With China facing an economic slowdown and many questioning whether or not the nation's government data presents a reliable picture of just how bad the situation is, metal prices have fallen to multi-year lows.

China (FXI, quote) is responsible for about half of the global consumption of base-metals like iron ore, aluminum and copper. The International Monetary Fund has warned that China's industrial production affects nearly 60 percent of the variance in metal prices.

With such a gloomy outlook, most investors are shying away from metals investments despite worries about volatility in equity markets as well.

What About Precious Metals?

Precious metals have also been under pressure recently, though some analysts believe they're a safer bet than base-metals at the moment. The reason precious metals (SLV, quote) are better equipped withstand some of the economic turmoil happening in China (ASHR, quote) is that they depend less on industrial demand than many other commodities. Many expect to see demand for gold (GLD, quote) increase in the coming months as low prices drive consumer appetite upward.

Golden Protection

Many investors see the recent slide in gold prices as an opportunity, especially those who believe that markets are overdue for a correction. Gold has historically been a safe haven when share markets slid lower, something some say is inevitable once the Federal Reserve begins raising rates.

Construction And Manufacturing Tailwind

Low commodity prices have wreaked havoc on countries that rely on exports, but for sectors like construction and manufacturing, the commodities slump has been a blessing. Lower prices means higher margins, something that manufacturers can use at a time when economic hardship is weighing on their operations.

Content courtesy of Benzinga written by Laura Brodbeck, Benzinga Staff Writer