Karatbars Int’l Scam Review – Not All That Glitters Is Gold


Update: August 6, 2018:

Not much has changed at Karatbars since the 2017 Update!

Original Review Date: February 15, 2015 – Gold Price $1,228.61 per Ounce, $39.50 per gram

August 6, 2018: Today’s Gold Price: – $1216,80 per Ounce, $39,12 per gram

August 6, 2018: Karatbars Price: 1 gram bar $65.34

Karatbars BUY-BACK or cash out price is about 5% below spot price!


Karatbars International Review Update! (February 2017)

Hi folks, here is the promised and long overdue update of my review from February 2015. I am going to leave the original unchanged, so newcomers can see for themselves why it drew so many ridiculously biased, and often time’s hostile and insulting comments from Karatbars’ Distributors

Let’s just look at the NEW facts, then YOU decide for yourself what Karatbars International is all about.


The Karatbars Affiliate Program!

WOW! They actually offer now their own affiliate program for people who choose NOT to participate in the Karatbars’ scheme, but are willing to promote the product to earn a commission.

I did join in 2015 to get access and insider info for my review, and to test the waters, so to speak. In March of this 2015, I heavily promoted Karatbars 1-gram & 2.5 gram bars on another website of mine that caters to investors in gold bullion and coins. In addition, I ran an email campaign to a list of over 3,000 potentially interested subscribers.

That didn’t go over too well. In fact, 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, nothing more than an attempt by Karatbars International to shake off the ‘it’s a pyramid scheme stigma’!


The Price Of The Karatbars Gold

There is really not much to say about that…IT’S OVERPRICED, and I am not stupid enough to pay $67 for a One-gram gold bar if I can get it for $49 from reputable gold dealers.

But I see and understand the big picture: The money for the perks the die-hard distributors love so much has to come from somewhere, right? And this money is being created the good old-fashioned MLM way.


Karatbars International Is An MLM…

…and therefore a pyramid scheme. Don’t take my word for it, though. Want to hear it straight from the horse’s mouth?

One of Karatbars’ Distributor’s just left a comment on this site and she says, among other things…


[….Karat Bars is a nice way to do it while building another income stream through recruiting other likewise people who want gold and want a return on their investment which Karat Bars provides. In the long run that overpriced gold gives members through the compensation plan a return on their money that far outweighs the extra $40 we pay per gram. As I mentioned, I’ve just joined but I see the potential of making a nice profit because I am viewing it as a MLM opportunity..] Tanya, April 7, 2016.

Watch this video and wait for the “AHA – Here is the PYRAMID Moment”



I am sure you didn’t miss the part where they actually show you the PYRAMID, or did you? It comes at about 18 minutes in…


Let me add just that much: If you are a great recruiter and able to build a strong down line (or left and right legs as KB calls it) of like minded strong recruiters, you may make it in the upper 3% of the pyramid.

If not, success will elude you, and you will sit on a bunch of over priced little gold bars you collected due to the ‘Monthly Gold Order’, which is required in order to qualify for all the MLM Perks.

I guess you are smart enough to calculate your losses IF you need to sell your loot at the buy-back price of roughly 45 bucks.

Let me make one thing very clear:

Karatbars is selling a tangible, although over priced product of value through Multi Level Marketing, a legitimate marketing strategy and IS NOT A SCAM!



Gold, Gold Ueber Alles (‘Gold, Gold above all‘ or ‘more than anything else’)” Sounds familiar to you? I am kind of sick and tired of the “doomsday apostles” telling us to buy gold because…..

  • karatbars international scam reviewThe 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


By the life of me I cannot understand what they are talking about. Let’s face it, 95% of all people struggle to make it from pay check to pay check. You think there is room left to buy gold and throw it in a box “to store real wealth”?

Or maybe build a huge underground “bunker” and hoard as much as you can, like Uncle Scrooge.

Don’t get me wrong, I understand the value of gold and think it’s a smart decision to have some gold in your investment portfolio. But look at the down side; gold doesn’t pay interest or dividends and it does not have a fixed value.

Like stocks and bonds, gold and the other precious metals are subjected to unforeseeable fluctuations and your investment is always at risk to lose in value.

Is buying and selling small amounts of gold a “Business Opportunity for the masses”?

Harald Seiz, founder and CEO of Karatbars International, thinks it is. Lets take a look at his company and the great business opportunity he claims to offer.


What is Karatbars International?

Karatbars, located in Germany, sells small quantities of 999.9 or 24 ct gold. You can buy as small a quantity as 1 gram. Gold is usually traded in ONE Troy Ounce bullion, equaling 31.1 grams.

What’s unique is the packaging of the gold bars. The piece of precious metal is embedded and sealed in what looks like a credit card and contains a graphic bar code with item details and authenticity certificate.


Karatbars review


Is Karatbars Gold Better?

They claim that theirs is the finest and highest quality gold available. This is a bogus claim, however. Their gold is like any other from any other dealers. 24 ct or 999.9 gold is cleaned of all impurities and NO alloys are being added. It is a very soft metal and, at this purity level of no use for any jewelry application.


The Karatbars International Business Opportunity

Herr Harald Seiz from Stuttgart, Germany, and his sales reps vehemently deny that Katbars Int’l is an illegal pyramid scheme. I agree, because Karatbars is selling a tangible product that people actually WANT to buy.

Fact is, however, that you will have to constantly recruit new members in order to increase your sales volume, and increase the amount of money you make.

Harald Seiz created a system that IS NOT a typical, and illegal, PYRAMID SCHEME. But you will not be making money from a commission for the sale of gold alone, but also from recruiting new members and making money off of their sales.

And that is still a standard MLM to me, no matter how you look at it. Particularly, since you will have to purchase Karatbars packages to qualify for certain bonuses, which generate the income for you and the other members of your sales group.

Take a look at the Karatbars Bonus Packages and the pricing thereof.


is karatbars a scam


Important: You can dismiss the “gold value” ($65 per gram) as this will be adjusted according to the “spot price” of gold at the day you make a purchase. This results in adjustments of the “Approximate Cost” as well.


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The Karatbars Compensation Plan

Every MLM I was involved with, or reviewed, has a rather complicated, and hard to understand compensation plan. The Karatbars plan is no different in that regard. Although they don’t have “pyramid levels”, per se, it works just the same. They call it “left leg” and “right leg” and speaking of “cycles”. It’s best you watch the video, so you clearly understand what I am talking about.



t’s not too easy to understand, is it? But the way the folks present it makes you think that making a couple of hundred thousand a year is easy.

Before you jump in and order your first package of “real value” in case our economy goes to hell (can it get worse than it was at the end of 2008?), or the sh**t hits the fan, let us take a look at the CONS with this outfit and the whole program.


The Cons Of Karatbars International

Karatbars Gold Is Overpriced

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. And don’t forget, you will have to pay shipping cost as well.

In comparison, you could buy a 1 gram piece today from JM Bullion for $53.00 and they ship it to you for FREE..


karatbars international scam review


Karatbars International Is An MLM Organization

Which ever way you look at it, you are not going to make money by selling gold. You are required to purchase a certain amount of gold for yourself AND recruit new “affiliates” to increase the value of your package. Remember, the “left leg, right leg and cycle” requirements that have been explained in the video?


Unrealistic and Exaggerated Earnings Projections

Herr Heinz is 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. Here you have it; the typical MLM/Pyramid hype and “lure-’em-in” tactics used by scammers.


Authorities in “Kanada” Issued A SCAM Alert

Karatbars has already over 5,500 members in the Province of Quebec and the AMF stepped in to “Protect investors from the Karatbar Scam”!


“The Bureau has prohibited Karatbars from directly or indirectly trading in securities under any form of investment covered by the Securities Act issued by Karatbars, whether via the Internet or otherwise. It has also prohibited them from acting as a securities adviser. The Bureau is concerned that, without these orders, the respondents will continue to solicit investors”.

This is a serious issue, my friend. Do you really think it would be a wise decision to risk thousands of your dollars under these circumstances? I would not, believe me.


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Conclusion to my Karatbars International Review

Diversifying your portfolio by adding precious metal, particularly gold, is a wise decision. But buy your gold from reputable sources like JM Bullion.

As you can see from the Product Structure (a little bit of gold) and the Compensation Plan (a lot of bait material) that Karatbars main focus is to recruit into their MLM system and “invest” into a typical Ponzi scheme with ridiculous return claims.

Just consider this: If you would to invest $2170 in their VIP package today, you would get only THREE one-gram gold cards with a “real value” of about $150.00. The person that recruited you, will get 20% commission. Where do the other $1,600 go to?

In my humble opinion, Karatbars International is a International Scam and you should avoid getting involved.


The Alternative To Karatbars International

It doesn’t have to be precious metals, but if you have a love and passion for specific products, go for it. You can learn how to build a website, create a blog and talk about anything related to the products. Write reviews and inform the visitors to your site about the Pros & Cons of these products.

It will take some time, but you can and will make a full time income if you are willing to work and put up some effort. I know, because that’s what I do.

And you can do the same. I am not making any ridiculous claim that you will make a 6-figure income in a couple of month and don’t have to work for it. But if you are willing to learn, put in effort and are ready to work to make the income you want, then you definitely want to check out My #1 Free Recommendation.

But it is up to you TO TAKE ACTION TODAY. Just check it out and determine if this is the right thing for you. By the way, it will not cost you a dime to take a look at “the other side”.

I hope you enjoyed my review as much as I did writing it and I would love to hear your opinion about it. So, don’t be shy and leave a comment on your way out.

That’s it for today. Thanks for stopping by

John Worthy


This program has taught me HOW To Make A

Life Changing Income Online!

Find out how you can too!


204 Responses

  1. Roberto D

    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 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.site/ 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.

    • Sonja

      Karat Bar International has defrauded thousands of people with their ponzi scheme of cyrptocurrency backed by gold. It is a pyramid program although that is not how it was presented to me. A friend encouraged me to sign up as an affiliate promising after their ‘hard fork’ conversion my investment would triple. I asked specifics, such as how can I get my gold or money after the hard fork. She shared their website and the process and assured me I could take either out at any time w no penalties.
      Ive got documents, screen shots, communications, VM, emails showing the extensive attempts at communicating with the company asking for guidance, assistance and asking for my return of investment in June. I sent a certified letter to the CEO Harald Seiz requesting they honor the hard fork or return my money. As usual, no response. My upline insisted I stay in the company as the crypto was supposed to increase by twenty five cents Dec. 16, 2020, Now if you go to the Karat Bar web site it is not active. Ive got hundreds of websites and complaints from other affiliates in the same position.
      How can we start a class action law suit against the CEO and Karat Bars?

  2. jereme

    I am by no means a recruiters. I share the information with people. If the person likes it, great! If the person doesn’t, no issue. I don’t hold grudges and I wont bash others. I get educated and found that Karatbars is a great company. Do I make money? No. It takes time. Ive been with this company as an affiliate for 19 months.

    I fail myself by not having enough time or energy to get in on the education more and helping others learn to save.

    I dont want my family to suffer from the next economy crash nor losing more dollar to the world.

    Remember, the worst crash the U.S. ever had was in 1929. The nation rebuilt, we had gold and dollar on the same level. Democratic President R.L. Nixon took the gold standard away and our Almighty dollar has fallen to almost worthless.

  3. Jay


    Don’t BUY or PROMOT Karatbars or Karatgold ICO because karatbars is misleading.
    If you buy into it, you will end up in the same situation I am in right now. Keep away from karatbars.com and karatbars international.

    I purchased karatbars ICO in April 2018(this is July 2019) and karatbars support told me that my karatbars ICO is missing.

    Can you imagine that? Missing ICO?

    I have a first hand experience of this. I purchased Karatbars ICO in April 2018(over One year today).

    I do not have access to it because karatbars support told me the coins are missing.
    I have asked them how can it GO missing when it has already been paid for? They never had any answer.

    Since 2018, I have emailed support@karatbars.com, help@karatbars.com, support@karatbank.io, support@karatpay.net, support@karatgold.io, mail@karatbank.io,

    support@karatbank.info, info@karatbank.sg for my missing ICO purchase. None of them seem to know where my purchase is.
    I have replies from Alexandru Mocanu (Karatbars) , Andrei Paraschiv (Karatbars) , Cristian Golumbovici (Karatbars) , Robert Szirovicza (Karatpay) , Irina (Karatbit Exchange) , Rutchel Garcia Help , Laura Nieto , Farida Akhounzada Help , Praneem Subba Help , Nelli Toboc , but the issue is that the purchased ICO coins are still missing since 2018, so the

    support tells me.

    I have also called their numbers +49 (0) 711 25 266 091, +49 (0) 711 128 970 00.

    They told me that the coins I purchased in 2018 are missing.

    Read reviews here: https://ethanvanderbuilt.com/2014/09/11/karatbars-scam-yes-it-is-in-my-opinion/comment-page-1/#comments

    Read reviews here: https://behindmlm.com/companies/karatbars-international-to-launch-karatbank-coin-ico/

    This is shocking for a supposed to be a multi-million dollar compamy. They can’t manage people’s $100, $200, $1000 or whatever amount of ICO coins you purchased.

    As of today 02 July 2019, I am still trying to get hold of somebody from karatbars network to tell me where my KBC ICO purchase is. Nobody seems to know.

    Karatbars is not a very good company to do business with. They are scam. You must avoid them by all means. They tell you to buy Karatbars ICO. It is a SCAM.

    After you give them your money, you do not and cannot have access to your coins because I don’t have access to mine because they are missing. This is my situation right now.

    How can that be possible? To me, they are a bunch of scammers. Forward this to Harald Seiz if you know him, see him or have his email address.

    I will keep you posted on my Karatbars Karatgold ICO purchase SCAM.

  4. JustME

    Just a simple question….

    Did anyone ever take the effort to scratch off the little layer of gold to uncover the real scam unterneath ?
    As we all know gold is a soft metal, so give it a try…..
    Or proof me wrong….

  5. Stephen

    I am a VIP affiliate with Karatbars. What I find interesting with your opinion, and every other opinion out there that bashes the company, is that you have to demean a reputable company in order to push YOUR money making opportunity. EVERY SINGLE website with a negative review of Karatbars does the exact same thing, and I find that pathetic to say the least! Why don’t you just market your program with a stand alone website rather than tagging it into a review of Karatbars? There are THOUSANDS of people who are making a very lucrative living with the Karatbars compensation plan…have you talked to any of them?
    And when it comes to pricing of gold through Karatbars….unless you want to pull money out of your pocket and acquire gold, every gram you receive through Karatbars can be purchased with your weekly commissions, so, in essence, you’re receiving “free” gold. It wouldn’t matter if the price of a gram of gold was $75.00-150.00…all you need to do is utilize your commissions to pay for every gram….hence, NEVER pulling another penny out of your pocket to purchase gold. I don’t know of any other company that gives you that option.

      • Andre Ledoux

        Ahaha soo funny any gold product that sells x% above spot price is a scam, fact!

        • John Worthy

          I allow myself to stoop down to your level. Nowhere in my review do I state that selling x% above spot is a scam. However, it shouldn’t take an Einstein to figure out that something is not kosher when an investment HAS TO RETURN a 40% increase in order to just BREAK EVEN.

    • Don

      Hilarious. Any company that sells gold bullion at a 65% markup to the spot market price is not “reputable” in any way shape or form. It’s also ILLEGAL in the US as the Federal Trade Commission defines any MLM that actively recruits people to sell as an “Illegal Pyramid Scheme”. Look it up.

    • Bumsy

      Can you please also give a logical response to an existing concern of the poor Mr Jay?? I tink more effort should go to his concern…

  6. Milton Kimbini

    Just read your comment about Karatbars. The business idea has just reached our country in this part of the world Southern Africa. Seems a very good idea to us. What is your review now of the company in 2018

  7. Richard


    In 2015, I heard a commercial on the radio about some popular company selling gold. I had saved up some money and thought I was ready. I called the company and a broker answered. I said, “I think I’m ready to buy some gold.” His excitement level increased as he took my name and number, home address and email address. Then he cleared his throat and said, “You do realize that there is a $10,000 minimum purchase required.” As graciously as I could I excused myself and hung up the phone.

