Gold aims to be the new black in China

With China's economy currently experiencing significant growth, the gold industry is working to attract the increased disposable income available to millions of its citizens and is succeeding in gaining a strong foothold in a market where white metal has dominated for so long.

According to Chinese tradition, yellow gold is the preferred option for long-term investments and is to be used in the case of hard times.

However, with fashions changing and the economy booming, increasing numbers of women, both within rural China and the nation’s rapidly expanding cities, are wearing gold jewellery, with thick yellow-gold earrings particularly popular.

In addition, gold memorabilia celebrating the forthcoming Beijing Olympics is also a common sight in the capital's shops, according to observers.

Indeed, recent figures have shown that China was one of the few countries in the world where the 25-year peak in gold prices failed to significantly impact upon domestic sales, with demand for gold jewellery falling by just one per cent over 2006, in comparison to a global average of 16 per cent.