Caibai, a famous gold jewelry company in Beijing, has taken advantage of the liberalization to extend their business scope. Originally focused on retail, they’re now engaged in every step of the way, from purchasing raw materials, to manufacturing, to point of sales. They explain why they've changed their strategy.

Wang Chunli said "Before the establishment of the gold exchange, we can only buy completed gold jewelry from manufacturers. However, after the establishment of the exchange, we can buy gold from the exchange and then process the metal into gold jewelry. It saves us a lot of cost, and more importantly, we can now control the quality in the whole process."

Along with the fast-growing mainland economy and the rising purchasing power of the middle class, people's taste for gold jewelry is also evolving.

Emily Li said "There are a lot of changes in the Chinese people's buying pattern. Consumers used to buy pure gold. Now they are more demanding. They are not satisfied by just the material, they also want fashionable designs."

To meet consumers' growing desire of cultural and artistic value, jewelry merchants are stepping up their design efforts. Elements of Chinese designs are becoming exceptionally popular, and have been embraced by both local and overseas jewelry brands.

Wang Chunli said "I think our jewelry products fully embody Chinese traditional cultural. For example, we have the gold Ruyi(which means as you wish), or some auspicious presents used for house protection. Many foreign guests come here to buy such items to take them home, or as gifts for their friends and family."

As the country opens up and people have more and more disposable income, other newcomers such as diamond and platinum are also gaining popularity here in China. But gold jewelry still represents the largest share of overall jewelry sales. And will likely continue to do so, for the foreseeable future. That's because you can't really fight thousands of years of tradition- a tradition where gold, no matter in what form, represents the ultimate gift and good fortune for Chinese culture.

(CCTV November 11, 2008)