You are welcome to my Karatbars review.
I am sure you are here to find out if you can make money with Karatbars.
Doing your research about the online program is excellent. This was how I discovered how to transform my ideas and skills into a full-time earning.
Is Karatbars a legitimate or a scam business? Are you sure Karatbars Is legal in your country?
Although we are moving into the era of digital currencies, Gold is still significantly valued by people.
People would instead hold their investments in Gold because they can trust that its value will be consistent.
So while other Multilevel Marketers come to you selling health care products and supplements, Karatbars Agents sell gold bars.
While owning Gold might seem like a great prospect, I m sure you took your time to read my review to find out if Karatbars is legit or NOT.
Thank you for joining me, I will be doing a detailed and systematic review on what Karatbars does and how this company makes money, and you will find out if it is worth your money or not.
Karatbars at a Glance
Product Name: Karatbars Investment.
Founder: Harald Seiz (2011).
Price: From $135 (bronze package) to $800 (gold package).
Product Type: Gold Investment MLM
Best For: People who want to make money trading gold and commodities
Summary Review of Karatbars
Karatbars International is a legitimate Multi-Level Marketing company that specializes in selling small gold bars and gift items in gold bullion.
In addition to this, they offer members business opportunities to join and earn with them.
Though Karatbars is legit, I will not be recommending this company to you because of scam and Ponzi Scheme warnings from regulators of some countries such as Germany, Namibia, South Africa, Canada, Netherlands and currently under investigation in Florida USA.
People are advised not to invest in Karatbars International products to avoid being scammed.
Also, it is difficult to make money with Karatbars because their gold price per gram is costly than the global market price, as observed online. It will be challenging to get their product to resell and make profits.
In this review, I will examine the claims of Karatbars, its products, and the secret nobody tells you before you invest your money in this company.
What is Karatbars?
Trading bullion can be a lucrative way to invest your money and a great way to diversify your risk. Many traders prefer to balance their investments in the form of gold bullions.
This is because in cases of global economic crisis, gold relatively performs well.
Bullion is a bulk quantity of precious metal, such as gold, silver, platinum or palladium measured by weight and then cast as bars or ingots.
Emerging economies usually experience long periods of economic and political instability.
During this period, citizens and investors alike experience devaluations in local currencies and are less likely to trust fiat currencies. For this reason, gold is an attractive failsafe.
Karatbars is a legitimate MLM company founded by Harald Seiz in 2011.
The company which is headquartered in Stuttgart, Germany offers its business opportunities across 70 countries and has plans to expand to over 194 countries worldwide.
Karatbars’ main product is the Karatbars Classic Cards which is gold bars of 1-gram gold embedded in a card.
These cards are Karatbars' ways of providing some insurance against economic ups and downs. Since these cards are of smaller weight, they are easy to carry and are designed to appeal to customers.
Karatbars also has a product called the Collector Karatbars, unlike the Classic Cards the Collector Cards have a gold nugget embedded in them. Karatbars also offers gold in 1.0 Gram, 2.5 Gram, and 5.0 Gram Gold.
Karatbars present you with the kind of opportunity anyone would want to grab with both hands! But be careful, as easy as they make earning a passive income with Karatbars look, all that glitters is not gold!
How to Join Karatbars (The Cost to Join Karatbars)
Membership of Karatbars is open to anyone.
In as easy as three steps, you can sign up to be a member. However, Karatbars offers three pathways into its affiliate program.
You can either pay 135 USD to buy into Karatbars’s Bronze package, 350 USD for its Silver package or you could spend 800 USD to buy into its Gold package.
With any of these packages, you can earn with Karatsbar. This is your signup fee; you will need to pay for shipping and buy your supplies.
Who is Karatbars for?
Karatbars affiliate program is best suited for people who are familiar with gold and commodities trading, and who are seasoned traders of these products.
If you do not have this experience, I’m afraid this is a wild goose chase for you, one that will cost you.
How to Make Money on Karatbars?
Gold is considered to be a universal investment and is accepted anywhere. Also, it can be easily converted during an economic crisis.
Your aim when purchasing bullion is to buy when prices are low and sell when prices are high.
You earn with Karatbars through:
- Sales dependent commission – direct, unilevel, and binary.
- Karatsbars Gold Fund.
- Recruitment-based bonuses and incentives.
Karatbars Compensation Plan
The Karatbars compensation plan revolves around a unilevel and binary organization.
Its unilevel organization creates a new leg underneath you for each member that you recruit into the Karatbars.
The company encourages you to hire at least two other people who become your downlines. These downlines are also encouraged to recruit two other people in turn.
You earn the following through the 7 Karatbars Uni-Level Ranks each month
- Supervisor – 200 Points
- Bronze Supervisor – 500 Points
- Silver Supervisor – 1250 Points
- Gold Supervisor – 2500 Points
- Bronze Manager – 4000 Points
- Silver Manager – 6000 Points
- Gold Manager – 9000 Points
For the Binary commission, affiliates earn from their downlines in a binary form.
