By Alex Ritson BBC World Service business reporter

Jewellery is an easier to transport

The gold price has varied by more than $60 an ounce - or about 20% - in recent weeks.

"It's the only currency which is not issued by any individual government so it is internationally anonymous, internationally portable," said Rhona O'Connell from the World Gold Council.

"People who live in politically risky countries or war-torn countries... know that if they need to flee in times of crisis, gold is probably the most safe thing that they can take with them because it's the most readily acceptable form of currency in another part of the world," she said.

A precious metal

Demand for gold varies greatly between regions.

"The vast majority of physical purchasing interest is concentrated from the Middle East right the way through to the Far East in terms of people who buy on a daily basis," Ms O'Connell said.

Buyers in first world countries purchase mostly small investment bars or coins. But jewellery is more popular in places like India and the Far East.

Ms O'Connell said it is important to remember the jewellery purchased in these regions is high grade.

"Jewellery has an investment connotation as well as adornment, whereas in the first world it tends only to be adornment," she said.

On the shop floor

This is backed up by James Aldridge who owns a jewellery store in the centre of London's legal district.

Mr Aldridge said the turbulence on international gold markets hasn't really affected him.

"With jewellery you have a manufacturing price then a gold price and the amount of gold that you see in a pair of earrings or a ring is minimal to the increasing price of gold," he said.

"Unless it goes really astronomically high we will not alter any prices in this shop but I've found in the past... when the price of gold went up people bought more gold for some unknown reason."