Is Karatbars a Scam? A Golden Investment Opportunity EXPOSED!
Welcome to my Karatbars review!
An MLM company that sells gold bullions? You're probably thinking I'm crazy for even saying something like that. But in reality, a company like that exists. That company is Karatbars.
First of all, I must Congratulate you for taking your time to do your own research before buying into any "seemingly good" product.
That's the way to avoid scams and find the legitimate way to make money online!
Let me be completely transparent with you, I'm not associated with Karatbars in any form.
So, rest assured that I'm not here to pitch or sell anything to you.
Instead, I'm here to reveal what makes Karatbars unique from all the other MLM companies and what makes their gold-en opportunity tick.
Is Karatbars a scam?
We'll find out in this article.
Karatbars Review Summary
Product Name: Karatbars
Founder: Harald Seiz
Product Type: Gold Investment MLM
Price: Package prices vary (from $135 for Bronze Package to $800 for Gold Package)
Best For: People who are familiar with gold and commodities trading, and who are capable of trading these products
Summary: Karatbars International is a legitimate MLM company that sells gold bullions per gram. But I would not recommend their business opportunity to anyone. First, they have scam warnings from countries like Canada and Netherlands. People from these countries are advised to not invest in the products. Second, their gold price per gram is higher than global market price, which would make this difficult to trade and get your money back.
Rating: 30/100
Recommended: No
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What is Karatbars?
Karatbars International is an MLM or Multi-Level Marketing company that operates in the mining and metals industry.
The e-commerce side of the company was developed and launched by Harald Seiz in 2011.
The company is currently located in Stuttgart, Germany, with another office in Munich, Germany.
To date, the company has provided its business opportunities to across 70 countries and plans to expand to over 194 countries worldwide.
Why Would You Even Buy and Sell Gold?
The motivation why anyone would buy gold stems at small quantities is to counteract the effects of inflation, currency depreciation, and economic instability.
Gold is considered to be a universal investment that’s accepted anywhere, and can be converted easily even in times of economic problems.
Karatbars Product Line
Karatbars is unlike any other MLM company because its main product is gold. The company sells small quantities of 24 ct or 999.9 pure gold Atakulche bars.
Karatbars International sells small quantities of 24 ct or 999.9 pure gold ATAkulche (or minted) bars.
These are produced by an LBMA (London Bullion Market Association) and GDL (London’s Good Delivery) refiner known as Atasay Jewelry, under the Atasay Group.
The one unique thing about Karatbars gold is their packaging, with each piece of the precious metal containing the assayer’s signature and stamped with a valid trademark.
The gold bar unit is embedded and heat-sealed in like a credit card (which also has a UV-protected film).
To add to the visual appeal, there are hologram acorns on the bar’s reverse side, which is also a security feature. The hologram also contains a graphic bar code with details of the item and its certificate of authenticity.
Karatbars makes it easy for anyone to invest in gold because they are sold in small denominations, starting as low as 1 gram. These are so small that they are sealed into a plastic card.
Do The Products Work?
Karatbars is one of the few MLM companies that got into the gold and investments business.
But since this is a product that has absolutely no function, it’s going to be based if they’re real or not.
I have not stumbled across any review that says anything about Karatbars gold being fake, mostly because their provider, Atasay, is an accredited refiner and has stringent standards to uphold.
However, it’s worth noting that the biggest problem associated with Karatbars gold is their quality, according to some sources.
While their gold isn’t any different from other companies, their gold can’t be used to make any jewelry because it’s a soft metal.
So, if you’re just looking for gold with absolutely no purpose at all, then you can’t go wrong with Karatbars.
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How To Make Money With Karatbars?
With any MLM company, Karatbars is no different when it comes to the opportunities it provides to its distributors to earn income.
This is how you’ll earn with Karatbars:
- Commissions – direct, unilevel, and binary commissions.
- Bonuses and incentives
- Karatbars Gold Fund
How To Get Started With Karatbars?
Membership is free to get into Karatbars, but in order for you to avail of their commissions, you need to purchase one of three packages.
Karatbars doesn’t have any starter kit, but they do have a list of possible packages for you to choose from. Each package goes up in price depending on the content, product, and bonus features that you want.
- Bronze Package - $135
- Silver Package - $350
- Gold Package - $800
The VIP package was discontinued on December 2015 based on numerous sources.