A member receives a certain amount from their downlines if their team achieves 50 units on the right leg from sales and 25 units on the left leg.
The compensation plan for Karatbars is complicated, poorly explained and involves so many unnecessary levels to find out more about its compensation plan.
You can download a comprehensive Karatbars Compensation Plan PDF here or watch the video below.
Karatbars Support and Customer Service
Karatbars International can be reached at its physical location at Vaihinger Straße 149A, 70567 Stuttgart, Germany.
The company also has email support email@example.com, and since its agents are provided with landing pages, they may also have to act as their customer service providers.
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How Does Karatbars Make Money
Karatbars is an eCommerce company that runs its affiliate program in the Multi-Level Marketing model.
So, how Karatbars makes money as a company, they sell gold coins with the promise of keeping the gold for their investor; why you have the gold coin saved with you like a crypto coin.
They make money off their buyers from the proceeds of virtual coins sold.
Many financial regulators have already called the company out like a pyramid scheme.
Is Karatbars a Ponzi Scheme? (Major Red Flags)
Yes, Karatbars is a Ponzi scheme.
Karatbars is a Ponzi scheme because the attraction of every new entrance to Karatbars is not the Gold card, but their desire to make money via the invitation of more members to Karatbars.
They earn a commission for the introduction of more people to Karatbars instead of from the sales of Gold Cards.
But what is a Ponzi scheme?
A Ponzi scheme is a sort of fraud that lure people to invest in any scheme or business such that they reward the earlier investors with funds from the recruit to the system.
The scheme makes the people and their victims believe that they are making profits and that the benefits are coming from the product sales or purchase without knowing that their earnings are coming directly from other new investors.
Selling Gold cards should be the primary source of income to people and not the ability of members to recruit more members.
Proof: Karatbars International is a Ponzi Scheme
Source: Bank of Namibia
Source: Cointelligence Platform
It is reported that the Florida Regulators are currently investigating Karatbars for promoting crypto token that is said to have a link to a Miami Crypto Bank that does not have a banking license to operate commercial services.
Source: CrowdFund Insider
They have been discovered not to have any store; that implies that they are selling virtual coins to members.
The commission should only be earned based on the card sold and not on the number of people they recruit as it is in the current situation. This is why Karatbars is a Ponzi scheme.
The Karatbars management should restructure their business model such that the Gold Card should be sold directly to the people rather than via the Ponzi scheme is driven by affiliate network of people.
Issues with Karatbars
It costs 135 USD one-time registration fee to become an affiliate marketer on the lowest level.
This cost does not cover shipping and other logistics associated with selling the gold bullion.
Also, the cost of purchasing gold with Karatbars is more expensive than the actual value you get for it in the gold market.
Karatbars usually sells gold to its users at a 25%-35% markup which is an unfair price if you ask me.
At any time, their cost per gram of gold is at least $30 higher than the standard global market price. Sometimes their price per gram of gold is almost twice the global market price.
Not only is this outrageous but it also makes it impossible for anyone to trade their gold.
This results in a loss for the trader and profit for the company.
Canada and Netherlands’ finance regulatory bodies have deemed Karatbars fools’ gold and warn their citizens from doing business with the German company.
Also, the company states that it is located in Germany, but if you look at the website domain, it indicates that the company is most like in Glarus, Switzerland.
Is Karatbars a Good Investment?
I can guess that the question you are asking now is that should I invest in Karatbars?
Will I invest my money in Karatbars? Hell no!
Karatbars is an excellent idea to secure your money if you are expecting the global collapse of the economic system. But what if nothing happens. It would help if you asked questions such as:
- How do you use or sell your Karatbars?
- Who will you sell it to?
- At what price will I get it sold?
It is easy to buy stuff like Gold but very difficult to sell, that is why you must ask questions.
The complaint is everywhere online that the price Karatbars sell its Gold is more costly compared to how much you can buy it in other major gold sellers.
To make profits, you need to know the mark-up price. You must know how much you will make.
If you are buying an ounce of Gold from Karatbars at a more expensive rate than what it is worth in another location, how do you sell it at a better price when it is time to get it sold? You will make a loss.
How to Withdraw Money From Karatbars
The idea of Karatbars International is to help you store your fiat money in gold to avoid depreciation and loss of value.
Karatbars International innovates three methods for you to be able to withdraw your money back from Karatbars. The three innovations are:
- CashGold, and
What is K-Exchange
Karatbars International international called K-Exchange “a network of trust.”
K-Exchange is a network of stores/shops that are equipped to accept Karatbars currency in virtual or physical form i.e., KaratPay (virtual) and CashGold (Cash).
