In a poll conducted in eight cities including Shanghai, Beijing, and Guangzhou, 11.8 percent of respondents said they will spend more than 5,000 yuan (US$629) on gold jewelry in the coming year while the figure three years ago stood at a mere 2.1 percent.

"There is a trend for more high-end jewelry consumption in China as more people are spending higher amounts on gold jewelry and the price of the yellow metal is rising," said An Qiongwei, an association official.

More than 46 percent of respondents said they bought gold jewelry in the past year, reported the survey, which was posted on the association's Website yesterday.

Gold bullion prices in Asia, London and New York passed US$700 an ounce in May, the highest level since 1980. Prices dropped in June but later showed signs of a rebound.

The survey also indicated that 24-carat gold jewelry still dominates the Chinese market as more than 60 percent of the interviewees said they will opt for higher-purity products over 18-carat gold.

The 18-carat segment, whose prices are set by the piece, is less sensitive to fluctuation. The market share of the 75-percent pure gold jewelry rose to 15 percent in 2005 when the industry began heavily promoting 18-karat gold, according to the World Gold Council.

Chinese have shown a traditional fondness for 24-carat gold jewelry, or 99.9 percent pure gold, as a safe haven against inflation.

The retail sales value of gold in China gained 40 percent due to higher gold prices in the second quarter. Sales in terms of weight slipped 2 percent to 56.3 tons in the same period.

(For more biz stories, please visit Industry Updates)