Karatbars International Review – Overpriced Gold Scam? [Revealed]

Karatbars International founded in 2011 by German Businessman Harald Seiz is a multilevel marketing business that has its central focus on the selling of physical gold bars. 

The Business and company Karatbars International GmbH is self funded, debt free and financially secure. They are headquartered in Stuttgart, Germany with another office located in Munich. 

Their gold bars and said to be of the highest quality and purity, with a purity of 99.9%. 

One of the major selling points for Karatbars is that you buying a solid investment that has historical value. 

Their gold based products are sold in 194 countries worldwide.

The company, launched during a global economic crisis, claim that their product is a solution to the global debt crisis. 

Rather surprisingly Karatbars international is unique in the MLM world where there are selling you a genuine investment.

Although the value of gold tends to fluctuate on a daily/monthly/yearly basis you can bet your top dollar that over a prolonged period of time it rises in value. 

Historically speaking the value tends to be greater than the rate of inflation at around 5% to 7% year on year. 

Karatbars, rather uniquely makes buying gold easy for the general public by packaging them in a variety of different forms. 

One of the most common and top selling gold products sold is their credit card like products where the 1g of gold is pressed into a flat square, very much like the chip on your chip and pin bank card. 

It is very authentic (and is), encased in plastic film and with a pretty cool hologram and bar code for authentication. 

Gold, not only is a very maleable metal it is incredibly dense. All the gold in the world would easily fit below the Eiffel Tower. 

This makes 1 gram a tiny flake of gold. Although this does not devalue or make the product any less authentic. 

The bigger issue is the pricing. 

We can see the product. 1 gram of gold is being sold for 64.88 Euro.

 Let's check out Kitco for the current price of gold. 

Basically, with Karatbars International you are buying an investment at 63.14% over and above the market value of the investment. 

If you are involved in selling their gold products this is precisely what is being asked of you. To sell something that is almost 2x its actual value. 

If you actually bought gold from Karatbars international it would take you something like 10 or 12 years for the gold that you bought to reach the price that you paid for it. 

This does not look like a good investment to me. 

what's more is you can't actually do anything with the gold in that form other than it being a keepsake. You can't make jewelry with it. 

In fact, I can go as far as saying that the gold sold by this company is no different from gold sold by any other company - including your bank.

If you did decide to buy gold from your local bank you'd get the same purity of 99.9% and for a few bucks more - get 2 grams and not 1!. 

Karatbars International - Other Products

Karatbars International has expanded beyond gold and into other technologies, some of which do look very interesting. 

The IMpulse K1 Smartphone

 This smart phone being developed by Karatbars is a VOIP smartphone that functions on the blockchain called the IMpuse K1 Phone. 

The IMpulse K1 Phone is not yet available to the public as it is on preorder and still undergoing development.

My understanding is that this product is being developed in Singapore and has huge privacy benefits. 

KaratBit

Beyond gold!. KaratBit or KB for short is the companies forray into the world of Cryptocurrency and is their own cryptocurrency exchange where you can trade various cryptocurrencies including Bitcoin. 

KBC Token

This is Karatbars International own cryptocurrency which, the company claim is backed by gold. 

I am no expert here, nor claim to be but if that was true and the supply of KBC was limited then that would make KBC Token pretty unique and very interesting. 

Much more interesting than Facebook's Fiat based Cryptocurrency. 

There are a number of other interesting projects in development including Payment processor, gold storage and ATM network all based around gold as a currency. 

Karatbars also has a app for your smartphone:

• Karatbars app for Android.
• Karatbars app for iOS

Clearly, Karatbars are not going to disappear any time soon. 

Karatbars International being a multilevel network marketing business has two principle ways in which you can make money. 

1. Direct Sales: You sell products and earn a commission. 
2. recruitment: You recruit people to your downlines and earn pass up commissions and bonuses.

Important Note: 

On many sites you will hear and read a lot of "hula-pa-lulla" about buying Karatbars gold and not really spending money and it being effectively free. 

This is not entirely accurate due to the inflated price in which the company is selling their gold at.

Remember at the current price you are paying 63.14% over and above the market price for what you are buying. 

If I take $64.88 from you and give you something you can sell for $40.97 - clearly you have spent $23.89 for the privileged of buying gold at my price!. 

keep that in mind!. 

