Company: Karatbars International
Founder: Harald Seiz
Welcome to my review of Karatbars International!
I am going to let you know in advance that this is going to be one of the most brutally honest reviews you have ever read.
Some say that Karatbars is a scam, while others say that it is a legit company, so it doesn’t surprise me that you’re here wanted to get to the bottom of it.
After you’ve read this review, I think you will be able to make an informed decision.
I am not affiliated with any of the companies I review and provide analysis of the company from head to toe.
I do not add any of my opinion in the overview, products or compensation plan sections.
I will save opinion and facts for the list of pros and cons sections.
This allows you as a reader to digest the information in a much more organized way.
You should read the review in its entirety because there is a lot to cover in this review.
There are some high notes and some low notes so take them all for what they are; reasons to join or not to join.
In other words, keep it simple!!! Let’s get started with the company’s overview.
You can also check out the step-by-step training that helps me earn over $10,000+ per month working from home.
What Is Karatbar?
Whilst they don’t refer to themselves as an Multi-level Marketing (MLM) company, and would much rather you perceive them as a e-commerce company with an affiliate program, they do appear to operate as a MLM.
I don’t blame them, because when people think of MLM’s, it’s usually, selling stuff to friends and family, and holding home demonstrations.
Having said that, you’ll find that all MLM’s require you to purchase a product or service to satisfy legal requirements, however, Karatbar doesn’t require you make any purchases at all, only the recommendation of product purchase for your own financial security.
Gold being a commodity that holds value even in failing financial markets is the basis for their marketing strategy.
Karatbars sells small gold bars and gift items in 24 karat pure gold bullion.
Some of their most popular products are Karatbar Classic Card which is a 1 gram gold bar embedded in a card, providing insurance against economic downs.
A Karatbars International Overview
After reading several other reviews of Karatbars International, there seems to be two sides of the story.
Check it out…
Karatbars International was founded by CEO Harald Seiz in 2011.
The company specializes in the gold bar sales and gold bullion niche market.
According to some reviews, the company is headquartered in Stuttgart and in the past few years the company has expanded to over 120 countries including Australia, Bahamas, Germany, Hong Kong, Namibia, Nigeria, South Africa, Thailand, Trinidad and Tobago, United Kingdom, United States and Venezuela.
In other reviews, a much different story is told.
The company claims to be based out of Germany but if you look at the website domain, it shows that the company is actually operating out of Glarus, Switzerland.
There is a German phone number associated with the registration though.
In Seiz’s biography, it is stated that he joined a precious metals company in 2008.
This company is believed to be KB Gold.
There seems to be a bit of confusion between the companies because they are so similar in name and if you compare the compensation plans, they are almost identical.
If you’re looking for a way to make money through investing in gold then, based on the research I’ve conducted, this opportunity might NOT be what you’re after (read the rest of the review to understand why).
Product & Services
This is probably the most simple part of the company to understand.
It is really easy to understand that you purchase gold at the retail level.
The company hypes the importance of gold with comments like, “the global economy is going to crash any minute.”
Although the comment is true in a sense because the economy crashes from time to time, it fails to mention any exact time frame for this global crash.
Another thing that the company does is tell you that the gold you get from Karatbars International is the best possible.
I’m not really sure what makes their gold better than anyone else’s but I wouldn’t take their word for it.
Ok guys, the Karatbars International Review PDF is a (25 pages long compensation plan), so I’m going to recommend using the link I provided so you can read it on your own.
I will provide the nuts and bolts of the plan so that you can use this section as a quick reference but there is nothing better than using their own plan as a guide.
7 Ways To Make Money
1. Direct Commission
2. Unilevel Bonus
3. Generation Bonus
4. Package Bonus
5. Dual Team Bonus
6. Karatbars Pool
7. Karatbars Gold Fund
7 Uni-Level Ranks
1. Supervisor – 200 Points / Cumulated Distributor
2. Bronze Supevisor – 500 / Per Month
3. Silver Supervisor – 1250 / Per Month
4. Gold Supervisor – 2500 / Per Month
5. Bronze Manager – 4000 / Per Month
6. Silver Manager – 6000 / Per Month
7. Gold Manager – 9000 / Per Month
After a quick read through the compensation plan there are a few things I noticed.
It isn’t exactly clear in a lot of places. For example, who is paying me and there some people complaining about never getting paid or getting shorted.
I’m just wondering if anyone else has had troubles with this.
So if you have some experience with this company, can you confirm either way.
Investing in gold is one way to make money, but there are much more lucrative ways at a fraction of the cost. See this review.
Things I Don’t Like About Karatbars International
1. The first thing I want everyone to read in this section is a warning from Canada back in 2014. It is a AMF Scam Warning.
