HI Please review my Below Analyze Argument Essay

[vanioswal07]

Source CAT Exam- 2

ESSAY QUESTION:
The following appeared in a strategy memorandum of an investment company:

"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."

Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.

YOUR RESPONSE:
The prediction of the firm, that the investment in precious metals will be very profitable in the next decade as demand for them will rise driven largely by the economic growth of emerging markets,is not very compelling.
Firstly, there is no data or projections about the economic growth to support the argument.It has not included the possibility of a major crisis such as Recession that can crash the market and decrease purchasing power of people and the demand of such metals.
Secondly, there can be an increase of supply of some precious metals with the increase in demand ,then due to major competition among the firms the price of these metals might fall.
Thirdly,It is talking about exposure to precious metals but only Gold and Silver have proved till now to be profitable so investment in any other precious metal might not prove to be profitable.
Fourthly,it is linking the economic boom in emerging markets to drive the demand of metals up , but there is always a possibility of other sectors like infrastructure, real estate ,IT Sector and various other fields where investment might increase rather than for the metals.

Thus the investment company can attract investors more by doing a thorough research and providing them with graphs and projections for the coming years and by updating them with how the economic boom of emerging markets will increase the monetary value of such precious metals.They should also provide data of how investment in other areas might not prove to be as profitable as for precious metals in the coming years.They should also refer to the price variations of these metals for the last 10 years and the conditions of market that led to such rise.