Gold Investments

I was in Chinatown recently and noticed that the gold shops were full of people rushing to buy gold! I know the Chinese have always had lots of faith in gold and often buy gold bullion piece, gold jewellery and gold bars. Keeping gold instead of stocks or cold hard cash them a whole lot more valuable than keeping cash which is subject to inflation. With the way the recent gold prices have been heading, I can't help but agree with this age old investing wisdom and its just a pity the prices are now too high to consider something like that. I do have some gold jewellery but I find that yellow gold does not suit my skin well and has a tendency to look tarnished after a while. White gold is much nicer but unfortunately does not fetch as much value so it looks like I don't have much choice but to keep my investments in non-gold items! What about you?