The Karatbars International Compensation Plan Detailed

As a distributor of karatbars International you have -9 ways of earning an income with their business opportunity. 

1. Double Income

During your first 6 weeks of joining the opportunity you have the possibility of doubling your income from your direct sales of the 3-D cards with 1g of gold. 

2. Direct Sales

Here you can earn 1 point for every 2euro that your customer spends. If they buy 200 euro worth of gold you will earn 100 points. 

Once you have sold 400 euro worth of products you will have earned 200 points which qualifies you to earn 0.5% commission. 

(Note: That is 1 euro for every 200 euro of products sold!).

3. Unilevel Generational Bonus

This network marketing opportunity functions using the unilevel compensation model where you can go infinitely wide with your personal recruits and infinitely deep or as deep as the company permits as per their compensation plan. 

The unilevel generation bonus is obtained when you reach gold director elite rank, commissions here rise to up to 6%. 

4. Karatbars Pool

This is something that is pretty unique and that I have never seen in the hundreds of MLM companies that I have investigated and reviewed. 

Although team bonuses are nothing new, which is what this effectively is, what is unique as this is a global pool bonus. 

For every gram of gold sold 95 eurocents (0.95 euro) goes into the global pool and split amongst the 8 levels of the compensation plan. 

The higher you rank, the greater your bonus will be. 

5. Karatbars Gold Fund

Similar to number 4 above, you can earn on the global sales of Karatbars with 1% of all sales over 500 euro being put into the fund.

6. Marketing Packages

There are a number of different marketing packages which you can purchase that allow you to increase your commission level. 

• VIP package 1900Euro
• Gold package 749Euro
• Silver package 349Euro
• Bronze Package 125Euro

These packages come at different prices and different quantities of the (overpriced) gold, cash gold, and 3% off discount cards. 

In addition the 4 packages above there are premium and professional gold packages which entitle the buyer to a share of the global sales of Karatbars international as mentioned in No 4 and 5 above. 

These packages sell for 4,000 Euro and 8,000 Euro respectively. 

If you do decide to join - remember it is not always in your best interest to join at a level higher than you are comfortable with.

Your sponsor might pressure you into a more expensive package. 

This is in their interest - a higher commission amount, but not necessarily your own best interest. 

If a system, program or opportunity works - it works on all levels regardless what point you start at. 

7. Dual system Double Income

The Dual System Double Bonus is an option that is related to the sale of the 3D gold cards. 

If you can sell 3 of them during your opening 6 weeks you can get a bronze package absolutely free! 

8. Package Bonus

With this package bonus you have the ability to earn direct commissions. This is most often done by promoting the marketing packages and earning a 20% commission maximum for each package sold.  

9. Dual Team Bonus

This where things got a little bit confusing as it does appear that Karatbars international use a combination of both the unilevel and binary compensation plan, elements of both. 

In this part, the binary compensation model is used. 

you have two teams, a left team and a right team. the idea of the binary compensation model is that each of those teams recruit 2 more people each, and those 2 recruit 2 more and it continues on perpetually. 

To qualify for the dual team bonus you must have 25 on the weaker side and 50 on the stronger side. 

This is at minimum  6 levels deep on your strong side and 5 on the weak side. It is dependent on you being good at recruiting and your other team members also. 

All that qualifies your for an 80 Euro bonus. 

Watch the video for a full demonstration on how the compensation plan works. 

I always like to check out and see how a company is rated and viewed by organisations such as the Better Business Bureau. 

This gives an indication as to how they are and how well they perform on teh consumer side and aspect of their business. 

At the time of writing, the Karatbars International profile on the BBB website is being updated. 

I can assume for the time being that they are unaccredited and Not rated, until further notice. 

When it comes to complaints about Karatbars international, my own personal one is the fact that they are selling a commodity over and beyond it market price by a long shot. 

There is also a very interesting point - why does the company provide them on those plasticised cards?.

One reason being, 1g of gold is tiny, it is for all intents and purposes a flake of gold.

But how are the general public to know that they are not being undersold and the real weight of the gold on the cards is half a gram or 2/3 of a gram?. 

How you as the consumer to know that it is not a gold plated flake? 

Or even worse still Pyrite - Fool's gold!.