    So, while you complain about the prices of Karatbars and that no one can afford gold, I agree to the end that if we all were limited to this other company I called, we would never have it. But competition makes for a better marketplace. If you don’t want to buy from Karatbars, that is your privilege. But at least with Karatbars, there are no monthly fees to maintain the active savings account nor is there an inventory purchase REQUIRED like I’ve seen in every other MLM I’ve joined. But why you think Karatbars is an MLM is beyond me. It would seem you are fixed on it and that your prejudice prevents you from seeing that Karatbars is an E-Commerce company that incorporated the best of both worlds. Internet marketing and MLM compansation. But you can keep spewing your views and it won’t matter in the least to the 124 other countries that are active with affiliates.

    • John Worthy

      Back then when Karatbars started out, it was an MLM with the whole schmeer that comes with them. KB has been investigated by the Canadian equivalent to our FTC and very closed to get shut down, just like MOBE and Digital Altitude here earlier this year.
      They changed their business model after that and started a real affiliate program that allows folks to promote KB gold as affiliates just like Amazon and all the other companies. I did update my review to reflect the changes. However, I tried to promote KB gold to another list of mine and got ran out of town, so to speak, because of the price of KB gold which is, unfortunately, 20 – 25 higher than from other brokers. I am talking about lighter weight bars than ounce and up.
      And by the way Richard, I signed up with KB back then in January of 2015 when Affiliates where not Affiliates but had to purchase a certain amount (package) every month…typical MLM then.

  8. Edith Rashford

    I’m glad I was able to recover my fundsfrom these fake investors , I would have had to file for bankruptcy, thanks to Geminihacks (dot) (com). I was able to get a hold of these scam brokers and take back my money. I would gladly refer anyone.

  9. Michael

    Karatbars International to really change my life.
    I struggled a lot in different opportunities because difficult to develop when the company is not 100% legal.

    With Karatbars I no longer know stress or fear. We move at our speed without obligation to make or pay anything.

    Good article anyway, well done for this analysis

  10. Gwen T

    Here’s the way that I judge a scam:

    Are customers receiving what they paid for?
    Is the product, itself, as claimed?
    Are affiliates being paid for their services as promised?

    If all of the answers to this question are ‘Yes’ then NO ONE is being scammed or defrauded.

    Now, are there some terrible, inexperienced, and questionably ethical salespersons/affiliates out there? ABSOLUTELY! Anyone who hasn’t been taught proper business etiquette can shine a bad light on any for profit and non-profit organization. WE need to be wise enough to understand this and be more responsible with our opinions, being sure not to badmouth an otherwise ethical business name, concept, product line or service simply because the person who introduced you to it weren’t well-suited for the work to be performed.

    As a Karatbars affiliate for the past 2 years, I can say that I have purchased Karatbars gold; received it in a timely manner; had it tested and verified as pure grade; and, have received every penny of commissions due to me for each and every acquisition that I or my enrolled Customers have acquired. I enjoy showing others how to invest in a proven hard, tangible asset that is also a natural commodity that has been around since the beginning of time, and used by kings, queens, emperors, and modern government entities to pay-off debts for centuries. And, for the record, I thoroughly love being a part of a global team that supports one another. That’s why people join churches, groups, clubs, etc. For a sense of belonging, comradery, and kinship. Karatbars provide this to me, along with the means to earn an extra stream of income in the short-term, and for building wealth for the long-term. Karatbars wins. I win. My Customers win. Win-Win-Win. Call it what you will. I call it AWESOME!

    Before I go, let me leave some food for thought: If our entire banking system was hacked, and none of us could access our bank accounts, or use our debit or credit cards (which are tied to the banking system), how would YOU pay for food, gas, and other living essentials? Me: With 1, 2.5, and 5 gram gold bullion bars that any savvy businessperson will recognize as another source of currency that is exhangeable for goods and services. No; Karatbars isn’t the other source of acquiring gold; it’s just a great way to do it in small, affordable increments delivered to your door securely via FedEx for saving for the future appreciation, and as a backup currency, should there ever be a need to use one in these unpredictable, technologically advanced, yet vulnerable times.

  11. fran jacobs

    Please to anyone who is thinking of joining karat bars , please don’t. It is too expensive and will earn you a loss.
    They will give you pittance if you try to sell it back to them , you cannot request the whole amount of gold , your gold , in their possession , only what is before the decimal point , but they will not approximate this in your favour when you are buying from them.
    the packages are a rip off, even with this ,the gold you can buy , genuine gold as well , from your local dealer is still cheaper,

    don’t join karatbars, unless you are committed in making other people who are not wise to keep joining

  12. Jane

    Approve this one, it’s edited.

    It’s in the USA now. Some kid from my gym tried to sell me on this. He picked me out of my gym from my mercedes. I am an attorney and he invited me to coffee, I also do marketing for corporations. As well as, a partner in my firm.

    I thought looks like a nice kid, pretty normal instagram, knew a little bit about social media analytics. And in all honesty, he notice and liked my necklace and I thought that was sweet. I meet him at a local coffee shop I love for their lavender lattes. He was meeting with some of his “business partners” when I arrived. Once they leave, he sits down with me, I already got coffee waiting. He doesn’t order anything to drink?, but milks the free water. As I finish my small latte, he didn’t ask if I want anything else to drink. That was my first sign. Con artists never want to pay. Then he starts talking about his motto in life. Claiming you attract people who are like you. Then claims to be the youngest in his family too, and to have a sister 30 years older than him. Followed by, he has the same amount of nieces and nephews as me, and that they are similar ages, having one nephew that’s actually older than him….. My thoughts, I see you viewed my public information in my Facebook.

    Now it’s a scam for sure. Anddddd what follows this, GOLD!!! I have been looking at business to buy so naturally I played along, knowing it’s a pyramid scheme and he is a con artist. Gold cards and using “feeling” for business decisions, I had to stop myself from laughing. At one point he got so excited he lost his train of thought, were I repeated the last three sentences he said, followed with an almost sarcastic, “basically “GOLD””. Then I find out his real job is working for coke and he was fired as a car sales men, and hopped a bunch of cities. And how he hasn’t gotten along with a lot of people. Lord slimy. The icing on the cake was, when he called his reference a bitch. That’s a huge red flag. To demean a woman is the first sign to anti-social behavior and con artists.

    As we are walking to my car, he acted surprised at the car I drove. How much more of a con can he be? Then he asks, can I drive your car and didn’t seem to care that he just told me he’s two years younger, his brother is a CEO and Johnson and Johnson and that wait for it…. he drives a 1991 Honda by choice. I let him drive my car after checking his valid insurance, breathalyzing and valid drivers license.

    After two hours of entertaining it, I drop him at his car. Said add me on fb, to see the mind frame someone like this has. His facebook has 2 pictures and no information. He claims he wants to be in the fitness business but doesn’t work out everyday, and has no social media. Super scam… avoid avoid avoid!!!

    • John Worthy

      Thanks for your comment Jane. Well, they changed their ‘modus operandi’ somewhat to make it look legit. I really tried hard to sell their product as an affiliate for commission, but couldn’t find any takers. Having said that, I need to explain that I promote gold (bullions and coins) from other brokers and make a decent amount of commissions, but my customers declined my Karatbar offers. I’ll leave it at that.

    • Michelle Porter

      One guy is hardly a reason to avoid the company anymore than one server being a reason to avoid a restaurant. We joined Karatbars in 2014 and are happy to have accumulated gold over 5 years that we would not have otherwise been able to do. Some people only want to save money in gold – and there is now a cryto currency backed by physical gold that is publicly traded on 5 major crypto-exchanges. The author bashes the price yet if you compare with other companies who offer one gram increments in a security card (kinebar), you’ll find comparable pricing and no option for affiliate income – and he joined! Karatbars has always done what they’ve said they’ll do. There are 500,000 customers and affiliates worldwide and they are the largest client to FedEx in Germany due to gold shipments. They have a contract with Mastercard and their own branded prepaid card. If the company were a scam, none of these things would be the case. People will not always do their own research.

      • John Worthy

        Michelle, appreciate your input. Let me explain something to you. First off, when I wrote the original review, way back then in 2014, Karatbars was under investigation by Canadian authorities due to their PYRAMID Structure, among other things. Ever since, and I reflected on that in my updates, Karatbars did change their official image by introducing a ‘normal Affiliate Program’ that pays commissions to people that want to ONLY be affiliates (in the meaning of REFERRERS) and NOT part of the still in effect ‘LEG BUILDING’ to earn commissions or gold.
        Secondly, I love to invest, but not just for the sake of having it sitting in a box, being embedded in a plastic card, or confirmed in a document WITHOUT drawing any interest, or, as in the case of gold, bearing the risk of even losing value. Just spend a few minutes and look at the behavior of gold over the past 5 years…there is NOT a penny earned as far as volume is concerned. So, if my investment is 30% higher than the real value, AND I cannot even recover the purchase price when selling it back, what is the reason for HAVING GOLD? Just food for THOUGHTS

      • Michae Amann

        Hello Michelle. Very much agreed.
        There are many claims made in this review that are contrary to the truth, misleading and even dishonest.

        ‘NORMAL AFFILIATE PROGRAM’ Introduced After Court Ruling
        I registered with the company back in 2013. Even back then one always had a choice to join as a customer or affiliate. It was always possible for one to earn income from direct monthly sales from a free account, or weekly from the compensation plan via an optional one-time purchase of a business package. There was also never any monthly payment requirements. It was never mandatory. There are persons who registered years before me who never bought any packages, nor even any gold, yet their accounts are still active. These are some of the things that attracted me to the company in the first place. To say otherwise is misleading and deceptive.

        I followed the Canadian court matter in 2014 up to the time it concluded in 2016. It followed AMF warnings about securities as alluded to in the article, not due to issues with the compensation plan nor structure, though everything was thoroughly reviewed. After all the reviews and investigation, Karatbars was cleared of all issues with the exception of one – the Karatbars World Pool, which has since been adjusted to be compliant. There was, therefore, no change to the compensation plan due to the court matter. So actually, Karatbars has already been tried in a court of law, investigated and passed with flying colours. Many of the charges that were leveled against them by skeptics and legal authorities were already addressed in the ruling. To say otherwise is dishonest, misleading and deceptive.
        For those interested in reading the full tribunal judgement (It’s in French, but Google Chrome and other tools can easily translate the page in English) check the following link. It is very interesting reading.

        It is important to note however that in 2015 the SEC did, in fact, update it’s compliance laws for among other things, making additional emphasis no not making income claims or ‘enticements’ in general for any company type structure (MLM, Affiliate, Direct Sales, etc.). I downloaded and read the entire document at the time. As such, by the time the court matter was resolved in 2016, affiliates were advised to be cautious concerning the 12-week plan that was promoted by affiliates, particularly in North America, as it was by then non-compliant with the updated SEC laws. In any event, the 12-week plan was never mandatory. It was always up to the individual to save if they could. There was never any penalties for not participating. To say otherwise is dishonest, misleading and deceptive.

        Note also that to complain that the physical gold is more expensive than the spot price of gold, and anyone selling gold above spot price is a scam, is also dishonest, misleading and even ignorant (of facts). By definition, the traded, or spot price of non-manufactured gold IS less expensive than physical gold. The process that the LBMA uses for setting the spot or ‘auctionable’ price is illustrated here (via gold.org) https://www.theice.com/publicdocs/IBA_Gold_Silver_Auction_Factsheet.pdf.
        If further, one were to visit sites that do sell physical gold bars, one would notice that ALL of them sell higher than the spot price. This is because of the manufacturing costs involved in converting the traded or raw price into the bar format (eg in 1g sized increments, with serial number embedded, with relevant encasing and security features). Knowing this process also shows that stating the obvious that gold bars are more expensive than spot is very dishonest and misleading. It is the nature of the industry for physical to be over spot.

        A typical example of another physical product in the industry is to compare JM Bullion’s price, as recommended in the article. Sorting lowest price first, the best price for 1g gold bar on JM Bullion today is the Valcambi Gold 1g bar (See link at https://www.jmbullion.com/gold/gold-bars/), which at the time of writing is priced ‘as low as USD 57.49. Note that to get the ‘as low as’ price, one has to obtain at least 25 units, and only if paying in cash or bank wire. The cost of 1-9 units is actually USD59.49 each (provided it is bought in cash) or EUR53.54 at today’s EUR:USD exchange rate of 0.9. By comparison, today’s price for 1g Karatbars Cashgold, the equivalent to the Valcambi gold bar product, is 51.90EUR for one unit – less expensive than JM Bullion’s best priced product!!!! Not to mention.

        However the true comparison for the Classic Gold product is actually the UBS Kinebar, which has similar security features to the karatbar and is also sealed in a card (unlike PAMP Suisse). Today’s price for 1g of the UBS Kinebar is EUR87.8 (https://www.suissegold.ch/en/product/1-gram-ubs-kinebar-gold-bullion-bar-999-9-fine) whereas the comparative price for the similarly produced 1g of Classic Gold from Karatbars today is EUR 68.03 (even before the 3% discount that the company gives). In fact, UBS 1g gold is approx 30% higher than Karatbars!!!!!!!

        So to claim that Karatbars is selling gold much more expensive than competitors and is thus a scam like comparing the cost of a Toyota with a Mercedes Benz and calling the Mercedez seller a scam because they can get cars cheaper elsewhere. Compare apples with apples for a fair comparison. To say otherwise is dishonest, misleading and deceptive.

        So in summary, just for the few points listed:

        1. Karatbars introduced a ‘Normal Affiliate Plan’ only after court case – FALSE.
        Link to detailed court documents posted above.

        2. Karatbars charged due to Pyramid Structure – FALSE.
        It was a result of warnings concerning securities, not based on compensation structure.

        3. Karatbars gold price is higher than spot price – TRUE.
        But this is also true for ALL physical gold products!!! Any gold dealer charging spot price for physical gold will add production and other costs when delivery is requested, bring it up to the real comparative price.

        4. Karatbars gold is 20-25% more expensive than from other sources. – FALSE
        Actually, Karatbars Cashgold product is less expensive than the best priced gold product from JM Bullion.

        5. I meant Karatbars Classic Gold is 20-25% more expensive than from other sources. – FALSE
        The original article writer was comparing the Classic Gold product with JM Bullion, which is not the same class of product in security features, manufacturing or product format. The true like for like is actually against UBS gold, which is also encased in a card and 30% more expensive than the similar Karatbars classic gold.

        If one were to follow the logic of the writer for the reasons that Karatbars is called a scam, then UBS, JM Bullion, heck even Mercedes Benz corporation are all scams.
        Karatbars was already cleared in a court of law way back in 2016. Yet persons are still misrepresenting the facts. Not sure why.
        One needs to do proper due diligence before making the kind of conclusions as posted in the article. To do otherwise is dishonest, misleading and deceptive.

        • John Worthy

          First off, learn to read before you speak. I made it very clear, and it is printed in RED, so people like you won’t miss it, where I CLEARLY state that Karatbars IS NOT A PYRAMID SCAM since they made changes Secondly, Karatbars Classic Gold IS 30% more expensive. Forget about the ‘product format’, I couldn’t care less, fact remains that INVESTORS have not made a dime investing money in Karatbar gold. I am tired argue facts with brain washed folks acting like lemmings..

  13. Jane

    It’s in the USA now. Some kid from my gym tried to sell me on this. He picked me out of my gym from my mercedes. I am an attorney and he invited me to coffee, I also do marketing for corporations. As well as partners in a firm.

