Kingold Jewelry, seeking to double its share of China's gold market over the next three years, is stepping up production, Bloomberg reports.

Kingold saw a 34% increase in its net income in Q1 2011 and expects its net income for the 2011 fiscal year to reach $32 million.

However, the company isn't limiting itself to gold jewelry. Chairman and CEO Jia Zhihong said that as gold prices continued to rise, people would seek investment havens against inflation. Therefore, he said, Kingold would ramp up production of gold bars and coins.

According to the World Gold Council, China consumed 580 tons of gold in 2010 – 400 in the form of gold jewelry. The China Gold Association reports that the country's production of gold bars rose to 341 tons in 2010, an increase of 8.6%.

At the beginning of May, gold hit a record price of $1,577.57/ounce and according to a Deutsche Bank assessment could go as high as $2,000/ounce by next January.