BEIJING(BullionStreet) : Gold sales in China especially jewellery items scaled new highs after the first week of sales in the ongoing Dragon year.

According to China's Commerce Ministry data, gold,silver jewellery sales rose 57.6 percent in the first week at Caibai, one of Bedijing's leading gold retailer.

Steady increase in jewellery sales were reported from all across China with customers favoring New Year-themed gold bars, gold ingots and other types of Dragon-themed jewelries.

During the New Year, most Chinese prefer to buy to preserve or to present as gifts on hopes that it will increase in value and not to be impacted by inflation which is climbing up in the nation.

This year's best-selling precious metals products for the Chinese New Year have two characteristics: one is the theme of dragon, and the other is rich cultural content and exquisite traditional craftsmanship.

The Dragon Year Gold Bar that was put on the market in late November is a star product whose demands exceed supply, with thousands having been preordered one year in advance.

The Dragon Year Gold Bar has been issued for years in succession, and it is still greatly sought after in the market this year.

This time, China Gold Coin Incorporation (CGCI) issued the Dragon Year Gold Bar in five sizes, namely 1,000 grams, 500 grams, 200 grams, 100 grams, and 50 grams, each issuing 350, 1,000, 1,500, 16,000, and 24,600 pieces respectively, with a purity of 99.99 percent and a total issuing weight of 3,980 kg.

The Chinese New Year is one of the largest celebrations and lots of gold is bought as presents during the time, analysts said.

Observers said value of gold sale in China during the New Year gold is likely to go up by 70 percent compared with prevous year's 61 percent.