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24 Jun 2018, 19:53
Kudos
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“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.
Ans: The argument presented above in a quick glance looks good and the firm based it's assumption that the investment in precious metals like gold and silver proved to be the higher profit generating investment strategies over the past couple of years.However, argument fails to substantiate the underlying assumptions supporting in favor of investment in gold and silver,etc.The market of precious metals has volatility and gets affected by several situations like monetary policy,inflation,low demand.
There is no supporting evidence stating that how China,India and Russia will have excess increased demand for these metals.
Author states that their investors are best served by increasing exposure to precious metals but what if ,the investors prefer to invest on low risk market like debts,bonds and debentures.Moreover,investors might will to maintain a balanced portfolio by investing proportionately little on gold and some on equity markets and mutual funds.
Henceforth,the analogy given by the author lacks a complete sense of fullness and just because there is full demand for precious metals doesn't means that each investors will go for investing in gold,silver,platinum and
other precious metals.
In a nutshell,the author failed to compare past investments and correlate it properly by showing how this particular investment generates more return when other types of investments available in market are equally capable of generating higher returns.The argument presented here in is based on weak assumptions and to be precise it reflects the sense of faulty generalizations.
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.
Ans: The argument presented above in a quick glance looks good and the firm based it's assumption that the investment in precious metals like gold and silver proved to be the higher profit generating investment strategies over the past couple of years.However, argument fails to substantiate the underlying assumptions supporting in favor of investment in gold and silver,etc.The market of precious metals has volatility and gets affected by several situations like monetary policy,inflation,low demand.
There is no supporting evidence stating that how China,India and Russia will have excess increased demand for these metals.
Author states that their investors are best served by increasing exposure to precious metals but what if ,the investors prefer to invest on low risk market like debts,bonds and debentures.Moreover,investors might will to maintain a balanced portfolio by investing proportionately little on gold and some on equity markets and mutual funds.
Henceforth,the analogy given by the author lacks a complete sense of fullness and just because there is full demand for precious metals doesn't means that each investors will go for investing in gold,silver,platinum and
other precious metals.
In a nutshell,the author failed to compare past investments and correlate it properly by showing how this particular investment generates more return when other types of investments available in market are equally capable of generating higher returns.The argument presented here in is based on weak assumptions and to be precise it reflects the sense of faulty generalizations.
17 Jul 2018, 05:04
Kudos
Bookmarks
As per the argument, if the investors increase their exposure to precious metals, they can take advantage of the unique profit making opportunity. Based upon the premise, we can say that this argument is flawed.
Firstly, concluding something from a certain set of expectations can not necessarily be true. The argument assumes that the demand for these precious metals is expected to be strong. But, it does not take other factors such as inflation, less demand and recession into consideration. It is not necessary that
Secondly, it assumes that the growing economic growth in the markets of China, India and Russia which necessarily lead to people buying more precious metals. People can even invest in other things, apart from from gold and silver.
Moreover, there is a use of ambiguous terms in the premise, for example, the use of the phrase "most profitable investment strategies". The premise fails to explain the other strategies which were implemented in the firm.
Lastly, the argument is too strong when it states that "our investors are best served by increasing their exposure to precious metals".
The argument can be strengthened if it says that the investors can be served in a better way if their exposure to precious metals is increased.
Other factors such as the lack of demand and the interest of the customers can be taken into consideration.
Moreover, before making a claim about the best strategy in investment, other strategies can be talked about.
Firstly, concluding something from a certain set of expectations can not necessarily be true. The argument assumes that the demand for these precious metals is expected to be strong. But, it does not take other factors such as inflation, less demand and recession into consideration. It is not necessary that
Secondly, it assumes that the growing economic growth in the markets of China, India and Russia which necessarily lead to people buying more precious metals. People can even invest in other things, apart from from gold and silver.
Moreover, there is a use of ambiguous terms in the premise, for example, the use of the phrase "most profitable investment strategies". The premise fails to explain the other strategies which were implemented in the firm.
Lastly, the argument is too strong when it states that "our investors are best served by increasing their exposure to precious metals".
The argument can be strengthened if it says that the investors can be served in a better way if their exposure to precious metals is increased.
Other factors such as the lack of demand and the interest of the customers can be taken into consideration.
Moreover, before making a claim about the best strategy in investment, other strategies can be talked about.
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