Answers to Objections raised on internet

Rameshbabu Velidi

Thanks Sydney Pereira for providing the necessary info in response to those objections raised by the same single newspaper correspondent.
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What is the truth in the reports on net?

Response to Negative article on Goldquest.


FIRST ONE
Chennai police end their quest, arrest three GoldQuest officials
Venkatachari Jagannathan 25 August 2003

In reply let me say that the company in question is "Questnet Enterprises India PVT LTD" and not Goldquest as stated in the report. Goldquest does not operate in India. It is one of the companies of Quest International, and it owns 51% of M. H. Meyer's mint in Germany which makes the coins. Questnet is merely the marketing agency for the coins. So for the report to say that three officials of Goldquest were arrested is Bullshit. If this report can make a major error here, the rest of the report is also suspect.

The second point I would like to make is when this company started, a politician just got elected and allegedly realised the opportunity to make money. The person allegedly wanted 25% of the company shares which the company refused to give here. At that point of time you could buy a coin on installments, and it at no point of time cost only Rs 16,800. It was somewhere between 23,000 and 25,000 for a coin. The powerful politician allegedly sent three cronies to purchase coins. They took it in installments, paid Rs 16,800, and when they did not get their coin, allegedly launched a false police complaint. There was never a time that you had to get 10 people to join before you got your coin.
The complaint was that the company refused to give the Gold Coin even after paying the money.The police then arrested three directors of the company and the company was allegedly pressured to give the shares. When they refused a court case was launched against the company and directors. Mrs. Nalini Chidambaram, the present Finance Minister's wife defended this company in the Madras High Court, and the case was thrown out, and the directors released. She has now been appointed Legal Councilor to the Company.
From what I have told you can realise how this report has been drafted to fool people.

Here are the points that I would like to stress.

1. Why have they given the wrong company name?
2. What are names of the people who made the comp-laint?
3. Who are the directors who were arrested?
4. Who was the senior police officer who filed the chargesheet?
5. What were the exact contents of the chargesheet?
6. How was it refuted in court?
7. Last, what was the judgment given in court?
When you have all the answers to the questions raised above, you can make your own judgment and disbelieve the half truths in the report.
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We now come to the second article which I will reproduce here below.

Second one

Co(i)n job?
Many suspect GoldQuest is running a money chain scheme, but the unperturbed company is busy expanding operations
Venkatachari Jagannathan 8 July 2003

Response to this report

Here again there are plenty of mistakes in this second report.

The company is again mentioned as Goldquest when it should be Questnet India pvt ltd whome we all deal with. The company does not bring out one ounce coins in India. They are normally 6 grams and valued as one UV or Unit Value. There are a few coins of UV 1.1 to 1.4. The coins available in India are only very few from the Goldquest International Catalogue. From Goldquest International you can get coins of upto 50 grams or five ounces.
Also let me tell you that a pyramid is one of the most reliable structures in the world. Every large or small company resembles a pyramid, why even the Government of India is structured as a pyramid. So what is so bad about a pyramid. They are not talking about a pyramid being illegal but what is called Pyramiding that is illegal. Questnet is certainly not a pyramiding operation, as pyramiding is banned in most countries of the world including India.

If this were not so, the court in Chennai would not have put a restraining order against the police. Again the number of coins made are not 10,000 to 20,000 per coin but 2999 to 9999 per coin.Next the purity of the coins. It can certainly be tested, but not in the old way by rubbing it against a stone and checking the colour. This will damage the coin slightly, and the value will go down. Also the coin is so soft it can be dented just by dropping it. Remember the value of ny numistic coin is highest when it is without any flaw.

Any modern jeweller will have an electronic purity checker which will tell you the carat value of the gold, and the proof scale. Several of our members have taken their coins to Tanishque the famous jewelers in Mumbai and have had their coins checked at 24 carats and 999.9 fineness which is just what the company states.
Also the coin should not be touched by your fingers as your fingerprint impression can appear on the coin, and it will have to be sent back to Germany for polishing. But using fine cotton gloves they can be held by your fingers. If you can see the QI DVD released in 2006, they show how the coins are made at the Meyer's mint, and at the end you see a woman worker checking each coin using gloves, before they are packed into their plastic boxes for transportation.
Again the time taken to get your coin in Mumbai is eight weeks and not three weeks as the report says. When you are making 9999 coins of a particular design, you do not make them all at one time. They are made a few hundred at a time. Even Meyer's mint will not be able to make all coins upto their full number, rather they will not have that much gold in stock. The coins when made are first sent to the Hong Kong head office. From there, the coins for India are sent to Chennai. They take time to pass through Customs, and from there are sent to Mumbai and then distributed by Blue Dart couriers. All this takes roughly 8 weeks.

Let us next talk about the price of the coin.

The numismatic value of the coin is set at almost five times the price of the gold, and not two times as your report says. This is because the company gives back as commissions 60% of the numismatic price of the coin. Let me give you an example. The price of potatoes in Mumbai is on an average about 6 to 8 rupees a kilo. If you buy one of these fancy packets of potato chips of 100 grams it will cost you 10 rupees. You don't think about it. The potatoes, the processing, and the packet should not cost more than 2 rupees. Say another one rupee tax. Cost to the company 3 rupees. Can I ask you why are you paying 10 rupees for that packet. Where is the money going? The money is going to profits of the company, distributors commissions, dealers commissions, retailers commissions, and large payments to guys like Sharukh Khan, Amir Khan, you understand what I mean, and to the advertisers.

Do we have distributors, dealers, retailers, filmstars, and any advertising in Questnet? Certainly not. All this money saved is paid as commissions to the IR members. That is why the coin price is structured as any other product would be, but here you as a member can benefit and reach a goal of 3.5 crores per year. It is not impossible.
Next, not all coins are legal tender. The reserve bank made two numismatic coins of a 100 rupees and 5 rupees in 2002. These were not legal tender, and not made of Gold or Silver. They were normally made of nickel and copper and a few other metals. The Government sold them for 1099 rupees a set. More than ten times the value. Also Meyer's mint in Germany makes legal tender coins for many countries of the world, including Australia and the United Kingdom, and is well respected. Please visit the site to know more. As far as the appreciation of the coins is concerned, you have to sell it to an avid collector who really wants the coin. You will get a great deal more than you paid for it if you wait and find the right buyer. The thing is that you invest 30,000 in the company, and in 8 weeks receive an asset which is a numismatic coin. Even if the company folds,winds up, you still have your asset which will fetch you a good price as I have mentioned above. The company's turnover this year is poised to cross one billion dollars, and the very idea of it folding is ridiculous. So you will always have a good business opportunity, and can make a great deal of profits, upto 3.5 crores a year.

You will fail only if you get disheartened and stop working.
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