I am posting one of the mail i wrote to my friends long back about Goldquest. Read my first post regarding this and also a guy's reply for my first post. It will be in the comment of first post.

A legal way of robbing II.

I happened to see a few reply mails for the document legal way of robbing. Here I am pointing out few of the concerns in the mail.

The persons who are into it are reluctant to call it as a MLM, is MLM a sin to do? I feel this is also an MLM only. The difference is with the amount of money and nothing different pertaining to the business which is marketing. If whole thing is a scam anyway, does it matter if it is MLM or not? Why do they excitedly oppose when we call them MLM? Some thought must go into this.

The concern about this business is not whether it is legal or not, the concern is whether it is ethical. I heard that the company is sued. I don’t know why it is sued but some reason should be there for the company to be sued.

My friend pointed out a valid speculation regarding getting permission from the trusts. If they are approaching Tamil nadu government saying we want to spread Tamil by imprinting thiruvalluvar in gold coin, they will not deny it and it is easy to get permission saying so. And of course a committee will be formed to check whether the thiruvalluvar mould is correct. Why it can’t be true in other cases too. I find this as a valid speculation. So the point is, depicting some great person’s coin, endorsed by big authorities does not give credibility. The reason told to them could be very much different from what is told to us to convince us.

Regarding the demand, I heard the same words from them (To make that coin as a rare piece they will destroy the mould) when they tried to brain wash me. I think in most of the cases the no of coins is fixed by them only, because the no is small compared to the effort spent on making the mould.

Regarding the foreign policy ( The foreign trade policy of India registered in 1997 comments that only 8% of the profit made by any company who is head quartered outside India is taken out.), I don’t think any policy is there like that. if they are not able to take their profit first why they have to invest here? If this is not the case there should be many loop holes by which they can take their money out.

Regarding the ways you can make money in this business. Two ways are there. First, by selling their products at a higher margin than what u actually bought it from the company. Secondly, by referring other people to market their products and in turn getting a commission for it. You are getting an eight gram gold coin for 33,000 right. If you are capable of finding a person in India who can get that gold coin for more than 33,000 def you can make money out of it. You can get an eight gram gold for Rs 7000 .

They are claiming they made an investment in Chennai, what investment are they talking about?, what they call as investment is the amount of money they are collecting here and giving a part of that as commission.

The persons inside this are comparing this business with stocks and mutual funds. I don’t find any relation between these two. Most of them into this business don’t know about share market I think. In share market you are giving money for the company to do their business. Let us take some research student have an idea, but he don’t have money what to start an idea. He will try to approach a venture capitalist who can fund the project. If the venture capitalist found this as good idea he will pump in his money for the project. Still if they need more money they will go for the share market. If the business is well established and if they want more money to expand their business they will go for an IPO. Let us take an example of airlines having some 10 flights. It needs money to get 10 more new flights to expand its business. There are many ways to generate the required money. One of the ways is share market where they will sell their stake in the company to one who wants a share in the company. Investing in share market is doing some sort of service to the society because you are giving money for a person to do business and sharing the profit. ‘Stock markets are temples of capitalism. Without it you or I may not have been in our jobs and be earning today’ Please don’t compare this with stocks. It is really foolish.

And one more thing I noticed is they are not doing marketing for the products**, they are marketing only the business saying that you can make money by referring. (**Product is of no value in a country like India, if you try to sell a gold coin for 35,000 means all will try to laugh in different ways. This is the comment I heard from one of my friend.)

I am seeing this typical example given by them. by referring your friend to go to pantaloons you are not getting money. Ok let me clear this point. Why is my friend asking where he can buy a dress? Simply because he is in need to get a dress. What is the need for their product, is it really worth to get a coin for 33,000? Just think about it. It is very clear from their presentation that there is nothing to do with the product in India. Clearly the emphasis is on referring other people and making money.

Let me put my concern about the referral thing, to take your money back there should nine on your left side and nine on your right side totally eighteen. According to them every year people are joining so it will not be an issue. According to their statistics every year five lakh new people are introduced to this business. Out of that forty thousand will be interested to join. Ok let us go by their argument. Let us take this year 40,000 are already into the business, out of which 20,000 will be in last level right. So for getting their money back they should join 20,000 * 18 (3,60,000) people to get their money back. Is it possible. Ok let it be possible. Out of the 3,60,000 there will be 1,80,000 in the last level. For them to take their money back they need 1,80,000 *18 (32.4 lakhs) is it possible to get?? Let us put a small tabulation for this.

Last level	Number of persons needed	New last level
20,000	3,60,000	1,80,000
1,80,000	32.4 lakh	16.2 lakh
16.2 lakh	2.92 crore	1.46 crore
1.46 crore	26.28 crore	13.14 crore
13.14 crore	236 crore	Not relevant

I hope everyone will be clear with the above calculation. The population of India is 100 crore only, where will that 13 crore people will get that money???? It is certain that they will lose that money. The above holds only if people put their efforts to catch other people once in an year, where there are fresh 40,000 people available. If one catches people more frequently, it is equivalent of draining next year’s resources. The doom comes faster and the people in the last level of the trees (who have nobody to catch) come soon. What guarantee is there that you are not one of them? By their claim, there are lot of people in the business already. If so, you have very less opportunity to be at the top.

People just come out and think. You may not know that you are doing robbing. Just sit back and think about it. Think about the money flow. Just think whose money you are getting. It is our own people’s money. Why we have to rob and give it them. We are making others to mock at us.

Here I have explained only about the money flow. I am not pointing out other concerns. Think how others will look at you if they feel you are robbing others money. They will look at you as a very cheap person. I have seen those incidents. Your friends will run away from you with the fear that you will call him to the presentation. Your mind will be occupied thinking whom to refer. 24 hours you will be thinking about this and you have to beg your friends to come for the presentation. Do you want to be in this situation?? Just think before you act. Don’t get carried away by their words. Even if you want to get into this don’t act immediately. Don’t ever swipe your credit cards. Just come back to your home discuss with your friends and act. Just think about the concerns. Act wisely.