold gold than money in bank accounts."

International gold prices have been on the up since September, and have already surpassed 1180 dollars per ounce. Such an upward trend has attracted many individual investors. Experts agree that gold prices will continue to go up in the future, but warn that investors must still stay cautious about possible risks.