High gold prices boost sales

The price of gold rose again on Thursday. The gold futures market in New York closed above 12-hundred US dollar per ounce again, almost reaching the historical high of 1,220 dollars. Gold prices in China have also been following suit, and the volume of sales is also increasing.

Normally, when gold prices go up, sales drop. But this time is different. This week, gold sales at this department store increased 25 percent more than the average of past two weeks.

"The New Year is coming. I want to buy some gold as presents for friends and family. The gold price is rising so quickly. I am afraid it may rise more by the year end."

For investors who bought gold a couple of months ago, it's time to take the profit. Gold vendors in Beijing have seen a surge in people trading-in gold.

Gold vendors say individual investors have become increasingly knowledgeable and sensitive to the financial market. Gold prices jumped more than 20 percent in the past three months and some investors are very satisfied.

Gold experts warn that investing in gold can also be risky. Gold jewelry and antiques have less investment value than pure gold bars. There are also transaction costs for gold bars. Frequent buying and selling are not recommended.