Ok, I get it, the warning is from two years ago and the company is still promoting around social media and global websites.
This article is still relevant because it shows you how some countries take fraud seriously while others are behind the ball.
Here is a quick excerpt to demonstrate the problem with Karatbars International in Canada: “The AMF reminds investors of the risks involved when investing in companies such as Karatbars that are not reporting issuers and do not hold AMF registration or authorization.”
2. Here is another aspect of the business that I don’t like.
The prices that you purchase the gold in are substantially more expensive than the actual value of market gold.
In this case, Karatbars International usually sells gold to people at a 25%-35% markup.
This is absolutely ridiculous and it is now easy to understand why so many of these gold bar MLMs are shutdown every year.
In fact, I am wondering why authorities allow unlicensed gold distributors are allowed to sell at all.
Anyway, the comment that I posted above, show us another aspect of Karatbars International that scares me.
3. If someone wants out of the company and their investment returned, they have to approach their sponsor rather than the company itself.
This is crazy because the second that your sponsor senses that a recruit wants their money back, they disappear.
What this means is that Karatbars International takes no responsibility for any sponsors which is just a cop out.
This happens with every gold selling MLM and will never change.
This is part of the reason most of them are shutdown within the first year and others rarely last more than a few years.
Take a look at this article from the Calgary Herald from 2015.
These people were all affiliates of Karatbars International, yet nothing in the article says that the company itself faces any charges.
It is simply the affiliates. The article also says that “other organizations and banking institutions were also invoved,” so maybe there is more to the story than just Karatbars International.
Either way, this is something I do not want to be a part of.
This is the number one turnoff for me when it comes to an online business opportunity.
I want it to be legit and I want it to be 100% legal with any speculation surrounding it.
When it comes to picking a MLM, go for the sure thing.
4. This is the last part of this section and then I’ll end my rant about these gold scheme MLMs.
Why is it that everyone of these gold ventures thrives on the fears of everyday citizens.
Notice that there are always claims about:
• The economy crashing
• The next great depression is near
• Paper money is worth nothing and isn’t even real
• Invest in real gold to accumulate real wealth
Since I am a 3rd party reviewer, I have an advantage because I have zero risk or reward with any of these companies.
With that being said, I would never invest in a company that offers these kinds of pay-to-play situations.
So you start out by investing some money in exchange for some gold.
Then you get paid a little slice of the pie until you buy a few thousand dollars worth of gold so you can get paid at the highest level.
Take a look at the revenue generation of these companies.
It is all generated by recruiting and not the gold purchases.
Plenty of goldex type scams have been shut down for less and I don’t see this company lasting much longer.
Here’s a better way for you to make money without the risk. Check it out here.
The Final Verdict
Here is the deal, some are claiming success with the company and some are saying Karatbars International is a scam.
Here is an image I want to show you and also keep in mind that most areas in Canada are issuing warnings about the company and asking people to please avoid the company.
Look, I cannot personally verify which is which because I am not a member but any company that is getting this kind of negative publicity, should probably be avoided until the legal issues are cleared.
In fact, there always seems to be an issue with gold marketing niche MLMs when it comes legitimacy and Karatbars International no different.
If you are interested in a sure thing, check out this review.
There is a lot to like and there is literally no risk involved.
You can try it out for FREE and then decide if you want to continue with the services.
The training program is top notch as well.
I hope this review helped you on your journey of finding the perfect MLM for you.
If you have any experience with this company, want to leave a comment or questions, feel free to fill out the form below.
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11 thoughts on “Karatbars International Review – Is it Legit or Another Gold Scam?”
As an ordained minister and a seasoned networker of over 30 years who has personally earned over $3 million by working a business from home, over the internet & phone – it is deeply disturbing to see a blog like this with so much deception in it.
1. The writer claims to be writing a “brutally honest review” but he does not even put his name on the article. What is brutally honest is that the writer is trashing Karatbars for the purpose of making himself appear to be smarter than Harald Seiz (the owner of Karatbars) so you will sign up with him in his other business. Now that is the brutally honest truth. Once you click on the link so you can sign up with this writer, it then appears that the person behind this writing is Frank Lam Sheung, at least according to his supposed back office screen shot.
2. Frank claims he is “not affiliated with any of the companies I review” but this is not true, because when you click Frank’s link on this page, he is an affiliate with his company “Wealth Affiliate” that he is trying to solicit you into.
3. Frank claims “I do not add any of my opinion in this review” – oh my, is it possible for him to tell a bigger lie than this? Frank repeatedly interjects his opinions and his lack of research and his lack of the facts. Examples by Frank:
“There seems to be a bit of confusion” – not if you had the research skills of a 7th grader, you would not be confused.
