Those with gold investments may be interested to read that demand for gold jewelry in China is growing at a significant pace.

This is according to a report from Research In China, which showed that sales of jewelry in China reached a value of CNY180 billion ($26 billion) last year.

In addition, the retail price index of the country's gold jewelry has risen continuously over the last few months, while imports and exports of the products soared in 2007 compared with the previous year - something that could help to drive up gold prices as more businesses and consumers clamour for the yellow metal.

Further evidence for this may be found in the World Gold Council's report for the second quarter of 2008, which revealed that demand for gold in China rose by 15 per cent during the period compared with the same time last year.

"China's jewelry market is increasingly prosperous and the import and export trade is continuously growing. China's position as one of world's main jewelry manufacturers and consumers has been further strengthened," Research In China remarked in a statement.

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