medium · GMAT Verbal

A financial advisor argues that investing in Gold is a safer long-term strategy than investing in the stock market. She points to the fact that during the three worst economic recessions of the last century, Gold prices increased while stock prices plummeted.

Which of the following, if true, most weakens the advisor's argument?

  1. The price of Gold is influenced by the mining output of the world's largest gold-producing nations.
  2. During periods of sustained economic growth, the stock market has historically outperformed Gold by a factor of ten to one.
  3. Many investors choose to hold a diversified portfolio that includes both stocks and precious metals.
  4. Gold prices have occasionally fallen sharply during brief periods of market panic before recovering.
  5. Recent technological advances have made it easier for individual investors to purchase physical Gold.

Sign up free to see the explanation and track your rank →

More GMAT Verbal practice

KomFi Academy — Stop doomscrolling. Get KomFi.

Build your intelligence, anytime, anywhere.

KomFi Academy is a curated training platform with 48,000+ practice questions, 20,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks across the topics serious professionals study: GMAT, LSAT, MCAT, Investment Banking, Private Equity (LBOs & PE math), Private Credit, Quantitative Finance, Financial Accounting, Asset- Backed Securities, Volume Profile Analysis, Order Flow Trading, Market Microstructure, Volume Spread Analysis, Elliott Wave Theory, Volume-Price Analysis, and Public Offering Frameworks.

What's inside

Topics

View pricing · Read testimonials