“The company hypes” = opinion
“It fails to mention any exact time frame for this global crash” = totally dishonest, because no on can foretell the future, and certainly Frank cannot foretell the future.
“I’m not really sure what makes their gold better” = OPINION and no research by Frank.
“I wouldn’t take their word for it” = OPINION. Educated people do their own research (something Frank did not do). Many educated people have saved over a hundred grand in Karatbar Gold.
“It isn’t exactly clear…” = OPINION and since Frank repeatedly admits that he does not understand what he is criticizing, no one should believe what he says. You see there are phone numbers posted for Karatbars and he could have called the company for the answers or at least called a number a high ranking Karatbar affiliates .. but Frank did not.
“I cannot personally verify” = then you should not say or write anything until you do verify. Thus Frank admits that he is writing his opinions and his opinions are not based upon evidence, but rumors and gossip.
Frank uses an OLD version of the “Karatbar International Review PDF” – which shows either he is intentionally deceitful or his research is that of an amateur.
Frank claims that Karatbars has “7 ways to earn money” but a basic review shows there are NINE.
Frank claims that Karatbars has 7 unilevel ranks, but a basic review shows there are FOURTEEN.
Frank propagates a rumor that “some people complaining about never getting paid or getting shorted.” Such undocumented gossip is only fit for the garbage. Notice Frank did not mention 1 person’s name. I know of over 1,000 affiliates in Karatbars, and if people were not being paid or being shorted it would be all over the internet, but it isn’t. Also, Germany does not put up with financial fraud, and they would have shut down Karatbars and sent the CEO, Harald Seiz to prison if this rumor was true. Sad that Frank would spread lies like this.
Frank plays up a big deal about the “warning” by a few leads in the province of Quebec, Canada called the AMF. Frank gives no context as to what happened. A TV station asked a man (one man, who was an independent affiliate) to appear on their TV show. This affiliated answered the questions badly, very badly. Karatbars did not authorize or know anything about this affiliate doing this interview. It was based on that one man’s badly done interview that some of the leaders in the AMF issued that warning. Frank does not mention that NO COURT in Quebec or anywhere has ever issued a guilty charge against Karatbars. Anyone can issue a “warning” or an “accusation” but those are opinions and not evidence of guilt or wrong doing.
Frank spreads the gossip and rumor by “Stace” that is filled with many false statements also.
Do you ever notice that no where does Frank state when he interviewed someone at Karatbars corporate for their side of these stories. Is there any wonder why?
Frank tries to use “guilt by association” as he claims “it is now easy to understand why so many of these gold bar MLMs are shutdown every year.” Wrong again Frank. Karatbars stands on it own, and will be judged on it’s own merits, not the merits of any other company.
I could write many more pages in rebuttal to Frank’s post above, but this should be enough to show that no one should take Frank’s review as accurate or believable. He is only stating his opinions without serious research and without contact Karatbars to answer the many things Frank admits are unclear to him and that he does not understand.
Give me a break Matt.
Leading in with ordained minister and seasoned networker, is that supposed to make me believe you have some sort of credibility?
I have personally earned more than you, so does that make me any better than you?
Stop being silly Matt.
The writer of this article is a colleague of mine (Adam) and if you just looked under the heading of this post you would have seen his name.
No one is trying to hide anything from you.
And the fact that you missed that point, leads me to believe your research skills might need a little work.
It also makes me think, that you’re affiliate with the company – surprise, surprise.
Anyway, I’ll let Adam comment on the matter.
Thank you for your comment, Matt.
Are you willing to point out that you have affiliation with Karatbars International?
For example, are you a member of leadership or major player in the scam? This information would be most useful.
1. When I enter Harald Seiz into a search engine, this is what pops up.
“The Karatbars International Business Opportunity.
Herr Harald Seiz from Stuttgart, Germany, and his sales rep vehemently deny that Katbars Int’l is an MLM.”
This is the exact definition of an MLM: “Multi-level marketing (MLM) is a controversial marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. … MLM is one type of direct selling.”
Are your affiliates compensated for all the sales they generate?
Under Karatbar International Direct Commission section: “Promote Karatbars Marketing Package(s) and earn up to 20% for each new package sale.”
Do affiliates get compensated for recruiting other people?
Under Karatbars International Unilevel Bonus section: “As a Bronze Director you need at least 2 lines where one line generates 4,000 points (8,000 Euros turnover) and the other line(s) or rather the rest of your organization generate 2,000 points (4,000 Euros turnover).”