    I thought looks like a nice kid, pretty normal instagram, knew a little bit about social media analytics. And in all honesty he liked my necklace and I thought that was cool. I meet him at a coffee shop, he is meeting with some of his “business partners” when I arrive. They leave and he sits down with me, I already got coffee waiting, he doesn’t order anything to drink? That was my first sign. Then he starts talking about his idea in life that you attract people who are like you. Then claims to be the youngest in his family too, and to have a sister 30 years older than him and the same about of nieces and nephews and his nephew is also older than me.

    Now it’s a scam for sure. Anddddd what follows this, GOLD!!! I have been looking at business to buy so naturally I played along knowing it’s a pyramid scheme and he is a con artist. Gold cards and using “feeling” for business decision, I had to stop myself from laughing. Then I find out his real job is working for coke and he was fired as a car sales men, hope a bunch of cities. And how he hasn’t gotten along with a lot of people. Lord slimy.

    Then as we are walking to my car, he asks, can I drive your car and didn’t seem to care that he just told me he’s two years younger, his brother is a CEO and Johnson and Johnson and that wait for it…. he drives a 91 Honda by choice. I let him drive my car after checking his valid insurance, breathalyzing and valid drivers license.

    After two hours of entertaining it, I drop him at his car. Said add me on fb. His fb has 2 pictures and no information. He claims he wants to be in the fitness business but doesn’t work out everyday.

    I checked out the website and started laughing…..

  14. Eugene

    No other company is going to pay you in Gold for your referrals like Karatbars International. Plus Karatbars Int. has a great back office dashboard that is very easy to understand. Yes the gold is a little higher price than other dealers. But the other gold dealers will not offer you seven streams of income. Nor is their gold as high quality as Karatbars International. Every gold bar is 999.9% pure gold bullion. We are not an MLM company. We are an eCommerce company with many great products no other company has…NONE.

    Not one time did I hear anyone mention the huge discounts you get with Karatbars International, or all the incentives that go along with being an affiliate. As a member their are many benefits to saving gold, especially when you’re not paying for it out of pocket. Don’t let someones opinion or negative perception discourage you from joining this amazing opportunity. People are getting rich beyond their wildest dreams. #Midwestgoldclub

  15. Rob

    John Worthy,

    You are a beauty! I enjoyed the article and have a different perspective on gold now. My dad was approached by one of these blood suckers so I did some research and basically just told him to steer clear.
    If you like the idea of gold or silver or whatever precious metal it may be, go for it but please don’t shove it down other peoples throats to make your pathetic commission check. Its a greasy sales job ami right?
    Im sure most of these people claiming its worked out for them are out sourced companies paid to write uplifting reviews about this skivey company..
    Keep up the good work buddy!

  16. Janice

    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!!!

    • John Worthy

      Janice, I tried promoting this thing, and had made not a single sale. Maybe it has something to do with ethics that won’t allow me to push harder. I take a lot of heat from ‘pyramid’ freaks who revert to name calling, threatening with million dollar law suits and BS like that. I just say it as I see it, and stay away from all the ‘false glitter’.

    • Arnold

      Work hard on the skills to do the business, otherwise, you will fail and then complain that you werent able to make sales. I know people who have made generous income from this because they worked towards it and never gave up. Blame yourself and nobody else.

    • Omari Newsome

      I’ll take your package if you dont want it. Do you still have it? I know I’m late

  17. John

    Hi John,
    I just had a look at the price of gold on the JM Bullion site to compare with KB! Yes you purchase Gold at just over 50 bucks, only when you make a minimum of $100 purchase!!!!!!

    I joined KB just over 1 year ago and did nothing with it. I have accumulated over 12,000 points which NEVER expire until they are matched and a payout occurs. Additionally, I have over 600 in my downline (right side). Not bad for a system which apparently sells OVER PRICED Gold and is a PONZI Scheme.

    My business partner must have had it lucky with his business of over 8000 partners, of which the majority are CUSTOMERS!

    I suggest you do your due diligence and research a bit mor thoroughly with your claims:

    “Conclusion to my Karatbars International Review

    Diversifying your portfolio by adding precious metal, particularly gold, is a wise decision. But buy your gold from reputable sources like JM Bullion or APMEX.

    As you can see from the Product Structure (a little bit of gold) and the Compensation Plan (a lot of bait material) that Karatbars main focus is to recruit into their MLM system and “invest” into a typical Ponzi scheme with ridiculous return claims.

    Just consider this: If you would to invest $2170 in their VIP package today, you would get only THREE one-gram gold cards with a “real value” of about $150.00. The person that recruited you, will get 20% commission. Where do the other $1,600 go to?

    In my humble opinion, Karatbars International is a International Scam and you should avoid getting involved.”

    I noticed you are capturing people’s data for YOUR list and promoting Wealthy Affiliate also – Shame on you

    • John Worthy

      Thanks for your comment. You know, I am getting tired of arguing with knucklehead defenders of this MLM scheme. I applaud you IF you are lucky and make some money. As far as me promoting Wealthy Affiliate is concerned, I am not ashamed promoting a company that is in business for over 10 years now, and has helped tens of thousands members to start their online business. I am not ashamed of promoting the best online course that teaches people how to build a solid foundation for a sustainable business. I am not ashamed of promoting a 100% LEGITIMATE learning center that does NOT require their members to promote WA if they don’t want to, but teach all aspects of HOW TO MAKE MONEY ONLINE. I am not ashamed of promoting a company that HAS NEVER been under scam investigation by the authorities. Unlike Karatbars, which was, (and still is in some counties), and had to make significant changes to some aspects of its comp plan to appear legitimate.

      And lastly, I am not ashamed of telling people about the scams and unethical stuff that is floating around on the net.

      • Dave

        Hi John Worthy,

        I agree with John. Karatbars cannot be called either an illegal pyramid scheme or a Ponzi scheme. The price of the gold is not overpriced either, but priced properly for a product which is 1 gram of gold sold by the gram. If you look at other companies which sell a similar produce, 1 gram by the gram of 999.9 percent gold, they all are within the same price range. Some companies to mention are Credit Suisse, Pamp Suisse, Argo Heraeus, and UBS. In fact, UBS is the most expensive of all of them – being within the 100 dollar range for a gram of gold. The reason why it is more expensive is because it is what is called a kinebar – which is security features that come on the physical gold that ensures its purity. This is extremely useful to have when one wants to sell the gold later, it eliminates any doubt that the gold has been altered. All kinebars are more expensive, and Karatbars is also a kinebar. So one has to take into consideration that it is the price of a gram sold by the gram, and the fact that it is a kinebar.

        JM bullion does not let you purchase one gram alone, so their advertising 1 gram as around 50 dollars is just a marketing gimmick. If you buy more than one gram, you’ll get a volume discount – which is like any other product. Same thing with Karatbars, if you buy the 5 gram gold card, its cheaper per gram than when buying the 1 gram gold card.

        These are all subtleties which are important – to ignore them is to be very misinformed. One has to look at all of the details instead of jumping to conclusions.

      • Louis

        I’ve been a Karatbars Affiliate since 2014 and very pleased not only with the product but also the company as well. The gold isn’t over priced when you compare apples to apples. Google how much a 1gram (Kinebar) 999.9 24 Karat Gold bar from any other company and compare that to a 1gram (Kinebar) from Karatbars. Your content is misinformed. You wouldn’t compare a ford to a Mercedes so understand with anything in the market, you will have different asset classes. Make sure you research Kinebar. Also, let’s discuss the price of gold shall we. Do you know that a once of 24 KaratGold Bullion in India is over 3,000$? Do you really want me to blow your mind? Go to http://www.usdebtclock.org and scroll down to the right hand corner and see what the true value for a ounce of gold is in today’s dollars cost. Who do you believe? Wall Street and their Gold price which is set by the bankers or a government website. You may want to do a little more research before you start misinforming the public. Let’s see if this post stays on your website.

  18. Debbie

    John Worthy, unfortunately, we were one of those that got caught up into this adventure with Karatbars. As of today, we have not received our VIP package….are you familiar with how to cancel this transaction and how we would get our money back?

  19. nowitstime

    Who would buy gold laminated in plastic? Wouldn’t this make it very difficult to have it’s purity tested? $40 above the spot price will almost exponentially increase your losses in case of a major dip in value. The comments about and defenses of pyramid schemes: look at a dollar bill printed by our gov’t.. How’s that pyramid scheme working for everyone? Very little trickles to the bottom.

    • John Worthy

      There is no problem with the quality of their gold. It’s real and as good as from any other reputable broker. I have a problem with the pyramid scheme, which they deny it is.

      • Dave

        Hi John,

        Karatbars is in fact not a pyramid scheme. They were officially investigated in the Montreal court because of false accusations by the AMF in Quebec, and the judge concluded that Karatbars is perfectly legal and a company of high integrity. As a result of this, they have officially launched in Quebec as of December 7th 2016.

        All of this talk by uninformed people like yourself is simply without any good basis.

  20. Harold

    I love the fact that this site is looks at the pros and cons of this business. Nothing is ever 100% good or bad but you get out of it what you put in. I joined about 3 weeks ago, I did my research on the price of gold on sites like apmex etc but the compensation plan associated with karatbars is simply awesome. I’ve already started to see returns on my initial package purchase and they keep increasing as I develop my network. By nature I’m very skeptical of MLM’s but the mere fact that there aren’t any monthly fees, it was an easy decision for me to get started. On top of that, what you would pay to do a typical sales/marketing course is alot more expensive. I took this opportunity and I can say with the training materials and the income stream plus the gold, the returns greatly exceed the initial investment!

      • Matthew

        There is no monthly order for Karatbars. Stop trying to discredit them to fulfill your own agenda.

        • John Worthy

          Thanks for your comment Matthew. Well, maybe they don’t call it monthly order, but AUTO ORDER, or am I reading something wrong here. Here is a screenshot of Member Account Page. LEFT MENU TAB. Fact is, without placing monthly order, the chances of making commissions as affiliate are ZERO

        • Matthew


          Sorry but this is misinformed. You can have a whole team of people in your downline whom you have sponsored, all purchasing weekly or monthly grams of gold, and youre earning commissions from those transactions regardless of whether you have activated your autoexchange.

  21. jd

    No way you can make money paying more than retail for the product any product. As for people saying I am struggling to pay bills so I buy gold to save to make money off it please refer to first sentence. organizations like this prey on the poor and or uninformed to make money. This so called company is a joke stay far far away from them and keep your cash

    • John Worthy

      Thanks for the comment jd. The funny thing is that KB, like every other commodity brokerage, LOVE PAPER MONEY. Maybe I should try buying some of KB gold and pay with gold bars. Would be interesting how that would work.

  22. Jay

    Would your life change if you made $10,000 within 21 days & $20,000+ every month thereafter?

    Call 800-704-8681 anytime to find out how!

  23. Tanya Dennis

    Just joined Karat Bars this week so I cannot defend the company but I can defend the MLM format. I was successful making over 6 figures for five years in another MLM until other companies jumped on the band wagon and competition lead to the eventual decline of our company. The fact that the gold is overpriced does not bother me as I understand money to compensate members is necessary. People who join Karat Bars need to understand that they will not make a profit selling gold, however the product is solid and that is what will attract other distributors to join. This is where you make your money. Gold is not an investment, it is money. To buy gold and stack it for a rainy day is for rich folks that don’t require a constant stream of income. If you’re rich you can afford to buy and horde your gold without expectation of a return on your investment. For the middle class we want and need to buy gold and Karat Bars is a nice way to do it while building another income stream through recruiting other likewise people who want gold and want a return on their investment which Karat Bars provides. In the long run that overpriced gold gives members through the compensation plan a return on their money that far outweighs the extra $40 we pay per gram. As I mentioned, I’ve just joined but I see the potential of making a nice profit because I am viewing it as a MLM opportunity. I believe that is the right attitude for people looking to buy gold and invest in a business opportunity. Recruiting other people to buy gold is the only way to see a return on your investment and there’s nothing wrong with that.

    • John Worthy

      Hi Tanya, thanks for your comment. You hit it on the head. IF you like MLM, and obviously you do, go right ahead before the pool of potential recruits runs dry, as it surly will at some point.

      • Max

        She is lying. I read an identical comment in another website. It’s too long and accurately descrobed to be one comment from a people who has just joined it. Bullxxx !

        • John Worthy

          Thanks for chiming in Max. I am not sure if she is lying or not, but she is an MLM fan, or should I say “freak”?

    • Arnold

      Tanya, first get the facts right. Go check the price for one gram of gold from UBS, which is one of the most reputable financial institutions in the world. It is even more expensive than Karatbars, at least between ten and fifteen dollars. Also compare with 1gram from Argo Hureus or Pamp Suisse. They are in the same price range.

      Why ? Because you are making a comparison between gold in the same asset class. Compare any LBMA certified gold, sold by the gram, and which comes with security features (called a kinebar) – and you will see Karatbars is priced properly for its asset class.

      Enough with misinformed, false information. Im getting tired of seeing people comment on this subject with next to zero knowledge of the different asset classes and how gold is priced as a product. Also dont make the common error of looking at spot price for 1gram and then make the conclusion that Karatbars is overpriced. Nobody gets gold at spot price, it is not a price which is relevant for normal consumers like you and me. So learn also what spot price is and how it is different from retail price.

  24. Dunca

    I have been in Karatbars for 2 years now. I can tell you that I have not made more than $300 CAN. It is very difficult to recruit new people and the duplication thing seems to work for only a few. The price per gram of gold is high so any potential profit does not exist and when you want to cash out at retirement the bye back price is low so any profit must be met by a surge in gold prices while you held it. I have met a lot of people who struggle to make any kind of income form this.

    • John Worthy

      Thanks Dunca, and it will get worse when the pool of possible victims (I mean recruits) dries out. And it will soon. Then all the folks sitting on their overpriced gold and no cash to buy food.

    • Matthew

      Thats your experience. Ive been in the company for 8months and am doing it full time, and it is doing far more than covering my basic needs.

      Dont blame the company, but yourself for your lack of success.

    • Janice

      At lease you made something. It’s been almost a year since I bought a package and I stop promoting it months ago. This company is not for me. When I do hear negative comments about Karatbars on YouTube, these die hearted fans get pissy mad start attacking like animals.

  25. ANC

    If you hadn’t tossed in your own sales pitch at the end, this article would be more believable. Now I already think Karatbar is a scam and was trying to find any explanation for how anyone could think otherwise, but if I was someone who wasn’t sure, as soon as I got to your own pitch for your “#1 FREE recommendation,” I’d walk away convinced that this entire article is nothing more than an attempt to dissuade people from a “legitimate” company, and run to Karatbar. You need to remove that pitch. As it stands, it’s clear you’ve got something to gain by convincing people of other scams.

    • John Worthy

      You are so wrong Aria. First off, I am writing to tell people about the good, the bad, and the ugly, and since there is more ‘ugly’ out there than good, of course, I will write about these. What you call ‘my pitch’ is an honest recommendation of a good way for people to start their online business, without the bad and ugly.

  26. Ji


    First, I enjoyed your website posting on Karatbars. I am looking for information on Karatbars because I received an invitation to get an access for it. The comments related to your post on Karabars provide some in-depth insight on how someone would/could look at Karabars differently. For that, thank you for your effort on doing this.

    I am writing to you to see if you are interesting on writing a portion or a character for the book I am working on. I decided to do the book with another writer just to expand the views and keep the book alive so to speak. It is my first book and it is not quite completed. Since I am considering all possibility of getting the story published and trying keep the story alive, I figured I can’t just do this on my own. I would also like to inquiry your knowledge on marketing an alive book.

    I would like to make myself very clear: I don’t have any affiliate marketing in place. I am interested in having an e-business that publishes and sells E-books. There are companies that obviously doing those things already. By no means that the book I have outweigh others, but it wouldn’t be the same if I am not the one involved in developing the book. Of course, there are tons of writers I could ask help from if you are not interested doing this. The reason I would like to have you write the story with me is I would like include your section of life that consists of loosing whether to be wealth or other meaningful things. There is a catch: the story you write about yourself not necessarily all true but with your own conviction and you also need to incorporate an object – an umbrella into your theme. Obviously, this is not just a plain loosing sad story about how much you lost from an investment. It is about something you gained from loosing and it is about how you kept things going on with your life. Some imagination and some sense of humor would definitely help the book to be more cohesive when the sections are incorporated together.

