Gold prices in China have been on the rise led largely by 3 straight days of gains in the price of gold futures in New York. And with Chinese authorities confirming a big boost in its reserves of gold, many think this precious metal is now a good option for investment.

Gold prices in China have been on the rise led largely by

3 straight days of gains in the price of gold futures in NewYork.

The cost of China's investment gold bullion has increased by around 5 percent, because of the continued rise in international gold prices.

Li Xiaodong, Deputy GM of China Gold Group Marketing Co. said "The price for investment gold bullion is related to the gold price of the Shanghai Gold Exchange. So the price has risen from 201 yuan per gram to 211 yuan."

Although the price is rising, investors are becoming increasingly enthusiastic about this investment channel, especially after the news that China has increased its gold reserves.

One consumer said "I heard China has increased its gold reserves, so I think there is still space for further price rises. I bought some gold for investment."

Li Xiaodong, Deputy GM of China Gold Group Marketing Co. said "Our sales jumped from 20 to 30 kilograms per day to 110 kilograms a day recently."

The price of gold jewelry is still stable at over 220 yuan per gram. Sales staff say they expect to attract more buyers during the May Day holiday.

The Shanghai Gold Jewelry Association plans to issue 50,000 coupons, which can be used to buy gold products in 7 large gold stores.

Xu Wenjun, Secretary General of Shanghai Gold Jewelry Association said "This is a pilot move for us, to boost consumption and enlarge domestic demand. The 3 percent discount, is small, but it's very useful. It can save money for customers buying gold."

The gold coupon scheme is on a trial basis and coupons will not be issued to the public yet.