Then, you also need to pay for shipping and you still need to buy your own supplies, which vary from country to country.
Karatbars Compensation Plan
Karatbars' Compensation Plan is 25 pages long and looks to be very complicated. I can only imagine the details that a sales representative or distributor needs to share in order to close the sale.
Insert Karatbars Compensation Plan
1. Package Commission
Package commissions are paid out to distributors each time they sell a new package to a distributor they recruited.
- Silver package commission: 60 EUR or roughly $70*
- Bronze package commission: 150 EUR or roughly $170*
- Gold package commission: 300 EUR or roughly $340*
* - Based on current Foreign Exchange rates from EUR to USD.
2. Unilevel Commission
Unilevel commissions are offered to distributors at a percentage of the money spent by their distributors they recruited below them and depending on the rank.
The lowest rate that a distributor makes at unilevel commission is 0.5% and the highest being 5.5% commission.
3. Binary Commission
Binary commissions are offered to distributors on what was spent by their downline through a binary compensation format.
Insert Karatbars Binary Commission
These are paid out generationally once each leg has met the minimum number of units sold.
4. Worldwide Turnover Bonus
How this pool is paid out to distributors is unclear, and their compensation plan can’t help explain it.
It appears to be a percentage bonus pool that’s composed of 95 cents for every gram of gold that Karatbars sells.
5. Gold Pool
This pool is made up of 1% of Karatbars International’s lump-sum gold purchase, which I believe counts both the package purchases and gold purchase over 50 EUR or $55.
To qualify for the Gold Pool, a distributor must have three unilevel legs that generated at least 9000 points each.
The points are then divided by 1000, which provides the number of shares in the Gold Pool that distributors may qualify for.
I won’t go deep into the details and intricacies of their compensation plan, but this video should help:
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Karatbars Ugly Truths Revealed
#1 - Fraud Warning From Other Countries
The first thing that I want to bring up is that Karatbars has been issued a scam warning by the Autorité des marchés financiers (AMF), which is a financial regulatory body and the equivalent of the SEC (Securities and Exchange Commission) in Canada.
Another country that issued the same warning was Netherlands through the Netherlands Authority for the Financial Markets (the equivalent of the AMF).
Much like commodities and anything that belongs under the financial industry, companies need to be regulated and registered before they can take on investments (regardless of form).
What makes this interesting is that the scam warning issued by Canada’s AMF was triggered by a citizen who reported it to be nothing but a Ponzi scheme.
The warnings may be a few years old, but it does make you wonder about their business operations.
If you’re looking for a legitimate business investment that would consistently pay out, I would look at affiliate marketing.
#2 - They Are Jacking Up Their Gold Prices
Karatbars is jacking up their gold prices per gram by as much as $30 per.
As of this writing, their price per gram is around 57 EUR or roughly $65.
Based on the global market price (which closed as of October 29 1700H), it’s at $39.47 per gram.
That’s a $25.53 difference from the global market price, and I can’t figure out why they would even price it that.
They’re not that different from any other gold company, and they also can’t afford to spike it up when they’re in a competitive industry either.
This would make it difficult for anyone who bought gold from Karatbars to make a profit out of their gold because they are losing money the moment they trade it.
So, if I bought 10 grams of gold from Karatbars at $650, I would lose $255.53 if I were to trade it to someone else.
What I Like About Karatbars?
#1 - Product is Authentic
As I mentioned earlier, there’s no issue with the authenticity of their products.
The gold bars are embedded into a heat-sealed UV protective plastic card and are insured and shipped with a reliable courier.
The ATAkulche bars are produced by an accredited refinery and each gold bar is stamped with a valid trademark and signed by the Assayer.
Is Karatbars a Scam?
On the surface, Karatbars appears to be a legitimate company that sells gold, which in itself is a lucrative industry. However, I would not recommend their business opportunities to anyone for the following reasons:
First, they got warnings from Canada and Netherlands’ finance regulatory bodies.
These warnings are not to be taken lightly because these regulatory bodies deemed their activities to be illegal and unregulated, which is a big deal in the world of finance.
Second, their price per gram of gold is higher than the global market price by as much as $30. This would make it impossible for anyone to trade their gold and get their money back.
When you’re in an industry that’s both lucrative and competitive, you need to be at pace with whatever the global market price is.
But with Karatbars, their price per gram of gold is almost twice as much as the market price and with absolutely no reason behind it.
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