    If you are interested talking to me about it, please respond back to the email listed above. I will not follow up with you if I don’t hear from you. Thanks again for the great posting on Karatbars!


  27. Chuck Coty

    John, I think your analysis is solid but, in my opinion, you lose a great deal of credibility by attempting to parlay your critique of Karatbars into personal gain. If you provided a simple objective analysis without the sales pitch, your critical report might be taken more seriously. I realize that the true believers will never be persuaded because they have a vested interest both emotionally and financially in the company, but for those who are still a bit more objective, when they come to the “my free recommendation” link, much of what they’ve read will undoubtedly be a red flag.

    Apparently it’s quite a common tactic since I watched a YouTube of a self professed “scam buster” talk about all his scam busting experiences, only to begin pitching Karatbars about 1/2 way through. It seemed kind of an unseemly marketing ploy. Nowhere in the video description nor in the video intro, was it disclose that this guy is a Representative of Karatbars. Though scam busting is not an official position, it’d be like a representative of the SEC speak about his escapades fighting white collar crime only watch him beginning to pitch a private stock offering of a company he represents. Serious conflict of interest.

    I looked at Karatbars as a favor for some clients and I must say that I agree your analysis. I didn’t find anything particularly appealing. Using the concept of owning gold to recruit people into an MLM, seems somewhat disingenuous. You could take any product that has some sizzle (a miracle drink, super vitamins, survival gear or fine wine), mark it up considerably, create the ultimate MLM, and you’d be off to the races. The product is completely immaterial except for the fact that it’s used as the lure. It’s my view that if the product and it’s value is not the focus, something is not right. And it should be noted that buying gold (which is not a bad idea for a small percent of your portfolio) at such inflated prices will severely diminish it’s effectiveness as an inflation hedge.

    I keep reading Karatbars apologists saying that their gold, though expensive, is not only very pure but at least it’s coming from a reputable source. I guess people need to do whatever they can to justify the exorbitant cost, because that should never be an excuse to mark something up so severely. There are plenty of credible places to purchase all kinds of precious metals.

    I’ve always said that if an MLM could provide a excellent product at a very competitive price, you’d not be able to contain the growth. But that never seems to happen because inherent in the MLM concept, is the fat markup. If the product in and of itself is not attractive, then the MLM will eventually die and the disillusioned reps will head for the next great thing. It’s actually quite a sad tale.

    I find their mantra, “Exchanging your paper money for a superior currency” to be somewhat misleading. Sure, a precious metal has intrinsic value unlike our fiat FED currency, but last I checked the price of spot gold has gone from 2012 year-end of $1,664 to $1,063 today. That’s a 36% decline over 3 years! Add that to the substantial markup and you have a not so attractive currency. So as far as it being a “superior currency”, at least in respect to value, that’s not been the case lately. Of course, since we’re always a moment away from a global collapse (tongue firmly embedded in cheek), anything’s possible.

    One last comment. Your title, “Karatbars Int’l Scam Review – Not All That Glitters Is Gold” though catchy, is kind of misleading. I realize you’re not calling it a scam, but by putting scam in the title, the immediate implication is that it’s a scam. Though I don’t think it’s a wise usage of funds, it’s clearly not a scam. People may not get much for their money, but my understanding is that they get what they pay for.


    • John Worthy

      Hi Chuck, thanks for your comment. When I wrote the review Karatbars was in ‘hot water’ because of their pyramid scheme. Obviously, they made many changes. I am now a member of Karatbars for only ONE reason. To get inside info and then I will upgrade my review accordingly.

      • Edan

        Hi John,
        I have also recently been pitched Karatbars but this time it is in conjunction with pooled Bitcoin mining and through a company called ‘Bitknock’. The Bitknock site seems to be purely through the South African market though and is pitched as a Chinese held and managed firm who’s directors are also advertised/known – hence a ‘safe’ company to do business with because “most Network marketing companies don’t share this info” of who the various directors are.
        Karatbars is pitching a 2% per day return whether or not you introduce people in you ‘down-line’ or have anyone of your ‘affiliates’ buy actual gold… which in my experience seems decidedly un-MLM like. Having said as much the whole 2% per day is a massive return and sound “to good to be true”. They are also touting that you cannot earn this return unless you also create a profile on both the Bitknock website and Karatbars website. So that’s two profiles you now have to create in order to earn money from either.
        A man by the name of Tony De Gouveia seem to be the main guy behind this whole deal and is the driving force behind his growing base of presenters/followers all of whom claim and are willing to show those being presented to the money they’re earning from Karatbars and Bitknock.
        One last bit of information; Karatbars are providing their clients with a Visa/Master card that is loaded with funds from the above mentioned earnings. This funds are transferred by you and from your daily percentage ‘earnings’ onto your Karatbars card which is then available for use anywhere that Visa/MasterCard are accepted. It’s further been touted that Karatbars are starting their own international bank due to launch this year 2016.

        I realise that this may still be to soon but please can you advise on when your updated review will be released and also if at all possible you could do a little research into Bitknock?? From what I can gather they (Bitknock) have their webpage hosted by a company in Panama and nothing else is listed of who the owners are?! Why would a Chinese run/managed firm not have their webpage hosted in China?? Bitknock is also and seemingly almost solely for the South African market….

        I realise that I’ve provided lots of food for thought/investigation above John but any further information related to the above would be very much appreciated as it would seem just another avenue/tactic that Karatbars are now using to get their system out there.

        Thanks for the posts John. Additional information is always welcome.


        • John Worthy

          Hi Eden, thanks for your comment. I am an affiliate now for about 2 months now, have one affiliate in my downline. Nothing happened on this person’s end. I am promoting KB on another site and not very successful. As far as their site listed as “Registered in Panama”:

          That’s a “who-is” protecting privacy thing. I am registered here in the US, hosted by Wealthy Affiliate, but for $2.99 a year your private info is not revealed. My site show in ‘who is’ as registered in Panama. I don’t want the world to see my real address and phone number’

          The bitcoin thing scares the hell out of me. I will get an update done soon

        • John Worthy

          Hi Alan, thanks for chiming in. No, they are not lying. To the contrary….their gold is as good (and clean) as from other reputable brokers. “Soft” means that .999 gold (24 c(k)arat) is too soft to be used for jewelry…..that’s why the best available gold for that purpose is 18 ct. Alloys to harden the material are added, otherwise, ring settings would never be strong enough to hold gemstones.

        • Alan

          Thanks so much for your response. Ok, I’m in Karatbars. Been in it for 3days, lol. However, I stepped back and watch this company for about 1yr and observed a friend of mine who got in. He was a banker in real estate and he said that job is the ultimate scam. Your house isn’t your house which is his motto. Stop paying the mortgage. haha. Well, now he’s making money hand over fist with Karatbars(just saying). And he is no longer in banking. He’s doing Karatbars fulltime, I ain’t joking. He told me, dude, this is the real deal. Again, just giving an fyi from his own experience. If I didn’t personally know this guy, my attitude probably would’ve been different. Now what did it for me, is I called Mastercard because that’s how individuals get paid. Money loaded onto that card. I called Mastercard cause I have one. I ask them, is Karatbars a scam, are you all about to sue them?! He laughed and said no. They are the real deal. They have a legal binding agreement with us. Now… if Karatbars was a joke, I believe it would be the biggest law-suit known to man and Mastercard would probably get the Feds involved for using their logo and emblem.

        • John Worthy

          Good luck with it, Allen. I really mean it. More in my update, which I am working on right this minute

        • Matthew

          Only completely uneducated and uninformed people would think this is a scam.

  28. Philco

    No business ever succeeds unless there is money made. Brick and mortar businesses are paid just like MLM”s. The owner makes the lion’s share, management is his/her front line, employees are the bottom pay scale. I have worked for other people and their businesses most of my life. Today I have nothing to show for 20 years of work and I was in the management level. I also participated in an MLM company for 4 years before I had a very severe car wreck and lost my business during the time I was recuperating. I was earning over $8400 per month. I worked hard to get to that point. This MLM paid me for 6 or 7 months going forward. Slowly but surely my residual income went away since I was not there to continue building it. I also owned a brick and mortar business which closed the minute I got hurt. So, I think you can understand why I am pro MLM. Nothing is accomplished in any business without hard work!

  29. Joyce Daniel

    Hello John, Ive taken my time and gone through all the comments……..
    And I was able to come to the opinion that karatbars like every other company is a company set out to make profits( including yours too)… and not just that, its also an opportunity where everyone can make money by referring others to save in gold which makes a lot of sense to me.
    But it seem like your problem with them is that their gold is way over priced, which isn’t so bad cause people make legitimate money from it.
    Am beginning to think that maybe you were paid to write such an article against them??…. and you’ve been commenting that you would write an update on your review about them and so far you haven’t, for months now???
    Please do an update on your review cause your article is way outdated….
    And as for that Tucker VanHorn of a big mouth, he’s just being an arrogant big fool.


  30. JImmy

    First of all. i thank you so much for this write up. I’m at the verge of investing in KB. One official came to make a presentation in Nigeria and we were all marveled at the great insight .I really cant understand what you mean by Scam? scam to me means fraud, it means something not real. Are you saying the whole schemes are fraud? If you can recommend other Gold dealers that is transparent and reliable i would love to know them. I need something to fall back on later in the future that is the reason i want to invest in Gold from any reputable source.

  31. Brigette

    Dear Mr Worthy,
    I am a Karatbars Affiliate and can give you the REAL scoop on its legitimacy. Karatbars is Legit. I have received commissions paid out on weekly cycles( including my first pay within a week of signing up) and I have earned free perpetual Gold which I have verified to be certified 99.99 24k LMBA certified through a reputable jeweler. Yes, Gold can be purchased elsewhere for cheaper amounts by the gram, however this is an affiliate company and everyone has the opportunity to earn substantial residual commissions and generate free weekly Gold which no one else is doing on the level of Karatbars Intl.

    A pyramid scheme is an illegal investment scam based on a hierarchical setup. New recruits make up the base of the pyramid and provide the funding and returns, given to the earlier investors and recruits above them. Now please explain to me if Karatbars is a pyramid scheme, then why some weeks I have downlines who earn higher commissions than I do? I thought only uplines and early investors make all the money in a pyramid schemes?? How is it possible that I, along with others have recruited people into Karatbars and/or other network marketing companies who have downlines that can earn more than we do? If you are going to research, please do it properly because that is NOT a pyramid scheme. Corporate America is actually the pyramid scheme with a BIG CEO and COO earning the millions and billions and the many employees slave day to day for thousands and hundreds.
    You should do research on Network Marketing as an industry and learn about names Eric Worre, Les Brown, Tony Robbins, Jim Rohn, Susan Sly, Gloria Mayfield Banks Holtons Buggs and so on…. Do not study amateurs who come into this business expecting the world; with no work, no effort, no entreprenuerial skills or willingness to change their mindset so they call it a scheme because they invested money under false pretenses, didnt do anything and didnt get paid. Network Marketing companies and Karatbars are all about the same gifts.. Freedom and Lifestyle. This industry just gives anyone willing to work hard enough for it the SAME oppourtunity as the next person without race, ethnic, social ecomonic, or age restrictions and prejudices; the very things that hold us back from promotion in Jobs. Amateurs and ignorance is tarnishing this industry, I have made legitament 4 figure weekly commissions in Karatbars for the last year and have earned free gold which is in my hand right now. That was based on my minimal efforts but I did not just stop when the first 2 people I spoke to said no and quit like 90% of people. People join people not businesses, so please learn more about the industry. There are many great mlm and network marketing companies,and people should only go with products and services they truly support and believe in. If people do their own thorough research and due dilligence, networking marketing and mlm are great oppourtunities for everyday people with an entreprenuerial spirit to get a taste of running their own business without the usual huge financial and legal risks. Network marketing is not for lazy people looking for quick money as often promoted, its just access to the opportunity of a lifestyle of luxury and freedom for those who work hard enough for it.

    • Tracy

      Wow! Enough said and you put a bow on it. I am a VIP with Karatbars International. Every business adventure pushes the nay sayers out of the closet. Do your research and when making claims against a business have the facts and not your opinion.

  32. Tucker VanHorn

    I work in the retirement planning industry, and someone from Karatbars called my company recently, and asked some questions about being able to buy Karatbars stuff with their retirement account.

    I’d never heard of Karabars before, so I did a Google search, and came across this article.

    Now I’m going to get nasty. Scrolling down through the comments, I kept shaking my head in disbelief. If the comments here are representative of people in the MLM community, maybe the community should be renamed the Society of Dunces.

    I’ve been a business owner all my life, and I can’t believe how little people here understand even the very basics of business principles. They don’t seem to understand that any MLM has nothing to do with a product, and everything to do with signing up other people. A good friend of mine signed up for an MLM about a decade ago, and tried to pitch me on it, and it was just as much nonsense as this Karatbars is.

    Its clear that few of these commenters have ever actually owned their own business. MLM’ers think entirely upside down. In the real world, if you own a business, everything you do is based around the product or service you provide to consumers, and you have to ensure you’re offering the best product at the lowest cost, or the consumer will choose someone else. This is business 101.

    MLM sets that on its head. It is not based on a product or service, but instead relies on convincing more and more people to sign up and become part of the system. The sign up fees, and other ways they charge “affiliates” ensures a steady cashflow, but again that has nothing to do with providing a product.

    One idiot here went so far as to claim that having people work under you at McDonald’s is the same as an MLM structure. Its difficult to figure out how to respond to such vapid stupidity.

    A couple others claim you have to provide your SSN or the equivalent to a gold dealer when you buy gold. A simple google search or phone call to any dealer would have confirmed the opposite, but instead of taking the time to make sure they know what they’re talking about, they all fall back to their conspiratorial BS mindset, and spread their ignorance. When you buy gold and silver, you buy it at the cheapest price point you possibly can. Only a full-blown idiot would subscribe to becoming involved in a company that charges 20-30% more for their product that the market does.

    You MLM’ers should stop this scammy nonsense, and go out and get a real job. Go out and produce something of actual value that benefits society. Produce a product that gives consumers a reason for buying it, or a service that adds value to your customer’s life. In other words, join the real world, and stop scamming other people by convincing them to become involved in this BS.

    It just dawned on me why all of you think the same way: no bona fide businessman would have anything to do with an MLM, because its all BS. We, the business guys in the real world, that bring value to people’s lives by giving them steady employment, that produce actual products that people actually want – we see MLM for what it is.

    As a result, I see now that most everyone involved in MLM is a lazy no good idiot, who’s just looking for an easy way to make a million bucks.

      • Joe McDaid

        Perhaps John you could explain my post of October 2nd isn’t published, yet this extremely negative and down right spiteful comment from October 15th is published. – It would appear that only negative comments are allowed; and therefore you are stifling a balanced debate?

        • John Worthy

          Joe, I have to apologize. Your comment landed in the spam folder, which happens every now and then, particular with longer comments. As you can see, I am not avoiding debate or other people’s opinion. You are aware that I am in the process of yet another research into Karatbars and an update will be forthcoming soon.
          I just glanced over your lengthy comment from october 2nd and will reply within 24 hours

        • John Worthy

          I am working on it. Signed up as affiliate and looking desperately to find the frigging compensation plan on their site. Again, not a good sign as far as I am concerned. if they have nothing to hide, they could tell new affiliates how much commission they will get FOR BROKERING a deal only without having to purchase their member package.

        • Joe McDaid

          John, If your sponsor is not helping you and showing you how to navigate the back office, contact me and I would be delighted to help you. The compensation plan is quite plain and actually very generous. brokering a deal commission ranges from .5% to 6% depending on the level of business one does.

