88Pro Thinking

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Thursday, May 27, 2004

GoldQuest: Think Twice!

GoldQuest International has set foot in Sri Lanka at last and is promising to make people millionaires overnight. Money or anything related to easy money attracts people. Ever wonder how the game monopoly became so popular? I have been to some of the high profile GoldQuest meetings too. However a simple search over Google will give you enough results for you to think twice before getting into it. I am going to present some of them here for you so that you can sit back and think again before you get involved in this Geonology.

The Manila Time, The Hindu, The Kathmandu Post, Kuensel Online, The Hindu all have reported from time to time various stories, world-wide, how different Governments and Law Enforcement Agencies have reacted towards GoldQuest. If this is not convincing enough for you, MLM watch dog, which is a company dedicated to identifying these network activities and warning customer have listed GoldQuest as one of those companies (more evidence).

Here is a tragic story of a Nepalese who got involved into GoldQuest. Of course as they promote in Sri Lanka now, it was once a legal business in Nepal, but when the government realized how GoldQuest drains the foreign currency and ruins the economy, they banned the activity and it was too late for 15,000 people, who realized that their investment and dream to be a millionaire were all gone.

When you make your first payment (partial payment), you get a voucher (you get the coin when you introduce more people and there are a certain number of people in the tree below you, your first reward is taken as the rest of the payment and then only you are eligible to get the coin.), the fact that a paper is being issued in itself is illegal in most countries and such activities have been banned in most countries. Unfortunately such laws are not there in Sri Lanka, and GoldQuest is exploiting it for their advantage.

Moreover, at the end of the day you pay about 46,000 Rs. for the gold coin (which is about one sovereign) where the actual price of the gold sovereign is about 10,000 SL Rupees. People might argue those are rare coins and thus has an antique value, but in simple terms if you look at the foreign currency flow, more money is going out of the country and less value is coming into the country with every transaction, which will ultimately drain the foreign currency of any country and the economy will go to the dogs. If you are lazy to do the math here it is already done for you. Moreover since the transaction is all through the Internet there is no way the central bank can monitor these activities. The worst case is that you have no guarantee that you are getting the gold coin until you have a certain number of people on your tree below you and you received your payment, which is kept back by GoldQuest as your second payment.

In defence of these facts, people might argue that GoldQuest is investing the money back which it is extracting in Sri Lanka in the form of Shares. However compared to the amount of money they are draining out of the country these amounts of shares are just peanuts for them. Nepal gov fined them 1.66 Billion Rupees, for just 15000 members, and GoldQuest is planning to have 100,000 members in Sri Lanka by 2005, and just calculate, at that time how much the Sri Lankan government will fine them when they realize how it’s going to affect the economy of Sri Lanka. As you already know, the country is having a Financial crisis and cannot pay India for the petroleum that they have imported and has asked for credit. Already various government bodies in Sri Lanka have realized these scams and starting to issue warnings and I hope it will not be too late before the operation is completely seized.

Think for a second, if you are going to sell the country for money, and then you are worse than a person who sells their body for money.

Update: If you can read Sinhala here is a excerpt from Divayina Weekly news paper.

Update(20-June-2004): Elusive gold drains forex

Contributions for the above information were also provided by Tamim.

posted by 88Pro / Thursday, May 27, 2004

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