The price of gold hit a record high on international markets earlier this month, setting off a dramatic rush by consumers to buy their own bit of bullion.

Although the price has eased off somewhat since then, investors and gold producers seem confident that the price will continue to rise over the long term.

That's led to some dramatic increases in gold production, particularly in China's Shandong province.

The mines in that eastern province -- and many others like them -- have helped to make China the world's largest producer of gold. In just a single decade, production has shot up 70 per cent.

A spokesman for one mine says that's just the beginning. "We're hoping the price will continue rising," he said through an interpreter. "We plan to increase our output even more."

Driving the price and production spike is a voracious global demand. China, the world's biggest producer, has also become the largest gold consumer.

Markets in Chinese cities have become frenzied places, where the precious metal is bought and sold in bars, as jewelry or statues.

On May 12, gold peaked at more than US$1,249 an ounce. Although since then, is has fallen to $1212.20 an ounce on Friday, gold fever has become a global sentiment, with consumers buying it not just in hopes of making a profit but also out of fear of the unsettled economy.

There's been great volatility in international markets, driven partly by high debt levels in some European countries. That has pushed down the Euro and, because of global fears the crisis could spread, it has pushed down stock markets everywhere.

And when investors are afraid, they often seek refuge in gold.

That has led some entrepreneurs to extraordinary lengths to accommodate them.

German businessman Thomas Geissler has installed the first of what he hopes will be many automated tellers that dispense gold like soft drinks.

"The function of the machine is quite easy," he said. "You put cash in or later on credit cards and you take your gold out.

With a report by CTV's London Bureau Chief Tom Kennedy