        • John Worthy

          Joe, I am sorry. Working on a project that takes priority right now. Have not posted anything new either. I will be done soon, then I will respond to all open comments

        • John Worthy

          Are they lying? Maybe, maybe not. I signed up as ‘affiliate’ about 4 months ago, trying to find buyers. My customers from another site of mine simply laugh me out of town. Karatbar’s price as of today, 4/5/2016 $68, JMBullion $40. Why in the world would any sane folk spend 70% more on a commodity that can lose value over night? Because it glitters? I was able to sign up ONE person into my downline wha also had not made a single sale. I myself are not stupid enough to buy their over priced gold.

        • Dan

          I think it’s funny how people keep saying that it’s just crazy to buy 1 gram of pure gold for $30 more than you can get it somewhere else yet people everyday pay far more for 10k, 14k, and 18k jewelry. How about paying $78.00 for a 10K Yellow Gold 18″ Rope Chain, or $179 for a 14k Yellow Gold Figaro Chain Necklace, or how about $498 for a 10kt Yellow Gold Figaro Chain. All selling at Walmart. Talk about paying for gold that is waaayyyy over priced!

        • John Worthy

          Dan, I appreciate your comment, I really do. However, what you seem NOT to understand is that we are talking about bullion gold AND NOT jewelry, which is made of lesser quantity gold and is a luxury product to wear somewhere on the body. Sure, you could drill a hole through a 32 gram bar and wear it dangling down your neck. Just saying. Fact remains that Karatbars gold bars are overpriced, necessary to pay the commissions

    • Ryan

      I disagree, Karatbars has helped me save gold every month and i am building a nice portfolio. Rich people like you are so ignorant and have no idea that people are struggling to pay bills and save at the same time. Karatbars is helping people that can’t afford to buy ounces or kilograms of gold at one time. So i tell anyone asking about Karatbars to ask your questions to hard working people that work pay check to pay check, Mr van horn maybe you should go back to the drawing board and look up “humility” and live in the shoes of less unfortunate people.

      • John Worthy

        Ryan, since we are so ignorant, we have not tried to pay our bills with little gold bars. Paying $67 for a 1-gram gold is insane, utter stupidity. Be honest to yourself. /Check your NICE portfolio and let us know how much you paid for it and how much you would get IF you would have to sell today.

        • Dave

          I disagree completely. Since joining Karatbars, I have been able to build my gold savings which I never thought was possible before to do. I cannot afford ounces or kilograms, but I can afford a gram at a time. This aside, I think it is wiser in some ways to have grams instead of ounces because it gives you more flexibility as to what you can do with the gold – how much you can convert to cash and how much you can save. I like that kind of control. With ounces or kilograms, you cannot break off a small piece and then sell it – you will be forced to convert the whole ounce or kilogram into cash.

          So besides making gold accessible to the masses, selling by gram also offers more flexibility with what you can do with the gold. Sorry John, I think you are too obsessed with the price per ounce concept. You don’t consider that there are many people who cannot afford ounces or kilograms, you also don’t consider the advantages of having gold in grams. Finally, you haven’t considered that the price of one gram of gold of the kind which Karatbars is selling is properly priced in the first place. Compare any LBMA certified gold, sold by the gram, which also has security features, to Karatbars, and you will find it is not surprisingly in the same price range. Check Pamp Suisse, Credit Suisse, UBS, or Argo Heraeus.

  33. Declan O'Doherty

    I have enjoyed reading your article and the comments thereafter. I am amazed at the BS, mainly from your side of the argument. First and foremost, Gold is undervalued, and this may be realised in the very near future. You do not invest in Gold in the short term. Therefore only a certain amount of your hard earned cash should be diverted into this form of investment. I would consider it a very good form of a pension. Just look at how pension companies have performed in recent years. Total devastation.
    Commission is paid by Karatbars mainly by the amount of Gold purchased in your downline. You get a bonus for personally bringing someone else into the system, but only you gets this bonus. Yes, you have to manage your downline to optimise your commissions but Karatbars gives you the tools to do this in their back office which is supplied FREE to every affiliate. Also 20% of commissions is automatically converted into Gold for yourself. They have 3 different weights of Gold cards which you can purchase, 1gm, 2.5gm and 5gm. The five gram bar is offered for the price of four grams. So there is 25% of your 33% gone in one go. The price of delivery is €13 per delivery. This covers anything from 1 gram to 99grams; thereafter it is free. Karatbars will store your Gold free for up to one year.
    The authorities in Ireland have regarded Karatbars and the system with which it works as legitimate as long as four conditions are met. 1. There must be a physical product. 2. You cannot take money from others to invest for them. 3. You cannot show them your earnings from Karatbars as an incentive to induce them to get involved. 4. You cannot purport to offer financial advice. The way I have seen Karatbars promoted here fills all four conditions. Before you say it may come unstuck on the fourth condition you would have include every business on the planet.
    In conclusion, when you see The Vatican getting involved in Karatbars and I also include Real Madrid Football Club, you are looking at some of the shrewdest investors anywhere.

  34. Joe McDaid

    Been reading Different blogs about Karatbars for some time now and always liked this forum. I have been following this Karatbars Thread for a while now and taking each argument on its merits and using those arguments in my own due diligence on Karatbars International.
    Now before the beatings start, I have to disclose that I am a VIP affiliate of Karatbars for the past 8 months or so, 6 of those I spent researching the opportunity including discussing the company with the Irish Central Bank. I joined as an affiliate because I was looking to acquire bullion and I wanted to try network marketing. I have clients involved in other network marketing companies and they make a decent income (part time and full time).
    Im a qualified tax and business consultant (essentially a specialised CPA) and have a small but profitable practice in my hometown in Ireland. My reputation is my cornerstone of my income so I have to protect that no matter what – so I cant get involved in anything even remotely fraudulent.
    So to address some of the points raised I want to offer my opinion on them.
    1. Is Karatbars an MLM?- I find this argument somewhat redundant; in that what difference does it make? the compensation plan is clearly defined and the terms and conditions of being an affiliate are extremely detailed. Therefore it is what it is. If that is something you cant/wont do – then don’t participate in it.
    Is it a pyramid? The actual question is it an illegal ponzi scheme? Simple answer is NO its neither a pyramid nor a Ponzi scheme. Its simply a referral based network and Whether we like it or not, this business model is, not only here to stay, its going to become the norm as both companies and people are seeing the benefits that affiliate marketing provide.(low overheads).
    2. Is the gold overpriced? The most common mistake people make is to look up the spot price of an ounce of gold online and divide it by 31.1 and come up with a gram price. This is a very naive way to price any product by simply comparing trade price with retail price.
    Others check out some of the other suppliers and normally see a price advertised that at first glance is perhaps 15% lower that a Karatbar. But its only when one delves a little deeper does one find that that 15% cheaper price is only available if a large quantity is purchased.
    People should understand that small amounts of anything are always going to be proportionally more expensive due to fixed costs of production.
    A further point I note, is that people compare a loose 1gram gold wafer (normally contained in a plastic blister) with a Karatbar; this is again a poor comparison. A loose 1gram wafer is not assayed and therefore not certified. A karatbar is assayed LBMA gold and so long as the card is not tampered with remains a certified making it a more valuable product.
    One must consider what a Karatbar is, its highly secure hologram and DNA protected LBMA gold – this is highly significant.
    The “Cheaper” 1 gram gold bars out there are therefore much less secure, they are not LBMA and not hologram protected. You may be ok with this but If you want to compare like with like, compare a “kinebar” with a Karatbar – that should give you a much fairer comparison.
    There is also added value within the Karatbar product range. Look towards the 5gram card and all of a sudden Karatbars is as competitive as any other producer. Similarly if one purchases a sizeable quantity delivery is free. Knowledge of the Karatbars system and how Gold Bullion is sold is imperative before making a judgment call as there is strategies to reduce the gram price further.
    3. The dual system. Again opinions are plentiful about this. Similar to above these opinions come down to the individual – either they can do it or they cant.
    From a due diligence point of view one looks at 2 things. 1. Does the company deliver on its payment promises?; and 2. is the product genuine? In both cases Karatbars is positive,
    1.they pay exactly what the affiliate earns on time every time. So if someone purchases a dual system package and doesn’t get a return its simply down to them. Ultimately this is a business and not everyone succeeds is business – Karatbars (or any other company) DONT owe you a living – you got to go out there and earn it.
    Unscrupulous individuals could try exploit the Dual System and try sign in affiliates that are not appropriate for the program. It is unlikely that these individuals will ever get a return on their investment. This is an unfortunate fact of life; but Karatbars per say cannot be held responsible for this. (Can budwiser be held responsible for every drunk?)
    In terms of the gold; this is a very genuine fear for people to have. Therefore we got the product analysed by a gold expert in our own town. We picked 3 random units from different individuals and had them assessed; in our expert’s opinion it was exactly as described i.e. 999.9 24k 1gram 2.5gram and 5gram LBMA gold bullion.
    Finally, I noted an argument which stated that if everyone requested their gold at the same time, Karatbars couldn’t deliver and would ultimately fail. Indeed this is a very valid point and may be the case; unfortunately the same can be said about every financial institution the world over – if every deposit holder came to with draw their savings at the same time… eg Northern Rock Bank in the UK. SO again one must consider this in relation to what is actually the case and not some theoretical hypotheses so one has to consider the cover ratio and what is acceptable level to them.
    Karatbars offer a very tangible and valuable product and almost every Licensed financial advisor would recommend that everyone hold some physical gold in their portfolio. Karatbars offer a product to fit that market they do not offer financial advice and use an affiliate program to get their product to market. Their compensation plan is what it is and pays out as defined. The product as far as anyone can reasonably establish is completely genuine.
    hope this helps
    best regards

      • John Worthy

        Nicole, here is my reply to your 4 comments and also to those you claim I have not responded to.

        First off, my Update on April 16, 2016 to the original review was also meant as reply to the handful of comments I did not respond to at the time they were written. Secondly, I am not running this blog “to discredit other companies”, as James mentioned in his comment, to which I did reply at that time.

        But let me say that much. Again, I cite from the 11 points of James’ comment:

        3. You do not have to buy their products to earn commissions (Auto-ship). This is true, and one of the changes made AFTER Karatbars was under investigation for running a pyramid scheme. However, it is impossible to earn affiliate commissions due to the fact that KB gold is simply over priced, as I laid out in my update. I tried my best to make at least ONE sale over a period of 5 months, but couldn’t. See my update, if you wish.

        Now, let’s talk about the claim that a monthly AUTOSHIP is NOT required. James 4: They do have an optional associate program if you want to increase your percentages of commissions, which is an outright misrepresentation of facts. In order to join their associate program YOU MUST place a monthly autoship order. Or is it the FIRST menu item at the affiliate site for no reason at all? Take a look


        And then there is James 11. There is what they call a dual system (looks like the typical binary that I have seen many MLM companies use, and I tried once, and hate.) But after further study it is just a way to pay out commissions and you are given units on the left or right to cycle with 50 on one side and 25 on the other. (you can cycle monthly, weekly, even hourly and commissions are paid on this weekly on a debit Mastercard. ( there are no levels, this goes on indefinitely.

        If this is not the typical PYRAMID SCHEME, what is it then? Are you able to answer that without twisting facts? And what do you call it if not levels?

        Like I said in my update, KB is legitimate ONLY for one reason…they do sell a tangible, albeit way overpriced product. Other than that, I stick to what I said in my review and update. KB is an MLM pyramid. Those that are able to build strong left/right leg downlines will undoubtedly make a killing. I feel sorry for those who can’t and linger at the bottom of the pyramid. And when the famous “you know what” should hit the fan (which I DO NOT wish to happen), those down there will have to accept their losses.

  35. Dev

    I think you are making money by posting things about other companies that you know people will be looking for. And this is where you make money sure its good business but why don’t you talk about the banks and governments are making people all over the world poorer and poorer each day with their growing debts and exaggerated interest rates and so on. The question is why is it wrong to make money by promoting a business? So many people work in companies making them money by bringing in their abilities and skill for a paid by the hour scheme and a kick in the ass when the company doesn’t make enough profit and you leave your position flushing your dreams down the toilet. What’s wrong in making money why do you want people to stay on the bottom line on the ladder?

    • John Worthy

      Hi Dev, thanks for your comment. Yes, I make money with Affiliate Marketing and reviewing other products. As far as Karatbars is concerned, let me say this much. Since the time I wrote the review, Karatbar obviously made some changes to their so-called Affiliate Program and I am aware of the facts. I am in the process of, again, research KB and will update this review accordingly, if necessary

      • TLF

        Hi John
        I am wondering if you have an update to this. Have the changes karatbars made resulted in a different opinion?

        • Joe McDaid

          HI TFL – If you want to discuss anything about karatbars, drop me a line.. I have researched this company to the nth degree. I will tell you exactly what the company is and what it is not. My promise is to give you the information, answer any questions you may have and let you make up your own mind.

  36. James

    I am interested in your opportunity “Wealthy Affiliate”. My only problem is that almost all the reviews I see floating around the web and on youtube that claim most opportunities are scams, somehow lead to a “Wealthy Affiliate” link. I don’t want to put down other companies and make money, so my question is, does “Wealthy Affiliate” have other techniques that I can learn and use other than using the “Scam” technique? “Wealthy Affiliate looks so far like a good opportunity.

    • John Worthy

      Hi James, yes you can operate in any way you wish to. I chose to exploit scams and crappy products because I have been scammed a view times before I joined Wealthy Affiliate. I have a couple of other sites, niche sites promoting certain products. It’s completely up to you what niche you want to target. Come on in and join me as a starter member so you can get a feel of what is in store. It’s free for as long as you you want. Premium membership gives you all the bells and whistles and is a very affordable $47 a month, which includes free weekly webinars and free hosting for up to 25 sites.
      Use this links and will mentor you personally. http://factsaboutinternetmarketing.com/wealthy-affiliate-review-does-wealthy-affiliate-really-work

      See you on the inside

      • Michael Gallina

        Hi John, isn’t WA a MLM? Also are there any MLM’s you would recommend? Thanks, Mike

        • John Worthy

          Hi Michael, NO, Wealthy Affiliate is not an MLM. There are no up- or downlines, no commissions of other folks referrals.

  37. dav

    97% of people are poor because their thinking is poor.
    if you are verymuch good in knowing scam and discribing it, why cant you start your own business, with all intelligency to describe scam.

  38. frompoland

    Hi John!
    Thanks for your article it’s very hard to find some an objective opinions on the Internet. I’m from Poland and KB is a new thing in our “gold market”.
    I’m not afraid of buying little overpriced gold from KB because it’s not easy to but small units of gold but
    I’m considering about this “scam” structure… if you have good quality product you don’t have to earn money from “affiliates”, that’s why i can’t trust them. They don’t earn money from selling gold but from selling members packages they don’t even tell us about saving money for future like insurance company (nobody really cares about that). So something is wrong with them but i still don’t know how it will end maybe you know?
    The potential client is not a person who is interested in buying gold but person who wants easy money for making a structure and it’s good for them when they start quickly.

    Sorry for my English.

    • John Worthy

      Thanks for your comment, my friend from Poland, and you don’t have to worry about your English. I understand what you are saying. You know, I make a full time income with affiliate marketing promoting products that people buy and want. I tried to sell KB gold as an ‘affiliate’, meaning NOT trying to recruit them to become a member there also. No luck, because their gold is far too expensive. You only can make money with them if you find like minded people willing to buy their starter pack and recruit people. They vehemently deny the fact that they are a pyramid scheme; but you know they are if you study their compensation plan.

