Earlier this year, Chinese housewives snapped up 300 tons of gold in the span of just three weeks after hedge fund managers on Wall Street drove down prices for the precious metal with aggressive short positions.

Many observers in China and elsewhere were convinced that these bargain hungry matrons were keeping gold prices buoyant as Western financial gurus were trying to profit from the metal's decline.

But despite their formidable collective buying power, China's housewives haven't turned the tide on gold.

Since the end of 2011, gold prices have been creeping lower. Gold now trades around $1,300 per ounce in the global market, while prices at the time of China's buying frenzy were above $1,500. And since much of the gold bought by China's matriarchs was in the form of finished jewelry, the added price of the design and craftsmanship that went into these items means that it could be several years before these "investments" start appreciating in value.

The author is Chen Sijin, a senior consultant at Royal Bank of Canada's Risk Management Department.

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