The price of gold in both world and domestic markets has been on the up since last month.

Gold recently surged past 700 US dollars-per-ounce in global markets, hitting its highest level in 16 months. At the Shanghai Gold Exchange, the price of pure gold closed at 170 yuan per gram, with trade in gold jewelry at fever pitch across China.

At one jewelry store in Beijing, gold is selling at 195 yuan per gram, up from 188 yuan just a month ago. But this hasn't put a damper on keen buyers.

A customer said "Both yellow and white gold keep their value after they're bought. So buying these, even if I just wear them at home, is a worthwhile investment."

And it's for this reason that rising prices seem to be attracting, rather than putting off buyers. The recent Golden Week holiday saw people buying gold bars either for investment, or as gifts for friends and relatives. Total sales volume over that period in Shanghai's gold jewelry market hit a record high with 237 million yuan, a rise of 34 percent from the same period last year. This trend is also being seen in other big cities. 

Guan Qiang, Vice GM of Beijing Caishikou Store said "The sales volume in our store has increased more than 120 percent since September of this year, compared to the same period last year. Gold sales have hit as high as 60 million yuan."

High prices are even drawing consumers into stores to sell their jewelry back to the stores.

Another customer said "This was bought last year. It was 140 yuan at that time, but it's now worth 180 yuan. It is worthwhile to sell now."

But gold sellers are advising caution, and recommending other options.

Liu Ying, Manager of Gold Department of Beijing Guohua Store said "We think it's better keep your gold as long as possible if you don't need the cash urgently. If you are not satisfied with your jewelry, you can come here to exchange it for other items with the same value."

But for some, this may fall on deaf ears. With gold prices still on the rise, the eagerness to make money could mean short term profit motives winning out over longer term investment strategies.