  39. Deb


    I found all of this very interesting. Has anyone here ever heard of Forever Green.org and used their products? Or their latest MLM with Power Strips and Solar Strips under the name of FGXpress???
    I got a phone call last week from a gal in TN. The compensation plan here with Karatbars is a copy of the plan for this company-who claims no one else has it like they do-Bull! Two leg system-same thing-same thing people-an MLM all the way and I only listened to about half of that 15 min video they want you to view first.
    She and her husband have been doing this Karatbar thing since June of last year and to date she says they have earned about $200,000. Well, supposedly you can start out not buying a thing-so tell me how the heck you can sell anything if you don’t buy anything to sell?
    John is exactly right on here-all you other people wake up-if you want some gold to protect your money a little-go buy some coins at a gold dealer and keep the profit they will take from you to buy some more gold for your money.

    • John Worthy

      Hi Deb, thanks for your comment. Sine the time I wrote the review, karatbar did make some changes in certain areas of their operation. I am in the process of yet another research into this outfit and let you all know what has changed.

  40. Jonathan

    Hey John,

    I appreciate your review and being honest, but JM Bullion is not an e commerce “affiliate” organization so you can’t compare the two. Two different animals. Again you may call this a pyramid scheme but the pyramid is inverted. It’s upside down. You can’ become a business owner. You can make more money than the people above you. Also everything is shaped as a pyramid. Any job you find out there there is someone above you making more money off of your work. Where does the rest of the money go with the packages? You get Direct Euro discount cards and percentage discounts cards for a year. Great package to start your business and get your gold cheaper. Please find all of the facts before you post a blog like this. You seemed biased for some reason leaving out specific details that make Karatbars great. Should check the facts bro.

    • John Worthy

      Jonathan, thanks for the comment. I did find out all the facts for my review. I am aware that KB did make some changes and I am in the process of doing yet another research. So, look forward to it.

  41. Jonathan Baldwin

    And again before you compare Karatbars to another company make sure it’s the same type of company. JM Bullion isn’t an E commerce affiliate based company. Not the same deal. You can’t compare the two.

      • Matthew

        Karatbars is officially registered as an E-Commerce company by law, and meets all of the conditions set forth for being registered as such.

  42. Jonathan Baldwin

    Thank you for the review but I have to answer your question considering the left over cash after buying packages. Not only does Karatbars send your first gold in the mail for free but they send you discount cards with direct euro discounts and percentage discounts for a whole year. You can use all the ones they give you to use to help any customer that may want to buy gold from you. Dude seriously with this review you should have atleast bought a package to see what was in it. He doesn’t mention the discount cards. Many many people are getting out of debt because of this business. There’s no annual fees from this business, no website fees. Are you kidding me? One time purchases are the only purchases you have to make. Anyone checking out reviews on this company should go find someone who actually WORKS the business. Otherwise look for false and prejudice info that will just build someone’s personal business up. Sorry man I just call it as I see it.

  43. James New

    I left a comment a while ago and just looked at this site again. I did go to your site and I have some questions for you.

    First, why are you trashing another company, that you obviously do not understand because you make false or misleading statements about the company?

    You seem to be fairly informed about network marketing and MLM’s or pyramid schemes as you like to call them.

    Many people tried to inform you that Karatbars is different and not a typical MLM. I know at first glance it looks like all the others but here are the differences: 1. You don’t really sell anything (you will probably dispute that but stay with me) 2. You get a free website (most companies charge a monthly or yearly fee) 3. You do not have to buy their products to earn commissions (Auto-ship) 4. they do have an optional associate program if you want to increase your percentages of commissions. 5. The simplest way to put it is they have a way to change the way you save or invest, eliminating the banking system, stocks, real estate, or savings accounts in us dollars. 6. Basically it is a free gold savings account, where you are encouraged to trade your ever devaluing paper currency for an inflation proof hard asset. 7. The gold is 999.9 pure 24kt LBMA Good Delivery in small affordable and usable amounts. 8. You can just participate in the free gold savings account, or save gold and help others do the same and earn income for your efforts. 9. There are seven ways to earn income with this program, some require no investment at all. 10. If you choose to earn serious income you may for a one time fee you can purchase one of their associate packages allowing you to earn from 5% to 20% on gold exchanges. 11. There is what they call a dual system (looks like the typical binary that I have seen many MLM companies use, and I tried once, and hate.) But after further study it is just a way to pay out commissions and you are given units on the left or right to cycle with 50 on one side and 25 on the other. (you can cycle monthly, weekly, even hourly and commissions are paid on this weekly on a debit Mastercard. ( there are no levels, this goes on indefinitely) I think it is a simple and very lucrative form of compensation.

    These are some of the differences in this company and the typical Network Marketing company.
    You seem to have a problem with the concept of having other people in your organization and making money “off” of them. Well the truth is if you help them make money you get a little, what is wrong with that. You say employees at McDonalds do their work and earn an income from their work, not off others. Well that’s what we have been brainwashed to do. The CEO and board members, even stockholders are making money off of every employee they have, and those employees have an ice cubes chances in Hell of ever making it to CEO. Millions of people have found a better way, in network marketing where they can make as much as they are willing to work for and surpass the person that got the into the business in the first place. The truth is you will never outrun inflation on a liner income.

    I believe the only reason you are running this blog to discredit other companies is to promote the company you are associated with, if it was just a cause against MLM’s etc, you wouldn’t be the company you are with.

    I could put your company down, I found many negative things about it, but you don’t build the tallest building in town by tearing every other building down!



    P.S. Your system would not allow my website???????

    • John Worthy

      James, thanks for stopping by and I really appreciate you comment. I am getting sick and tired of people vehemently denying the fact that Karatbars, despite the fact it change its comensation plan, is a pyramid scheme. Point in case:] Your point 11:

      11. There is what they call a dual system (looks like the typical binary that I have seen many MLM companies use, and I tried once, and hate.) But after further study it is just a way to pay out commissions and you are given units on the left or right to cycle with 50 on one side and 25 on the other. (you can cycle monthly, weekly, even hourly and commissions are paid on this weekly on a debit Mastercard. ( there are no levels, this goes on indefinitely) I think it is a simple and very lucrative form of compensation.

      If this is NOT a pyramid structure, what is?

      • rrp

        Now you have changed your wording – are you putting down pyramid schemes or pyramid structures?? As I mentioned previously what the heck is wrong with a pyramid STRUCTURE??? that’s all it is – a structure for organizing data, people, jobs, whatever. What you DO within that structure is what becomes illegal (pyramid schemes) or not (karatbars, MLMs, other successful corporations, etc) . Please get your facts straight and decide what you want to say before spouting.

  44. David


    If all you do is state “the facts” then get all YOUR Facts Straight and tell the Whole story.!!!
    Also, don’t MISlead by leaving out pertinent Key Facts.!!!

    Your pricing of a karatbar gram is NOT what is the Bottom Line price available on ANY Personal Purchase / Automatic Savings Solution AFFORDABLE strategically to everyone and NOT offered by anyone else other than karatbars, especially when considering the continual erosion of Buying Power noticeable by EVERYONE with EVERY visit to the grocery store, (Albeit they may not understand WHY the grocery prices and packaging sizing are changing so frequently and will only escalate and advance more rapidly with the passage of time; perhaps not much time till there are significant and dramatic changes.) Buying Power diminishing with ALL Fiat Currencies, which eventually end in a Value of $0.00 either through Buying Power Comparisons OR a re-issue of another alternate Fiat Currency which eventually replaces previous Fiat Currencies exchanged at a ratio of value to the former fiat currency issued; the fiat currencies held in the hands of the citizenry is ALWAYS Debased being worth LESS than the “NEW” and “improved” currency.!!!

    Gold has a track record of Thousands of Years of history in retaining Value over an extended time period and the phrase, “Whoever has the gold, makes the rules” is NOT unfounded; just check globally who owns the world’s Gold Supplies, if they hold it and consider it as being worthy of VALUE to POSSESS, then WHY would not EVERYONE at least have some?

    By the end of this year 2015, it is part of a LONG TERM Plan and schedule to be an added benefit through karatbars to have available the gaining of interest on your Gold Savings Account Balance and this implementation is being put into place by no other Company on the Planet; that in and of itself makes karatbars unique.!!!

    With just a VERY SMALL bit of REAL Research into the localized Canada situation for your “unbiased review” you would find the origin of it stems from ONE overzealous individual who improperly utilized the legislated term of “investment” and that is why the unusual environment of the “french quarter” of that specific Province alone and NOT the entirety of Canada has resulted in that action being taken specifically there.

    By the information you do present initially, I find YOUR statement of, “By the life of me I cannot understand what they are talking about.” as being Grossly disingenuous.

    I also find these common “baits and switch”, “review” advertisements for YOUR own preferred product into a “better” opportunity / offering, especially when “the facts” are purported to be presented “factually” yet are instead misleading and Blatantly FALSE as presented, GROSSLY Lacking full details in disclosure and the various options available as, Disingenuous.!!!

  45. Judit Toth

    Hi everyone,

    I really enjoy reading all the comments.
    My question is: who is the guy in the video opening the KB boxes? Is it you John? If so how come you are against KB?

    Also, I think any legal MLM is a good opportunity to change your life. If you’re in an ordinary job, working 8-10-12 hours a day, your earnings are limited because usually you get paid a certain amount per hour. And it won’t change much over time and you definitely won’t get rich. When you apply for a job, they’re recruiting you, similar to MLM, and the people above you, your managers and bosses will of course always earn much more from your hard work. On the other hand, in any MLM business, you have the chance to make more money if you’re willing to put more effort into it. Imagine if you could put 8 hours work into that opportunity… just saying…
    Has anyone seen rich people working in ordinary jobs? Don’t think so.
    The argument about MLM will never end and frankly, I don’t get it. If you like and agree with MLMs then do it and don’t worry what others have to say about it. If you dislike MLMs, don’t get involved but don’t criticise them either, just let them be and move on. This world we live in could be so much better without hurting one another for no reason. We all have the right to decide what we like and what we want to do with our life. To me it’s that simple. You cannot please everybody and why would you think you should?
    Ps: I’m no affiliate, just researching out of curiosity.

    All the best,

    • John Worthy

      Hello Judit, thanks for chiming in. To answer your questions. No, that’s not me opening the KB boxes. As far as MLM is concerned. You are right when you say ‘if you don’t like MLM, don’t get involved’. But that’s not the point. MLM is a concept that cannot work long term for the little distributors, simply by the fact that not everyone is able to build a sustainable down line off 1000 or more participants. ‘Sustainable’ is the keyword. Just do the math and you will understand why. Secondly, why are MLM products, and I mean all of them, so frigging over priced? Because of the compensation structure. If a total of 50% or more is paid out in commission and pool bonuses (or whatever you may call it) this money has to come from somewhere. Regular customers (not participants) will stop buying because of that. Therefor the “monthly orders” and rigorous recruiting to keep the dough flowing. Like Mary Kay said “keep the tub full with the drain open”. Most distributors in MLM make no money or even lose some and end up with inventory they cannot sell. As far as buying gold from KB. Why buy from them if you can buy from other sources 25%-30% cheaper? But you are right. Each it’own, but don’t complain later, if it doesn’t work out.

  46. Molly

    I have yet to join karatbars but i am in the process of joining.
    We always refer people to buy things, but we are not paid for that.
    Karatbars and all other mlm businesses give people an opportunity to get paid for wom marketing.

    John, why are you taking advantage of karatbars to advertise your own business, that tells me Karatbars has made a mark and you are capitalizing on it to get traffic to your newly made system.

    • John Worthy

      Molly, thanks for you comment. I am not taking advantage of Karatbars. To the contrary. I simply point out facts. It’s up to you to decide what you want to do. Join the Karatbar MLM and find out if you can make some money as “Affiliate” with a product that’s way over priced. I am aware of the fact that KB made some significant chances to shake off the scammy appearance. An update to my review is in the works. Just do me the favor and let us all know how you fare in your endeavor with KB. Good luck

      • FWD

        I started KB and in four months my team is 1000 and I have made over 24000euro, contact me and I will show u while u should joining karatbars because you need a change with A company that is a change.

  47. Dieter Marzinger

    I hope you are well?

    Thank you for your posting. I read through it with interest and covered all the comments too. Some of the people had me giggling.

    I empathize with both sides… the MLM Haters and the Karatbars lovers.

    I can only share my perception, my strategy and my reasons for joining:
    I am convinced that it is a good strategy to save in gold in a private company -compared to a bank – or any other investment that has to go back into my bank account.

    I want to be well protected/positioned in the event that I need to get out of South Africa quickly… This may be a unique scenario for South Africans and some South Africans might call me paranoid.

    I cannot afford to buy an ounce of gold, so I need to buy small quantities… I have made peace with the fact that small quantities cost more per gram compared to buying bigger quantities per gram.
    It is also important to me to have small amounts of gold so that trading/bartering becomes easier.

    Becoming a member of Karatbars allows me the unique opportunity to have an international gold account linked to a debit card… The advantages of this alone is reason enough to join, in my perception.

    The taxman will never be able to get hold of my gold.
    In the event of me dying unexpectedly… My gold will be available to my chosen loved ones without the burdensome formality, long waiting period and taxation normally associated to an estate.

    Is it possible to get gold cheaper?
    Probably, but you need to take into account:
    • is it easy to verify your gold?
    • Is it convenient?
    • As a member I get 3% discount on all my gold purchases.

    MLM is a scam.
    Most people are grouping all MLM schemes into a “Ponzi” scheme … and they are justified and highly emotional about it, once burnt, forever shy.
    My counter argument: don’t buy the business opportunity then, buy gold only(free regeneration & no obligations).

    Another “MLM is of the Devil” complaint is: you are being rewarded for marketing Karatbars.
    Is that unusual in any business?
    I see it in working well in many industries… commission is standard practice and buying a franchise is normal.

    The Karatbars MLM advertise that you can make mega bucks, easy in just 12 weeks… here I am disappointed and feel hard done by. I have been following the “PTG System” for some time, followed their advice of paying for clicks through “Ivor solo ads” and in short paid $1400 for 1500 unique clicks, of that I have no gold buyers and no Karatbars business buyers… that is a painful loss. Very expensive lesson: online business is not easy.

    In conclusion:
    If you believe that gold will increase in price… speculate if you can afford to. Karatbars is not the platform for that.
    If you can’t afford to save €50 a month into gold, then inflation already has its grip around your neck.
    If you want small, verified and practical gold that you can accumulate monthly… Karatbars is still my choice.

    I hope my reply to your very thoughtful email was not too long winded.

    • Nicole

      Thank you Dieter. I agree with many of your points and am considering partaking of this opportunity. Your comment is one of a couple sober responses to the article. I am again surprised that Mr. Worthy has not responded. He has not responded to the comments that I find most insightful.

  48. Jennifer

    Thank you so much. Thank goodness your review pops up in the top 10 on a Google search. The folks at Karatbar are really flooding the internet with fake articles and reviews to make their product look legit. I also find it amazing that no one does the MATH any more! LOL….

    • John Worthy

      Hi Jennifer, thanks for your comment. They did make some changes since I reviewed the whole thing. Obviously, they were in deep water and problems not only in Kanada but in other countries as well. The monthly required order, for example, has been eliminated and they started a real affiliate program which does NOT require to purchase gold. However, the compensation plan still pays “affiliates that also are preferred customers” commissions from their 2 down line legs. It remains a pyramid, period. I am working on an update of my review as we speak.

    • FWD

      Jennifer, one request only…if you choose to listen to John and not check the KB concept, good luck plus you minus you KB is here to stay…I dare you keep your eyes and hears closed to the facts and listen to John and check back in 3 years, KB will be a house hold name and you shall be left behind. Just a friendly warning, follow your guts, these guys are just like the banking systems that seem to know every financial solution but when u keep listening to them, you enrich them and become pool at retirement and no question asked…I wish u good luck, get back to me in 3 years if you like or let me coach you on how to become a KB gold millionaire in 6 months….

