Is Karatbars a Scam? Can You Really Make Money?

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


is karatbars going publicProduct 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
Rating: 20%
Recommend: No.

 

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.

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how to cash out karatbars

 

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.

 

is karatbars legal in south africa

 

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:

  1. Sales dependent commission – direct, unilevel, and binary.
  2. Karatsbars Gold Fund.
  3. 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 support@karatbars.com, and since its agents are provided with landing pages, they may also have to act as their customer service providers.

 

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

how does karatbars make money

Source: Bank of Namibia

 

how to withdraw money from karatbars

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.

what is karatbars businessSource: 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


  • Cost

It costs 135 USD one-time registration fee to become an affiliate marketer on the lowest level.

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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.

  • Price

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.

  • Fraudulent

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:

  1. K-Exchange,
  2. CashGold, and
  3. KaratPAY.
  • 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

CashGold is the physical currency of Karatbars that is developed by KaratBank and Karatbars International for payment and to replace the fiat currency.

how much is karatbars worth

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

KaratPAY is the online platform that accepts the processing of the transaction in CashGold.

KARAT Gold Coop and Karatbars International developed KaratPAY.

 

how to get karatbars mastercard

 

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.

  • K-Exchange
  • K1 IMpulse Smartphone, and
  • Karatbars ATM

 

where is karatbars located

 

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.

The AMF issued a warning to the investors and the public on March 20th, 2014; which was different from a different warning they issued in 2012

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

what is karatbarsSource: AMF Publication on Lautorite.qc.ca

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:

 

how does karatbars workSource: MoneyWeb.com

 

how to make money on karatbarsSource: Business Report

 

who accepts karatbarsSource: FA-NEWS

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is karatbars a good investmentSource: 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:

  • Canada
  • Namibia
  • Germany
  • Netherlands

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.

what is karatbars international

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20 thoughts on “Is Karatbars a Scam? Can You Really Make Money?”

  1. Hey, Your review on Karatbars Investment is very useful for everyone like me.  Karatbars is an eCommerce company that runs its affiliate program in the multi-level marketing model. 

    While reading I know that Karatbars affiliate program is best for people who are familiar with gold and commodities trading. 

    Hard work for little reward. When red flags are raised by governments it is best to heed the information. Thanks for the information on Karatbars. 

    I like the part you stated the list of countries where Karatbars are not authorized or permitted to operate i.e. South Africa, Canada, Namibia, Germany, and the Netherlands.

    Since they are restricted by the regulations, it is not a good idea to invest in such a company.

    Look forward to seeing more review from you.

    Reply
    • Dear Parveen,

      Thanks for reading my Karatbars international GMBH review.

      I appreciate your comments and time

      Regards 

      John

  2. Wow! This article is a great eye-opener on Karatbars. 

    My friends want to know the following:

    1. How to withdraw money from Karatbars?
    2. Is Karatbars going public?

    but, cant still finds the answers to those two questions on your site. Can you please research them? 

    I’ve been trying to help one of my friends’ research on the best way he can make investments. We saw suggestions on investing in gold bars online and for a moment, we thought it was a great idea. 

    This post is so timely. Thank goodness I came across this article and thanks for elaborating on this subject.

    Reply
    • Dear Chris, 

      Thanks for reading my review about is Karatbars. 

      I will soon investigate your two questions as follows:  How to withdraw money from Karatbars and if Karatbars is going public or not. I will incorporate my findings into the body of my article.

      Thanks for the request.  

      Regards 

      John

  3. Generally speaking, MLMs are definitely not the wisest investment. With Karatbars I see the same tactics as usual. Gold sounds particularly sketchy here, to be honest. 

    While the idea behind smaller, portable bars sounds pretty good, running a gold commodity company like a cryptocurrency company is a huge red flag. 

    I came to this site to get the answer to the following two questions:

    !. I wanted to know if Karatbars is legal in South Africa or not, and

    2. I wanted to know What the full business of Karatbars is?

    You have provided some excellent information and answered some highly relevant questions, so thanks to your post I will steer clear of Karatbars, thanks!

    Reply
    • Dear Pentrental, 

      Thanks for reading my article about if Karatbars  is a scam or legitimate business.

      I am glad that you get answers to all your questions. 

      I appreciate your comments.