You create lines by recruiting people and you get promoted based on the number of points that are generating. You get paid more for generating more.
For Harald Seiz and the rest of the major players, there is no excuse to claim to not be an MLM when it is.
Just because you say it is not an MLM doesn’t make it true.
According to law and according to definition, Karatbars Intenational is an MLM.
So the reason I say that I am brutally honest is for two reasons; one, some MLMs fail to be honest and pose as something they are not i.e. Karatbars International.
Two, I could care less about the what the founders or major players of a disingenuous company think.
This is the compensation plan link that I used for information. Notice the 2011-2016 so I didn’t use “old compensation plans.”
2. The following links are a collection of reviews gathered from simply entering “Karatbars International review” into a search engine.
The review was written in 2014 but if you pay attention to the comments, most recently, you will get a much clearer representation of the issues with KI.
Here is the truth about all MLMs, “Fact is, 95% of the people are gonna lose money, that’s it.”
This is because the gold is marked up to ridiculous levels.
Even the author says, “I have nothing against Karatbars, I just thought it was over priced that’s all.”
3. This is the next article from my Google search: http://factsaboutinternetmarketing.com/karatbars-international-scam-review-not-all-that-glitters-is-gold
One particular quote that grabbed my attention is “I almost lost a few of my best customers because they thought I lost my mind.
They literally laughed me out of town, calling me ‘nuts’ for trying to sell them a product that is about 40% over the market price.
In short, the affiliate program is a joke; an attempt by Karatbars International to shake off the ‘it’s a pyramid scheme stigma’!”
Ok, that is a lot to digest if you are a potential buyer.
Of course anyone affiliated with KI will shrug it off as conjecture but these are people that have tried to push KI gold prices to customers and lost business.
Selling gold at nearly 40% markup is disgusting.
Yet again, KI leadership and affiliates should be ashamed of themselves.
4. Here is a list of things that are always integrated into the selling points of gold:
• The dollar is fiat currency and worth nothing
• The next depression is coming
• The economy is going to crash
• Paper money isn’t real money
• Save in gold to store real wealth
Look I get it, a company is trying to make money, there is nothing wrong with that.
But to prey on people’s economic troubles and fears is nothing less of deplorable.
I love how all of these gold selling scams always seem to claim that they are legit but can’t even admit that none of these variables are predictable.
In your comment you even stated this exact point, which is a favor to me.
Why make this a KI selling point when you yourself said it is unpredictable?
5. Check this out…”Today, February 15, 2015 the spot price for ONE gram 999 fine gold is $39.50. Katbars adjusted gold value is $65. I am sure this is not a good deal.”
I have a feeling that the reason you mark up the prices to unimaginable levels is because you are compensating for the price fluxes in gold.
This way, if the price skyrockets for unpredictable reasons, you don’t lose out.
6. Here a list of reasons why Quebec AMF is banning KI:
• Karatbars’ activities are similar to a pyramid scheme;
• Karatbars already has over 5,300 “affiliates” in Québec;
• “Affiliates” do not sell products and are essentially promoting Karatbars’ activities, lured by the possibility of earning large payouts;
• Karatbars and its promoters are promising a return of $15,000 to $136,000 per month, representing returns of between 874% and 2,172%, only 12 weeks after the initial investment;
• Despite the AMF’s warning, information and investor solicitation meetings are still taking place where potential investors are being told that Karatbars is not under AMF jurisdiction;
• Some financial sector participants have attended information meetings and have been asked to promote Karatbars’ affiliates program;
• Contrary to what Karatbars and its promoters state, the company Prosegur does not store gold on behalf of Karatbars investors, raising concerns about the storage of gold purchases;
• The promoters of the Karatbars investment program are apparently fine-tuning their activities in order to find other investors.
Don’t try and question my integrity when you are defending a company that is part of a major problem.
These are serious crimes and not accusations.
I’m sorry you don’t see it from a customer’s point of view but not surprised either.
6. Here is a customer comment from a few month ago: “If I go back in time, I wouldn’t of never sign up for the package! Didn’t know that I couldn’t get a refund til months later when I look through some information that I found. No one wasn’t buying into this company, not even my mother. For months I went online and talked and share my referrals and I came back entry. I even listen to those conference calls while I was cleaning up for the man that introduced me to Karatbars to a neutral friend of ours. At this point, I am done with everythin that’s involved with Karatbars. Lucky I only bought the bronze package. I know that I can transfer to another person with a payment agreement but I don’t anyone who would want it. If you know anyone who would want my package, please let me know!!!”
It speaks for itself.
If you think that this is just a person that failed at promoting the product, why won’t KI release an Affiliate Sales Report to see how many affiliates are making money and how many are losing money?