  49. James New

    I have been involved with several MLM (pyramid scams as you call them) for over forty years. I made a little money but not the big money that is always hyped. I knew people in each one that did make big money, sometime millions. I was drawn to Karatbars because I did see it as being different than any company I have ever seen. You kept saying you could not receive commissions without buying a required amount of gold monthly. I have not seen that in Karatbars and that is one of the things I like about it. Every other company requires you to be on auto-ship of a certain amount of their products. At the end of the month all you may have to show is an empty bottle of vitamins or soap. Buying gold is optional to make money, but you are selling the idea of saving in gold by affordable amounts bought on a regular basis, again completely optional and at your own pace. So it would make sense to do the same. As far as levels are concerned, they are not like traditional MLM companies, It looks like a binary, which I hate, but it is a way of determining commissions, when you get a certain amount of units on one side and a certain amount on the other side, not people, or dollars, but units. Of course the unites are created when money moves. You and anyone else can go over this on their website. Speaking of websites , you get a free one unlike most companies where you have to pay a monthly fee for one. So it does have its differences. I like the product, I like the comp plan, yes you can buy gold for less money, but I don’t know of any other gold company that you can earn commissions , their may be some but I have not run across any. Any type of company like this whether you call it MLM, Network Marketing or an Associate Program requires work,, there are no get rich quick companies , that are legal that I know of. You can please some of the people all of the time and all of the people some of the time, but you can’t please all of the people all of the time. Have a good life, I am.

    • John Worthy

      Hi James, I am aware of the fact that Karatbars obviously made some significant changes to their distribution system. I am in the process of doing the diligent research, and will update my review accordingly. Thanks for your overview, and I appreciate your objective summarization

      • James New

        John, Thanks for your reply. You Obviously know a lot about this type of marketing and more than me about gold. I am still learning. As far as the doom and gloom predictions about the US dollar, I haven’t seen Karatbars or any associates using this to scare people into buying gold, although I believe there are many who do. I have gotten my information via YouTube posts from various economists and Ron Paul etc. They say that the IMF is going to make the Chinese Yuan a reserve currency on October 20, 2015, and that it will devalue our dollar greatly, and gold will increase in value dramatically. They say gold is underpriced now . They also say that it cost $1300 per oz. to get gold out of the ground and is selling for under $1200 per oz. The Chinese look at this as a gift and are buying gold like crazy. Russia is also stockpiling gold. I am not terribly worried , but maybe I should be. I would like to have much more gold than I do now, just in case. What do you think?

        • John Worthy

          James, thanks for stopping by and leaving a comment. Well, if Russia and China would be buying gold ‘like crazy’, the price should go up, shouldn’t it? However, since I wrote this review, gold lost almost 10%, from $1228 an oz to $1105 as of today. Look up the chart of gold prices for the past 30 years and then decide if gold really is that good, or even the best investment there is. Especially if you pay about 25% more at Karatbars than you would buying from


          or any other regular broker.

  50. Louis

    I’m a proud Karatbar affiliate. I researched the hell out this company and after being involved in other network marketing companies over the years, this by far is the best one! I’m speaking as a person on the inside, that took the time to do my own research and not just rely on the opinions of people on the outside looking in. What is there to complain about a company that’s totally free to join? No monthly fees. No website fees. No maintenance fees. Even the marketing packages as a business owner are totally optional. Regarding getting your gold from somewhere else, how can you beat free gold if you work the system? That’s right I said free gold! The people who are complaining about Karatbars probably have never taken the time to work the business and therefore get upset if the don’t see any results. This is the first company I know that has spill over, meaning I have people joining my orgininzation that I didn’t even know or recruited but somehow benefited from them. Karatbars is govern by strict German Business laws and by the World Trade Orginanization . We produce 999.9 Pure 24 Karat Gold Bullion that is accredited by a LBMA refinery. When comparing prices, you must compare apples to apples. How much does 1 gram of gold that’s 999.9 24 karat LBMA compares to 1 gram 999.9 24 karat LBMA of another company? Don’t compare 1 gram price to a ounce somewhere else. One bottle of water will be far more expensive than buying in bulk. That’s how you compare prices. Don’t look at Karatbars gold or any gold as a investment. Look at gold as financial insurance/money in the case of some economic collapse. We are debt free and currently doing business in over 120 countries world wide. We have been audited and investigated by many international attorneys and have came out clean as a whistle. We even been investigated by the famous Jack Baugher who does nothing but investigate companies such as ours. Funny thing is now he’s an affiliate with us now because we are legit! Karatbars is a E Commerce (Not MLM) company like Amazon with a optional affiliate program. Nothing is mandatory and there’s nothing to complain about. People do your own due diligence instead of relying on the opinions of others. In any business, you’re going to have some lazy people who complain. It doesn’t matter how great of an opportunity it is. Someone will always find something to complain about. Below I’ve included the video link to the famous investigator Jack Baugher and also the results of the investigation from the international attorney. I’ve been involved with Karatbars now for a year and I’m having much success! I’m making money and getting free gold! Like I said, how can you beat free? For the sane people of the world, feel free to reach out to me. goldisgodsmoney@gmail.com

    investigative follow up on Karatbars International from our last small post about KaratBars International.

    Markus Ch. Nöring

    Rechtsanwalt / Lawyer

    Schwabstrasse 22

    70197 Stuttgart

    Tel.: 0711 / 24867700

    Fax: 0711 / 248610

    Stuttgart, den 14.04.2014

    39/14 MNO1 N

    Karatbars International GmbH

    Königstrasse 52

    70173 Stuttgart

    Dear Mr. Seiz,

    In response to your request to confirm accuracy and legal compliance within your company:

    At your request, I agreed to a conference with Mr. Fazio on Friday 11th April 2014 where he requested a review of the business model assessment of Karatbars International GmbH.

    After the conference I viewed the office premises at Königstrasse 52, Stuttgart, Germany as well as Delivery Logistics Center located Friedrichstrasse 23b. I had random and unlimited insight into the business documents and especially into banking documents, order- and delivery documents. During my visit of the individual departments, the employees were introduced to me. The personnel answered frankly to all my questions.

    At the location Delivery Logistics Center at Friedrichstrasse, I could see how the orders are processed. The completion of the products and distribution are taken care of at a separate logistics center. I also could view their gold storage vault.

    I could see in detail how the deliveries of gold orders were packed and prepared for the distribution with FedEx. I also had random insight of documents as the marketing plan, contracts with payment companies, FedEx invoices, delivery documents and customs charges.

    After completion of the insightful tour, I elaborately verified the documents in my chancellery. In addition I made an intensive internet-investigation, using different search machines, on Karatbars International GmbH and the trading persons. I also tested their internet presence and tested diverse transactions after login.

    At the summary of achievements I was orientated by the announcement of our Chamber of Industry and Commerce for the region of Stuttgart, concerning the reliability from layperson advertisement and familiar marketing concept.

    Karatbars International GmbH offers 999.9 physical gold bullion in small units to customers.

    New customers either find them via internet or they are referred by affiliate marketing

    The order transaction takes place over their homepage and is easily traceable. The particular purchase of the customer is transparent and is transacted with various payment modalities.

    The orders are taken care of rapidly and the insured shipment of the gold predominately is handled by FedEx directly to the customer. For customers in foreign countries FedEx also takes care of customs clearance.

    With their marketing plan Karatbars offers its affiliates the possibility of an attractive income.

    Legally viewed the marketing is a kind of layman advertising. This kind of direct distribution is generally and legally permitted. Nevertheless every individual case needs to be viewed in an overview to declare if there is any evidence of dishonesty.

    Summarized it is to say, that layman advertising is illegal when they defer from fair trade law as set forth by the World Trade Organization and local laws.

    During the legal examination of your marketing plan there was not any evidence of dishonesty to determine.

    Therefore the overview results in that you conduct a permissibly layman distribution respectively E Commerce Marketing.

    At the internet-investigation I found some comments in the internet blog (Cafe4eck) in which was reported over Herr Seiz. There it is written about a supposed alliance to a company from Herrn Koschine. The statement about Karatbars International GmbH as being the “Rip-off-Imperium”and belonging to Mike Koschine is unsubstantiated and unfounded.

    In this case it is noteworthy that there are no other negative comments concerning Karatbars International GmbH to be found. Here you can be sure that dissatisfied customers would have announced in the meantime.

    The announcement of AMF Quebec is up to my opinion a common warning according to be careful making business with foreign Investment companies. The Warning from 20th March 2014 can be found on the AMF homepage. Further warnings have not been published to this date.

    As a result I come to the conclusion that with Karatbars International GmbH there are no basis information provided or evidence of dishonesty that illegal or unfair business trade.

    The marketing system complies with legal requirements and all business transactions are transparent and traceable.

    Of course I will be available for further inquiry.


    Video link for Jack Baugher interview on Karatbars International below.

    GD Star Rating

    • Nicole

      Interesting that Mr. Worthy didn’t respond to this comment.

    • Dave

      Hi Louis,

      Exactly. People aware of the facts, and not just falling for all of this negative, neurotic trend in our culture, know that Karatbars is a company of very high integrity and also very innovative in my opinion. Cannot find much that is objectionable in the way it is structured, except that I would have liked that they pay higher commissions on sales of gold. But if you take all of the streams of income together, there aren’t that many opportunities with this kind of potential in the first place.

    • Julian Richard Derczynski

      Louis that’s the best comment I’ve read on here. I’m now seriously want to get into this but is it possible to make anything like 5k or more in one month, as long as you put The work into it?

      • John Worthy

        I don’t know where Louis is located but I could not sell a piece of Karatbar’s gold. Of course, I promoted it here in the US to gold buyers and also collectors. Maybe I should have tried to offer it to regular people who just get by with their 9 to 5 jobs.

  51. TJ

    Hi John,

    Thank you for your article. Some of it went over my head. A friend of mine recently invited me to check out the opportunity. For me it seems like you always have to be trying to sell someone to a myriad of people to get the return. And the returns are so inflated. So it basically is another MLM pyramid scheme in gold clothing.

    Thanks for sharing.


    • John Worthy

      Thanks for your comment TJ. I am getting a lot of ‘flak’ from folks vehemently denying the fact that KB is a MLM. To be fair, I am going to take another look and actually sign up as a member. I will let all of you know how that works out.

  52. bonnie

    This is not a MLM. It has no levels, you do not have to purchase anything from Karatbars to earn money or gold. Everythng in Karatbars is optional like the packages. You can also ern a package by hving someone who joins you by registering on your site and purchasing as little as 3 metal gold cards will earn you a bronze package. You can upgrade with your earnings just by paying the difference of the package that you originally purchased and the one you are upgrading to. lso you do not have to qualify for anthing or spend an money to keep earning money. The production of people under you earns you money. The dual system goes down to infinity. I have only enrolled 70 people and from the spillover and people under me I have over 11,000 people in my organization. After purchasing my first package, I have not had to put anything out of my own pocket. MLM’s require you to earn a certain amount of money to go to a certain level and if you don’t, you revert back to a lower level also they require you to have an autoship eery month and purchase a certain amount of product. Karatbars requires you to purchase nothing outside of the one time package. It is an E-Commerce company with an affiliate program. The Vatican has a licensing agreement with Karatbars to produce 100,000 cards with John Paul 2nd likeness on it. If is was a scam, I don’t think they would allow that .I love this company

    • John Worthy

      Bonnie, you say it’s not a MLM, it has no levels. What do you then call “people under me”? Isn’t that a level. You guys are frigging sick. “And the production of people under you earns you money”. Isn’t that typical MLM. “The dual system goes down to infinity”. Isn’t that typical MLM. No matter how you brainwashed folks try to twist it, it is a MLM. Is it a scam? Maybe not under present laws. And spare me the Vatican story. That’s a completely different deal.

      But thanks for your comment anyways

      • Earl Allen Boek

        John: What do you call people under you working at a McDonalds, a MLM? Educate yourself..There are
        many reasons this is not considered an MLM.

        • John Worthy

          Earl Allen, thanks for your comment. People working at McDonalds are called ’employees’ and get paid for their work. You on the other hand, receive pay-off from the purchases of your 2-leg own lines. Even with the monthly required purchase order gone, Karatbar is still uses a pyramid scheme compensation plan.l No matter how you want to twist this, facts remain facts.

  53. bryan stallard

    I think you are all mostly correct. If one can make a profit thru the KB system then more power to you. As anyone can see with a little common sense how the profit is generated. There was a silver coin marketing 20yrs ago or so I got involved with. We hade to buy x number of coins for roughly 3 times the going rate. I still have them and they are now at least worth what I paid for them! Whew! Im sure someone made a killing, but it wasn’t me. I never could recruit enough ‘friends’.
    As for the price of gold I hold another theory. One person mentioned the finite amount that exists . One country may be able to control the price if they could accumulate a majority stake. I think this is probably highly unlikely. If I remember correctly some brothers tried this with the silver market but it did not work out for them. My theory is that due to its finite nature it really is the thing that ALL the worlds fiat paper is based on weather they want it or not. If you add up ALL the current paper money on the planet then divide it by the amount of gold, you will have the value. The more they print, the less its worth. Look at what happened to the german mark. Its one big giant currency bubble. Gold does not fluctuate, the paper fluctuates against it. If you remember the Native Americans view, still holds true today……. white mans paper, makes a very small fire ………bryan

    • John Worthy

      Thanks Bryan for your comment. As far as your assessment of ‘fiat paper’ is concerned, let me ask you just one simple question? Exactly HOW do you pay for your gold? Aren’t they gladly and greedily accept the ‘Dollar-, Euro-, Yen- or any other ‘fiat paper’ bills as payment? Case closed

  54. dee

    Why are you scared to post my reply? Because I debunked your whole article

    • John Worthy

      No Dee, I am not scared to answer comments from folks trying to defend pyramid schemes. I am used to it. Your long tirade ended up in the spam folder for whatever reason. Just found it and will give you my reply.

  55. peter

    A wonderful article…very informative and it always amaze me how so many folks fall for this type of marketing business. It is very difficult to make money in a MLM business….there are only so many friends or relatives you can sell to…who after a while will lose interest. As a consumer, if I can get the same gold from another supplier at the lower cost, why would I ever by from them? Great article!

    • John Worthy

      Peter, sorry for the delay in my response. You are so right, Read the silly comments I got from some of their “AFFILIATES”. Their ship is keeling over.

  56. Dee

    “But look at the down side; gold doesn’t pay interest or dividends and it does not have a fixed value. Like stocks and bonds, gold and the other precious metals are subjected to unforeseeable fluctuations and your investment is always at risk to lose in value.”

    -Gold is just another way to diversify and hedge against whatever might happen with the economy. Should not have to worry about dividends and interest when you are putting a small percentage of your earnings torwards gold. Over the long run gold’s value will out perform interest and dividends anyway. 100% of all paper money has died and the usd is going down the same path. Stocks and bonds are fairly new but gold has withstood the test of time. I disagree with you, gold will never lose value like the volatility of stocks, bonds, currency, etc…
    Better yet, we should not look at the value of gold but the PURCHASING POWER of gold. That has not changed since the beginning of civilization and will continue to do so long after you and I have passed. An ounce of gold would buy you a suit of armour 2 thousands years ago, that same ounce will buy you a business suit today. What will a stock or a hundred dollar bill buy you 2 thousand years ago?? Nada

    “24 ct or 999.9 gold is cleaned of all impurities and NO alloys are being added. It is a very soft metal and, at this purity level of no use for any jewelry application.”

    -Hahaha why on earth would this even be an argument? Nobody in their right mind would melt down their 24kt gold to make jewelry. If you are steering people to melt their gold for jewelry application then maybe you addressing the wrong audience in this post. People do not melt your 24k gold for jewelry application!

    “Karatbars is overpriced” “Karatbars is a MLM” “Unrealistic and Exaggerated Earnings Projections”

    -Let’s be honest, whatever the “SPOT PRICE” of gold is, nobody will ever be able to buy at the spot price. People reading this, please do not base your buying of gold on spot price. All dealers and everybody in between have to make their margins when selling gold. Karatbars is no different, the only difference is they are allowing you to earn money off something people should fundamentally be already doing.
    Nobody is selling you lotions or hair products, you are buying the most valued asset on earth so there should be no beefs about wanting your friends and family to buy it for themselves as well. If you can make some money off it, why not?

