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Expert replies
by alltimeacheiver » Wed May 04, 2011 12:51 am
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."



The author in the argument has concluded that investors are best served by increasing their exposure to precious metals to take advantage of this unique profit-making opportunity is faulty. The author has made this argument on various assumptions which are not suggesting as an evidence in respect to the autor conlcuion. Below are some of points which weaken the author reasoning.


Firstly, the author has said that "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". This assumpition is not provided with relavant evidence which can support to the author conclusion. for example the author has not provided the name of the firm and the number of years fior which company is being trading for gold, sliver. Without absence of previous years data and analysis report, the author cannot justify this statement.


Moreover the the author assumption or projection related to future without absence of previous years data that company will likely to make more profits is also unstable. Author needs to provides some base like sales, and revenue figures etc in order to make projection for future.

Secondly, The autor has assumed that that countries like china, India and russia will be the most likely consumers of there metal is also weaken . For example Recent report of Business week magzine that China, India and russia are the biggest expoter of precious metals like gold, silver. Then how can these big producers likely to make investments in these products. More over the argument is not being supported with the location of firm or county in which this form is established. without evidence of location the author can make infrences that prifits going to increase in future is seems faulty.


Therefore it is being concluded that that author the author emphasis of that investors are best served by increasing their exposure to precious metals to take advantage of this unique profit-making opportunityis unreasonable. it is not supported by the relevant evidence of datas & statisticts figures to know about past and present sales, secondly location of a firm, thid china, Inida, russia wiil be highest consuptions of thier matals by above points. It is strongly recommend to the author that for strong conclusion we need supportive and refence material to justify the argument
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Source: — GMAT Essays (AWA) |

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