K-Exchange is a medium of monetary exchange and payment.
CashGold is the physical currency of Karatbars that is developed by KaratBank and Karatbars International for payment and to replace the fiat currency.
CashGold has embedded Gold bars with the smallest unit of 0.1 gram. CashGold is available in the denominations of 0.1g, 0.2g, 0.4g, and 0.6g.
KaratPAY is the online platform that accepts the processing of the transaction in CashGold.
KARAT Gold Coop and Karatbars International developed KaratPAY.
With KaratPAY, you can transfer, buy, and deliver CashGold online.
KaratPAY makes use of the KBC coins, also known as KaratGold Coins, for every transaction on the KaratPAY platform.
How will you then be able to withdraw money from Karatbars?
You will need to open a KaratPAY account, which is free. You can then exchange your KaratGold Coins (KBC) for CashGold.
You can use any of the following channels for your Karatbars transactions.
- K1 IMpulse Smartphone, and
- Karatbars ATM
You can easily buy CashGold online with your credit card and upload it on your KaratPAY platform that can then be used to perform any transaction you want.
You can also purchase with your CashGold and exchange it online. You can also withdraw CashGold on the Karatbars ATM or any K-Exchange shop of your choice.
***There are very few Karatbars ATM in the US not to talk about around the world. This is a problem for this innovation***
Is Karatbars Legit or a Scam?
In my opinion, Karatbars is a scam, and it is not a legitimate business opportunity.
What aided my calling it outrightly a scam is an investigation and discovery of “The Autorité des marchés financiers – AMF.” Also, refer to as The Autorité des marchés financiers.
They discovered the following about Karatbars International:
- They claimed that KaratBars’ activities are very similar to a Pyramid Scheme
- Karatbars are promising unreasonable returns
- As requested by Karatbars, they discovered that the company does not keep either did they store gold on behalf of their investors
If the above is not a scam, what is it then?
The above is a different warning from Netherland and Canada finance regulatory bodies
It is an overpriced and shady MLM. The company structure is designed so that you have to recruit more people before you can earn, making it seem like a Ponzi scheme.
Also, if you want to earn from gold, isn’t it safer to buy from reputable companies?
Also, their price per gram of gold is more costly than the price in the global market.
How then do they expect their investments to make profits? The price is almost 2x of what you can get it at a regular market. Is that not afraid?
Most people that are promoting Karatbars as legitimate are their affiliate marketers that share the commission with the company.
Warnings from various other financial regulators include:
- The Bank of Namibia (BON)
- Germany BaFin (Federal Financial Supervisory Authority)
- The Financial Sector Conduct Authority of South Africa also issued securities warning.
- Karatbars International is also currently been investigated by the Florida regulator in the US.
This also makes Karatbars not to be legal in South Africa
Is Karatbars Legal in South Africa
No, Karatbars International is not legal in South Africa.
The company is not authorized nor have a permit in terms of Financial Advisory and Intermediary Services or to give any related financial advice in South Africa.
The FSCA – Financial Sector Conduct Authority (FSCA) has warned the general public not to deal nor invest their money in an entity called Karatbars.
The FSCA, Financial authority and regulator in South Africa claimed that Karatbars is employing the MLM system and pyramid scheme (though the company disguises it as an eCommerce) for the sales of their products and services.
This was carried in many newspapers in South Africa in 2019, see below:
Source: Business Report
Source: BusinessLive News Paper
Also, Karatbars has been flagged in five countries now, and the population warns not to deal with the company in them, the countries are:
It is official, Karabars is not authorized or permitted to practice its Financial Advisory services with its MLM and Pyramid scheme in South Africa, Canada, Namibia, Germany, and the Netherlands.
Does that make Karabars International okay in your country? Can you still invest your money in this company?
Is Karatbars Worth Your It?
What do you think of my Karatbars review? Do you think you will make money with Karatbars?
Is Karatbars legitimate or scam?
Karatbars is selling a shady product behind its affiliate marketing system.
However, if you are looking for legitimate platforms to make money from I will like to recommend Wealthy Affiliate.
Its affiliate marketing program has allowed me to earn passive income. I have been able to make a four-figure passive income every month from Wealthy Affiliate.
You can click on my link here, to read more about the Internet Marketing Techniques that Wealthy Affiliate equips you with.
What do you think about my Karatbars Review? What product should I review next?
Is Karatbars legal in your region? Are you worry about many declarations by some countries that Karatbars is a Ponzi scheme
I will love to hear from you, kindly drop your thoughts in the comment section below.
It is great to meet you finally. John is my name, and I'm the owner of Amazing Profits Online. I am a Full-Time Affiliate Marketer at Wealthy Affiliate, a community that teaches anyone to earn a full-time income online with their own passion-driven online business. No Credit Card Is Needed. It is FREE to Join. You can also Click here to get to know more about me.