      Regards

      John

  4. Hi John

    It is always best to read between the lines before joining in a scheme, gold is a good method to make money if you know what you are doing. I am glad you have pointed out that Karatbar is not the company to do this, as people often buy gold jewelry that they wear and appreciate in value. I do not believe in buying gold for investment, more for the pleasure it brings. I am not generally find of MLM as you have to promote the programme to get promoted to the various levels. Hard work for little reward. When red flags are raised by governments it is best to heed the information. I think your article has highlighted the unsuitability of this programme. 

    Do you think you can make money by buying gold yourself and keep it to sell in the future?

    Thanks

    Antonio

    Reply
    • Dear Antonio,

      Thanks for reading my article about how to make money with Karatbars.

      I won’t mind buying Gold to keep. But I will like to see the Gold I am buying and I will like to keep if I and not with the same company selling the Gold to me. 

      The authority just discovered that Karatbars has no store nor have the company been keeping gold anywhere as promised the investors. 

      This is one of the reasons the Canadian and Netherland authority wrote against the company. You can read more about this story here. It implies that they lied to their investors, which also means that the company is a scam.

      Thanks again for taken the time to drop your comments.

      Regards 

      John

  5. Wow🤔! Thank you John for this informations, I consider this review a life changing one for me as an investor, I’m bookmarking this article right away to show my friends who’s got interest in making money online not to fall victim. 

    Thanks for this information on Karatbars. Look forward to seeing more reviews from you!

    Reply
    • Dear Evagreene, 

      thanks for reading my Karatbars review. 

      I am happy you love it.

      A friend of mine pushes me to doing a write up about how Karatbars. He wanted to know if Karatbars is a legitimate company. 

      I am glad you like it.

      Regards 

      John

  6. I must tell you that any time I here or see things like this the first thing that comes to my mind is scam scam and I tell you karatbars is one of the biggest scams on the internet I have friends that have invested on it and he got nothing form it.thanks for sharing this article with the public it would really help others.

    Reply
    • Yes, Karatbars is a scam and a pyramid scheme. 

      It is official Karatbars is a pyramid scheme. discovered and unveiled by the Bank of Namibia. You can check for think on the body of this article. 

      Thanks for reading my article about Karatbars review. 

      Regards 

      John

  7. I have to be honest, the idea seems really sound and I have no doubt it’ll appeal to a wide range of people. Integrating gold sales into MLM is not common. In fact, this is my first of coming across such offer. As you said, karatbars would turn out to be a very lucrative opportunity for those who are already well versed with the bullion market. Thanks for sharing 

    Reply
    • Dear Rhain,

      Thanks for reading my article on how to make money on Karatbars.

      I also appreciate your time for dropping this comments.

      Regards

      John

  8. Hey John, you did an awesome job in your review of Karatbars. The Reviews I have read about Karatbars before now did not explain the whole stuff like you did in this review. I never knew that Karatbars cost way higher than the standard price of Gold plus it’s even like a virtual coin that the buyer is purchasing. This really looks like a Ponzi scheme. It will be difficult to market too because of the high price.

    Reply
    • Thanks for reading my Karatbars review. 

      I took this article up because I met a guy on Redi that wanted to know all about Karatbars, most especially how does Karatbars make money. I then decide to write a complete review of how to make money with Karatbars.

      Thanks again. 

      John

  9. A sincere thank you to you for this amazing review! I had listened to a Karatbars phone seminar a while back, and I somehow had it in my head that it was another cryptocurrency. I told myself to look into it but never bothered. I know they had an affiliate program, but it left me unenthused. Now, I definitely know I’m not interested. You saved me the trouble of looking this up elsewhere. Awesome review!

    Reply
    • Dear Cathy, 

      Thanks for reading my review on how to make money with  Karatbars.

      Thanks for the commendation.  This article is what Karatbars Is all about. 

      Thanks again.

      Regards

      John

  10. I have never heard of this company before reading this article.

    My husband has been researching about investing money into gold bars and going that route for a savings.

    Definitely going to pass this information along to him so he can read about it in case it was one of the companies that he had researched.

    I can’t believe that you were saying how people lose out so much money and I’m glad that you did the research that we were able to make the best decision for our family thanks

    Reply
    • Thanks for reading my Karatbars review.

      I am happy the article can help you in your decision making.

      If you are interested in making money with Karatbars you can think again. There are better ways of making money helping people online.

      Check out my number way of making money online.

      Regards

      John.

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