GMAT Essays (AWA)

"Over the past several years, investment in precious metals, such as gold and silver, has proven to be one of the most profitable investment strategies for our firm. Over the next decade, the demand for these metals is expected to be strong, largely driven by the economic growth of large emerging markets--China, India, and Russia. Thus, our investors are best served by increasing their exposure to precious metals to take advantage of this unique profit-making opportunity"


Hi Guys,
Can anyone please help me identify important assumptions and flaws in the below argument -
I was not able to think much on this.
Thanks.

Hmm. Well first off, just because it was profitable in the past doesn't mean it'll be profitable in the future, despite the demand (what about the supply?).

Second, emerging markets can be volatile, so who knows what'll really happen in the future?

Third, it says "our investors are BEST served" by investing in gold etc. Who's to say there isn't a BETTER option out there?

There's three, anyway.

Where did you get this one?

Laura GMAT Tutor wrote:Hmm. Well first off, just because it was profitable in the past doesn't mean it'll be profitable in the future, despite the demand (what about the supply?).

Second, emerging markets can be volatile, so who knows what'll really happen in the future?

Third, it says "our investors are BEST served" by investing in gold etc. Who's to say there isn't a BETTER option out there?

There's three, anyway.

Where did you get this one?

Hi Laura,
By third point(better options), do you mean to say investors can invest in options other than Gold and Silver ?
I had almost got first two points you mentioned but thought there might be more strong flaws.
I got this from Manhattan.
Thanks.