This would help clarify a lot of the problems I see with your scam.
7. Ok, this is the last point I will make because I am getting bored with your conjecture and ad hominem attacks against me and Frank.
I am done defending my position of promoting Wealthy Affiliate.
The company has been around for over a decade and there is no recruitment necessary.
It has helped thousands of people create their own business and provide them with wonderful training.
One of the most important factors is that it is FREE to try out and you can even make money without buying a package.
I also know for a fact that the prices of their training program aren’t marked up by 40%, so this might be a turnoff to you and your kind.
I am guaranteeing that you cannot find a review that recommends going all in with KI.
All of the positive reviews that promote the company are from affiliates and it is disturbing.
Do all 3rd party reviewers a favor, clean up your act and we wouldn’t have to write brutally honest reviews about your scam.
I am sorry the truth hurts, but it is clear you are defending your company even at the expense of your integrity.
Karatbars International is lucky to have such a dedicated employee!
I would like to add my contribution to this matter by advising any one who is planning to join or start buying gold from Karatbars not to do so. PLEASE PLEASE DON’T!!!!!!
I was buying from them when I suddenly noticed that the our local jeweller was selling the same amount of gold for about £70 less in price , that is even with the storage , it was still so much more expensive. Also , when I was about to close my account, they only allowed me to request 9 grams of gold back, everything else behind the decimal point becomes theirs. I do not think this is fair, if they can adjust the amount of gold you can buy by the decimal point, they should be able to give you back everything, after you paid for it, without any hassle phoning or writing back and forth.
And then there is the membership card they encourage you to buy before you start to purchase gold, quite expensive and non refundable nonsense!
This is my genuine experience , I do not believe you are gaining anything by buying from them , only making the people who asked you to join rich. some business!
Thank you Frank for this information. I searched the internet just to get a quick review of karatbars before buying into it. Now I know to avoid being scammed. I’ve been scammed badly before and now these reviews, balanced from both karatbars and you Frank and colleague help me decide better.
Once again, that you Frank. Good bless you!
My bf of 5 years is doing this and im so ashamed he couldn’t finish school and puts it down by telling people to buy from ki and he hasn’t even made any money he finally started working but hes been brainwashed i have 3 kids and their only going to question his mentality his mom is ashamed too all his friends laugh I KNOW hes reached out to them but they know better he thinks by showing people his emotional problems and begging people to buy it shows the type of people they prey on and they too would have to find similar in customer. I have to rant because its ridiculous!!! Ps im from Canada they should ban it all mental cases the company is exactly thst its nice to make a person feel like they belong but now I know its nothing you should see my bfs posts on Facebook its super embarrassing hes failing and he just wants the image blames friends he doesnt even have so why would anyone find it appealing. Sorry for my rant.
Lets be straight about business. Any commerce is technically MLM, however, the MLM pyramids are created by a person who ultimately gets rich off everyone else’s contribution and most of the contributors are left holding the empty bag. Get into a business where everyone makes money, where everyone gets the opportunity to achieve a touch of success. Avoid schemes where there is a master who relies on his flunkies to bring home the bacon. MLM stands for Master Loves Money!
Why would I want to hold gold in the first place? Its a hedge instrument and nothing more. If- and its a BIG IF, we revert back to the stone age- what would I be able to buy with my 1 gram of pure gold in a card? (Sound quite StarWars’ish) I agree with the writer- this is selling up on emotions and nothing more. There is this old saying in marketing: “Every 5 minutes a $ucker is born”
No scam going on at all, and their gold is not overpriced. Those saying they are overpriced are talking about the classic cards, which have various security features. This is called a kinebar. If you compare any kinebar (gold with hologram features) such as the kinebars from Argo Hureus, you will find them all in same price range.
This aside, there is a cashgold product at Karatbars. If you compare the 1gram cashgold to the market price, you will find that it is within the same range. Thosé saying its overpriced are simply not properly informed.
I wondered why Mat doesn’t answer? Why don’t he come and protect himself and the company? Was that all he learned from them?
If he hadn’t written I thought the article was biased a little bit.
But I have no doubt I don’t want anything from them.
Unfortunately I have been a customer of theirs for years, was an affiliate and referred this company to a couple of friends. It wasn’t until I tried to take out my money years later that I realized that they are a scam. They have refused to buy back the gold AND they have also refused to send the gold to me and my friends despite countless email communications and calls. If you go to https://karatinfo.org/ you can also learn more about their SCAM. STAY AWAY FROM THIS COMPANY. I AM IN THE PROCESS OF STARTING A CLASS ACTION LAWSUIT AGAINST THEM.