Legal Issues In Canada

Karatbars International has been banned in Canada. The Courts in Canada Ordered Karatbars International to cease operations and the promotion of their products in the Country. 

It was ruled that they in contradiction of the Securities Act & Financial Market Authority act. 

The fines that were handed out were for the promotion of a Pyramid Scheme and also the sale of unauthorised investment contracts. 

Pyramid Scheme Warning In Namibia

The Bank of Namibia investigated Karatbars international and concluded that the company is running an illegal Pyramid Scheme - a Practice that is prohibited in the African Nation. 

The bank is the countries leading financial regulator. 

In my opinion and that of at least two governments is that Karatbars international is not legit. 

You do have to question the legitimacy of a company and business that is selling products at 63.14% above the market value. 

If you bought coffee from me for $1.65 when the Regular price is a $1 you would call that a rip off.

The same can be said if you buy gasoline for nearly twice the price. 

So why not gold?

What further add to the illegitimacy of this opportunity, as indicated by the authorities in Canada is the fact that the company may not have the permission to sell securities or commodities in your country. 

That itself, could land you in big trouble for being unlicensed and selling a commodity. 

For those that blindly claiming the legitimacy of Karatbars International really do need to be questioned. 

If you examine further, you would probably find they are in fact affiliated to the company and thus biased and have a weighted financial interest in claiming the companies legitimacy and not facing the truth of the matter. 

No.

Do you think it would be wise to invest in property (for example) and buy a Home valued at US$100,000 and pay $163,140 for the property. 

If you were to make that kind of investment, you would need to strongly re-evaluate your investment skills. 

I do agree with leading experts like Max Keiser of the Keiser report that gold is a solid investments. But buying it at 63% above its market value is not a good idea. 

Buying anything at an over inflated price is not a good idea.

Despite all I have written and said about Karatbars so far there are some good points to the company. 

They Are Long Established Business

The fact that the company is long established and adapts to technologies swiftly is a very good point.

Although I am not into Cryptocurrency the idea of their gold backed token is interesting as is the blockchain based smartphone.

It is A Unique Idea

The fact that they are selling gold is very unique in the MLM sphere and might have the spin off of making people more financial aware. 

There are a few things that I did not like about karatbars, namely. 

Overpriced Product

The product might be unique but it selling a commodity a far above the market price. 

Banned In Canada

Karatbars being banned in one country is one thing, getting into trouble with regulators in another country really raises alarm bells. 

"It's A Pyramid Scheme" - Say Legislators!

Legislators in both Canada and Namibia have labelled Karatbars as a Pyramid Scheme. 

This is something that I will not deny that there is a possibility of you making some money with Karatbars.

But it is not very likely that you will earn anything worthy of note. This is something that is evident due to the lack of an income disclosure statement on the site, which for some reason or another was taken down by the company. 

Statistically speaking only 2% of all individuals that start an MLM based opportunity manage to earn a full time income from the opportunity. 

According to the Authorities in Canada and The Bank of Namibia Karatbars International are indeed a Pyramid Scheme. 

That is, in my opinion all that I and you need to know about the matter. 

Yes, given the very nature of the companies compensation plan and the fact that they pay out over several levels is evident that they are a multilevel business opportunity. 

In my opinion Karatbars International lacks a strong degree of legitimacy as I pointed out earlier. 

A legitimate company does not "ruffle" feathers with two governments in 2 different continents. 

Neither would a legit company sell you an investment at a vastly inflated price or ask its distributors to effectively become unlicensed sellers of a commodity. 

All that glitters is not gold - even fools gold shines brightly. You would be a fool to proceed with this opportunity. 

Instead of driving yourself crazy - your friends and family too by trying to get them to "join your team" forget about MLM's. 

The business model works - only for those at the very top, those lower down have a hard time progressing, this is why very few succeed with network marketing and the masses fail. 

It is designed that way!. 

I suggest that you have a look at other different opportunities outside of MLM's that are less frustrating and more suitable for you personally. 

I have been earning a living online since 2015 and absolutely enjoy what I do. No face to face selling, no filling out of surveys and absolutely no recruiting at all. 

It is a rock solid business model and has been in operation since at least 1996, so you can rest assured it it not some kind of new fad!. 

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