11th Nov 2006:
Jus happened to attend one of the so called "business presentation" of GoldQuest. Thanks to the pressure of my neighbour.
To become a member, you need to buy a product from QuestNet which starts with min price of about Rs. 30000. Most of them prefer gold coins. This means you buy a gold coin of 8gms for Rs. 30000.
While ICICI bank, HDFC bank and many other banks offer you pure gold of 8gms at much cheaper price.
During presentation itself I had doubts like while 8 gms of gold is say Rs.9000 (Rate during Dec 2006 in India - ornamental rate, non-ornaments like coins would be simply more or less same price as current gold bullion price), and add some Rs. 5000 to what they boast as work they do on the coin. Still its under Rs.15000. But I have to pay Rs. 30000 to get a coin which I never needed.
And from the e-bay postings, I see such gold coins are never bought...I see a lot of items expired the last date.
I'm always against investing in gold. I prefer mutual funds or shares.
But still if I want to diverse my portfolio and invest in gold, I may do it at worthy price and not at price which would be some 20 years from now.
Some of the GQ member friends might boast that I should not view it in investment point view but rather as numismatic view.
But tell me frankly, how many GQ members are collecting coins for that purpose ??
And the basic boasts of presentation was "little investment and great returns.". So the GQ team itself is viewing it as investment only and not as numismatic view. If they say otherwise, they would poorly contradict themselves.
The first step in investment basics is returns are directly proportional to investment. If there is something like less investment and more returns, always suspect it.
As I read from other reviews GQ has failed miserably in small countries like Nepal, Srilanka and Philipines. Since India is second largest populated nation, it takes its time to attain saturation.
But it will, one day.
For those who are about to invest, just think about this:
Who reviewed against GoldQuest would gain nothing, whereas those who are supporting QuestNet would gain (or probably trying to gain) another "scape goat" in their tree.
There is definite end to the tree and someday the last set of leaves would be deprieved of their investment.
=> For those who have conscience:
Just think that if your left or right tree stops at some point, what happens to the last few members who invested Rs.30000 for a 8gm gold coin, which when sold would give them back some less than Rs.9000....Don't you think that you have gained your commission by deprieving the low leaves ??
Do you still need to gain by fooling others ??
No one can become rich in short time unless they cheat others.
You end up cheating others without your knowledge.
=> For those who do not have conscience.
There are some people who say, "I dont care" if someone losses. As far as I gain its nothing. It always happens in business. Think twice....
Is it not possible that you might yourself end up as last leaf ??
Its there in India for quite sometime and may burst at anytime.
You might as well end up as last leaf. So think twice before investing.
12-Dec-2006:
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I would like to add one more point:
In the business presentation, they say, traditional business spends around 80% in Marketing and Commissions. But whereas QuestNet would save that 80% as a reward for referrers.
If Coke's production cost is say Re.1.00, when it reaches end customer, its price is Rs.10.00. Rs.9 is spent in marketing and commission. But what QuestNet would do is save this Rs.9.00 and share it with customers who refer other customers.
Nice - huh ?
But what is really happening is QuestNet is selling its product at twice or thrice that of the open market value....
i.e. QuestNet would sell Coke at Rs.30.00 whereas it is available for Rs.10.00 in open market.
Howz this ?? :))
So just think how many more would buy a product twice or thrice the price that is available in open market ??? They think everyones fool ?? But atleast they could find some...
One of the comments (Ofcourse I'll receive a lot against my review) I received is that QuestNet not only have gold coins - It has travel package and lot other products in the offing.
But, is it the same price as open market value ?? Think again...
And how many is going to buy it from you with that huge price ??
Some 10 years back, there were lot of guys in Amway network in my neighbourhood. But now none.
Absolutely none.
I used to ask them what happened to (so called) business?
Invariably the reply would be "I stopped".
Infact Amway has FMCG (Fast Moving Consumer Goods) in the offing and with much competitive price as that of open market.
If a network such as Amway could fail, think of this stupid offer from QuestNet.
Hope that has answered the comment by sinha.kumar.aditya.
Think...Think...Think...
