Slowing Economy of ChinaThreatens Commodity Market

Beijing - Commodity markets will receive intense pressure by China's economic slowdown. Price of iron ore, copper, nickel, gold and others will be weakened if China's GDP is below 10%.

When attention is drawn to the world market crisis in Europe. China's economic slowdown is no less alarming. China's economy depends on capital expenditures tend to be stable and has a strong effect miltiplier to the economy.

Perekonomin China consists of many sectors and I think some sectors may already be in recession. Growth will be lower and potential contraction with no growth at all, "said Marc Faber, The Gloom of the institution which lowers Boom & Doom report, as quoted from cnbc.com.

While the recession in Europe affects 1-2% of GDP. If China's economy listless then have a wider impact with global scale.

With a threatened commodity markets, it will undermine the natural resource-producing countries. In this group consists of countries Brazil, Australia, Middle East and Africa.

According to Faber, gold prices will find support in the short term and memengah. Sentiment of central banks in Europe and the U.S. to print more money as an effort to shore up their economies. He advised investors to avoid the Australian dollar and Canadian dollar. And natural resource-based stocks.

Suggestions for future investment by diversifying the portfolio into four sectors. Investments are still attractive as gold, real estate, stocks and cash and bonds.