Co(i)n job?

Many suspect GoldQuest i
08 July 2003

Chennai: Even as the Chennai city police department is nurturing a doubt that GoldQuest International is operating a money chain scheme, the company is unperturbed and is expanding its operations in the country.

The company is wholly owned by the Hong Kong-headquartered GoldQuest, which in turn is part of the Quest International group (www.goldquest.com).

With the promoters of some direct marketing companies getting arrested for promoting 'pyramid' money chain schemes in the guise of selling products with 'magical' properties, GoldQuest obtained a restraint order from the court against the Chennai police. "This has provided us an impetus," says GoldQuest India country manager Pushpam Naidu.

Clarifies Joseph T Bismark, co-founder of GoldQuest and executive director, Quest International: "Ours is not a pyramid money chain scheme, where the focus is to enrol members on the payment of a fee than selling a product. But we are selling medallions and the members are paid commissions for the sales made by them."

GoldQuest's business plan runs like this. The company brings out limited edition (10000 / 20000 units) 24-carat, 1-ounce commemorative gold coins / medallions of a famous personality. Each coin is priced around Rs 45,000 (including shipping charges), which is nearly double that of the metal's intrinsic value. The company also issues gold coins weighing 10 grams, platinum coins and coins with silver engravings. Designer gold watches, also of limited edition, are also part of the product line.

Coin-buyers automatically become GoldQuest members and in turn can sell the medallions for hefty commissions. "There is no compulsion on the part of a customer to sell the company's products; he can just be content with buying a coin," assures Naidu.