    -Basically, you will get out what you put in. Too many lazy people want the quick fix and when it does not happen they complain about the company. Yes if you do everything right in the fastest possible time, you will get the returns. Put in the work and you will see results, period point blank.

    “Authorities in “Kanada” Issued A SCAM Alert”

    -Reason for this? Nobody knows maybe it is political maybe you can share the reason? That is like 1% of the countries who use Karatbars and it was not even the whole country, just Quebec. How many of Mcdonald’s products are banned in certain areas of the world, people are still eating McDonald’s. Bad reference? Maybe but you get the point. Karatbars belongs to the LBMA and WTO which have very strict rules to join and run business, the Quebec reference has no real merit. Where the hell is Quebec anyway??

    At the end of the day, we should all be buying gold to hedge against inflation, the government, and everything wrong with the world economy. Yes you can take gold anywhere and it has purchasing power, try taking a USD to Italy or China and see how they laugh in your face. If you can buy gold to secure your children’s future, you should share the knowledge with your friends and family becuase it is important, and if you can get paid for it at the same time why not??

    Isn’t it funny how the writer of this post bashes gold and the business model then coincidentally posts his own link?? hahhaha

    • John Worthy

      Ok Dee, thanks for your interesting comment. Here is my response, belated due to the fact that it ended up in the spam folder, as I already told you.

      You assume and state as a fact that gold will out perform interest and dividends, paper money will die, and gold will never lose value like stocks and bonds.

      First off, gold does not draw interest, while savings do. Secondly, gold loses and gains value just like stocks and bonds do. In 1972 I bought 36 Kruger Rands for $278 each ($10,000 + $360 broker fee). In February of 1980 the spot price reached $2,000 per oz. Over the next 12 months gold lost almost 40% and I sold at roughly $$1,300 per coin.

      Over the next 20 years, gold devalued to $355 per oz (March 2001). It took 10 years to go back up to $1,700 and is in decline ever since. Today, July 6, 2015 gold is at $1,180.

      You see, my friend, the value of gold fluctuates just like the Dow Jones, Nasdaq or any of the other indices. Your argument about PURCHASING POWER sucks, because if a business suit cost $1,000 and an ounce of gold is valued at $300, ONE ounce of gold would not buy me that suit.

      Hahaha you say to my simple explanation why Karatbars claim to have the finest and cleanest gold is bogus. 999.9 gold is the frigging cleanest gold you can get, no matter where you buy it from. And I was not saying to use it for jewelry.

      I guess you have not learned to comprehend what you read. Hahahaha.

      Now lets get to the price. There are 31.1 grams in an oz of gold. At today’s price; One gram would cost $38 + 5.5% small bullion + 5.5% broker fee, which includes certification.

      $42 will buy me ONE gram. Why in the heck would I buy gold from Karatbars for $63 bucks a gram? Because it comes in form of a credit card? Gimme a break.

      Which brings me to the “Business Opportunity”. I see that Karatbars calls its pyramid inhabitants AFFILIATES now and cut the monthly order requirement. They now call it a ‘voluntary 3-months’ plan. I call this the biggest BS I have heard in a long time. If you do not buy your montly quota, you are loosing your active status, or whatever they call that now, and don’t qualify for the bonus pool that lets you make money from recruiting people.

      I wonder why that happened. I am kidding, of course, I know why; because Karatbars is a scam. Designed as such and still operating as such, trying to appear legit. The SCAM ALERT in Kanada was not because of political reasons but because of the pyramid scheme.

      Having said that, I agree that many other companies, particularly in the dieting and beauty industry using MLM to peddle their products. They all are pyramid schemes, selling tangible products. Gold is a tangible product, and many people that can afford to invest in precious metals do so.

      You see Dee, I have more than one website, and with one of them I promote coins (gold and silver) and I asked some of my customers if they are interested in Karatbars’ offer. They laughed me out of town.

      I understand that you, as an ‘affiliate’ try to defend what you got yourself into. I probably would do the same. Would I use the same arguments? Maybe not. The Doomsday theme is old and sucks. The world still loves the Dollar; Italy does, and so does China. You say you have to have gold to hedge against inflation, the ‘oh so bad’ government and the world economy (almost crushed by Mr. Bush).

      And by the way, Dee; don’t tell people that buying gold from reputable brokers requires your Social Security Number. That’s a lie. I did the research for you, in case you really don’t know (although I am sure you are very aware of these facts).

      Read this article and when there are some words in it you don’t understand, get a Thesaurus; if you don’t know what that is, get a dictionary and work your way up.


      Last but not least. Dee, I did not bash gold and investing in gold. I bash Karatbars because it is a pyramid scheme where maybe a handful of folks will make lots of money, whereas the ‘affiliates’ will make very little or nothing, as is usual in MLM/Pyramid marketing.

  57. Bobby Buck

    Everything is a pyramid scheme when you look it at, just like with any regular job, you have to pick which one is best for you. A regular job is even more of one because someone gets paid off of you and you get paid off of you but you get paid off of nobody else. So two percentages comes off your cut of money working a regular job anyways. Plus you don’t get to write off any taxes as much as so called owning or working your own On Line Business. So who’s the best of the evils of the ones who create avenues to make and for others to make an extra income? Just My Thoughts!!! (B.B.)

    • John Worthy

      Hi Bobby, thanks for your comment. However, what you are saying does not make any sense. First off, not everything is a pyramid scheme, particularly regular jobs. Whatever work you do, you provide a service and get paid for it. End of story, or do you have to recruit other workers in order to get paid?
      And the tax write off is really off topic, now is it not?

      You think it’s not evil and just right if scammers enrich themselves by ‘creating avenues’ which lead to people losing their hard earned money.

      • Doubtfull

        Another puzzling thing. If paper money is supposed to be “worthless” why is Karatbars exchanging all their valuable gold for paper money?
        Also , as you can’t simply walk into a store and exchange gold bullion for services/merchandise , it has to be converted into some form of legal tender. And guess what..there’s goes another 10% or so of it’s value.
        Gold futures would make a LOT more sense except you are still going to lose out to a broker somewhere along the line,

        • John Worthy

          I believe gold has some value for long term investment and folks with money do hold gold for different reasons. However, the idea that people living from paycheck to paycheck can get GOLD by recruiting other people into this scheme is border line scam.

        • Lamont Hoffmeester

          Good Day Mr Worthy

          My First Question to you is. firstly, Have joined Karatbars International and are talking from experience? It Is one thing to evaluate a cake, but if you have not tasted the cake your opinion on it is invalid. Secondly, Karatbars International gold spot price is different to JM Bullions because of the packaging of the gold, all certification of the gold is placed on the gold gram card where as with JM Bullion you have to apply for certification papers. Thirdly, Karatbars is recognised by the World Bank. If it was a pyramid scheme, it would be illegal in our country. Do yourself a favour and go type in AMWAY or VEMMA on google, AMWAY scam and VEMMA scam will pop up, however these are fully established companies that have been operating for years, these companies are not schemes and have legitimate products. God does not put a premium on ignorance. Get your facts straight mate.

        • John Worthy

          Meneer Hoffmeester, thank you for your comment. I believe that my opinion is valid. Let me tell you why.
          The disclaimer on your “Opportunity” page tells it all in typical pyramid scheme misleading ways:

          “Disclaimer: Karatbars International is an e-commerce company, not a network marketing program. This presentation has been created by the independent affiliates within the program to show the earning potential of the wealth building plan utilizing Karatbars gold as its product.

          The projections shown here are not a guarantee of income but rather an example of the earning potential available based on your individual work efforts”.

          First off, Karatbars is a basic MLM company, hence a pyramid scheme. You may call it what you want, the fact remains that money is made NOT by selling a product, but by recruiting people into the organization. You call Karatbar members Affiliates, which is misleading. In affiliate marketing, I should be able to sell your product and receive a commission for each sale WITHOUT having to buy and use the product myself.

          You are correct in your assessment of AMWAY & VEMMA (and all other similar companies which I include in my assessment due to my IGNORANCE, as you call it), they are also pyramid schemes with revolving doors for the passing through of “independent contractors”.

          As far as legality is concerned. Unfortunately, the definition of what is and what is not a legal pyramid scheme is insufficient and unsatisfactory.

          I agree that investing in gold may have advantages, but I disagree that buying gold from Karatbars is a good investment. It is overpriced, as you say yourself, not because of “packaging and certification”, but due to the multi-level commission structure typical for pyramid schemes.

          I do have my facts straight, Meneer Hoffmeester, and my manners forbid me to call you ‘mate’ after insulting you by calling you a liar. Which you are.

  58. J. Nicole

    Walmart, Kmart, Walgreens, Target etc. are scams as well using your analogy! Like Rock mentioned above, I have purchased items from Walmart that were cheaper at Kmart, and I do not see you labeling any of these organizations as a scam. You know exactly what Rick is referring to when he explains that the gold KB sells is used in the process of making gold, but this forum is what makes your day, so you just want me or him to explain it again. Rick also said that he was not successful, but that do mean that everyone was. When the system as a whole is concerned, money do not flow downward, and this is only true if you see the government at the bottom. It’s funny how you chose to ignore povery, but you are such a humanitarian for only the people who are interested in KB. You have a personal vendetta! Just let it go.

    • John Worthy

      Nicole, thanks for your comment. Let me assure you that I do not have a personal vendetta. I just call it as I see it. Why do you think Karatbar made some changes to their “affiliate system’? You know, if something looks like a pyramid, it is a pyramid. The so called affiliates still building their down line with 2 legs, and receiving a kickback from their sales.

  59. Reynold Stewart

    Thanks John. Your article was informative and practical. My enthusiastic wife co-worker is consistently encouraging her to join Karat bars. However, the earning potential appears to be exaggerated. Conversely the gold quantity and the stated price is questionable. I am excited to share your idea of purchasing gold from JM bullion or another reputable company with her. Seeing that saving up for the doom times, is her main concern.Once again thank you. Great article and the arguments that ensued, actually added value to your article.

    • John Worthy

      Hello Reynold, thanks for stopping by. That’s my point exactly…..you can buy small weight bullion gold from JM or other traders. The price is just about 5% over spot and a good investment without the hassle of having to recruit other folks.

      • Dwayne

        Hi, just thought I would add a few short words.

        I would just like to add a couple points about comparing spot prices of Karatbars Gold and other gold issuers.

        Karatbars is a PRIVATE issuer of Gold Bullion. This is extremely significant, let me explain why.

        When you purchase a gram from companies like JM Bullion or Kitco etc… they require a Social Insurance Number (in Canada) or Social Security Number (in the US). The reason for this is if ever, oh, let’s say China comes calling and wants the US to settle their debt, the US will have to give them gold. That’s how countries settle debt with each other. But the FED does have anywhere near the amount of gold it would need to cover the debt to China. So the government would start pulling up who has gold, confiscate it, give them market value at the time they take it back, AND since it was government issued, you would be required to pay the tax on the price differential.

        But let’s not assume the world is going to end. In 10 years, you decide to sell your JM Bullion or Kitco gold. Let’s assume it doubled in value. You will be paying tax on that increase when you sell it back.

        Everything I just said above does NOT apply to Karatbars. There is no social insurance number taken when you purchase it, so the government doesn’t know you have it. And if it increases in value over time, when you sell it, you keep 100% of what you sell it for.

        Also, if you were to refer me to JMBullion – what would they pay you for that referral? The answer is nothing. But if you refer me to Karatbars, you earn a commission.

        When you combine the tax advantages, the inability for government to seize it, and the fact that commissions need to be paid, the higher price becomes a moot point. Especially considering that the income stream from Karatbars, which didn’t exist prior becoming involved in the company, is paying for the gold. Basically the gold is free.

        What’s better than free gold?

        Cheers!! Have a great day!!

        • John Worthy

          Dwayne, sorry to disappoint you, but your Social Security # requirement for buying gold is total BS. Here is something that YOU should have read a long time ago.

          Your fear mongering about Government is going to confiscate your gold is even greater baloney. Just google it and get the correct information. Yes, they did in 1933, but it would not work nowadays for several reasons.

          And I tried referring Karatbars to customers. Guess what? I got laughed at like I am an idiot. Sorry, but your arguments suck

      • Dylan Robertson

        Uhmmm…. what is wrong with recruiting people?! If I make more money by recruiting people then so be it! Don’t tell me not to!

        • John Worthy

          Dylan, thanks for chiming in. Nothing wrong with recruiting, BUT making money with recruiting ONLY like in pyramid schemes, is a scam. The pretense of selling a product to shake the being a pyramid fact, does not make it legitimate. That’s all.

  60. Doug

    I did enjoy reading this article but what was not mentioned was you do not have to become a member you can just purchase the gold from them. The gram within the credit card setting is nice you can hold 999.9 gold in your hand physical gold that is LBMA certified true gold that you do not have to worry about damaging the gold due to it purity.
    There idea is to make gold available to someone that can’t afford to buy it in a larger quantity So I pay a bit more but the true value of gold is piece of mind. Gold is M0 all other currency are valued against it gold currently is not at what it true worth is but China’s gold market my soon change that fact. The London fix has closed gold’s true worth is believed to be in the 18,000 to 20,000 an ounce with that being said when gold is returned to it’s true worth(value) could you afford to purchase it then if you can’t now?
    currently Karatbars is providing a vehicle for you to buy and hold physical gold that you can keep in your possession no holding fees.

    • admin

      Hi Doug, appreciate your input. What you say is true, you can buy over priced small weight 999 gold from Karatbar without joining their MLM scheme. But why buy from them if you can buy as small as 2 gram bullion from regular traders. There is a 5% mark-up, but not a 20% or more as you would see with KB

  61. Paul

    John, I think you just misinterpreted what Rick was saying. He said jewelers use 999 gold and then mix it with other metals to create the jewelry. They do so so they know the exact quantity of gold they are putting into a piece to create 14K 18K etc. This way they also know there are no ‘contaminant’ trace metals in what they are making.

    As for Karatbar pricing, I am really on the fence with this. I look at it this way; I bought my girlfriend some perfume from our local drugstore and paid a little over $70. for it. Out of curiousity I did an internet search and found I could have bought it online for under $40. Does that mean my drugstore is a ‘scheme’ as you call it? Same goes for almost everything we buy. Look long enough and we can find it cheaper. Sometimes way, way cheaper. As for Karatbars I am on the fence with it as came here just doing dif research to see what is said good and bad about it. I still have no clue what the stuff is in their packages to go with 1 gram of gold!!! But I will figure that out. The internet is great for putting puzzles together.

    Now one last thing. The words pyramid and scam always have me shaking my head. If all of them are scams then we all need to revolt because our entire government system is built that way. And you guessed it, we the dorky taxpayers are on the very bottom of that pyramid and we support everyone up the ladder. Maybe the IRS should be abolished for running a Ponzi scheme….we can dream can’t we lol.

    • John Worthy

      Hi Paul, thanks for chiming in. First off, 999 bullion gold is too soft to us for jewelry, and other metals are added to strengthen gold. You tell the story of buying something you could have found for less money some other place. Now let me ask you this. Did the store you bought the item try to recruit you to sell the product to other people, which then would do the same? Would you get a commission from their sales as well as from the sales from their recruits? Would you get bonuses and other perks based on the little pyramid you built within the big pyramid? Guess not.
      As far as your analogy of pyramids is concerned. Yes, every company and even the government looks like a pyramid. The difference, however, is the flow of money. It flows downward, whereas in pyramid schemes it flows upwards. There are legal MLM schemes selling tangible products but there are also MLM pyramid selling crap nobody would buy otherwise, or no products at all…….just a dream. The largest of these obviously Empower Network.

      As far as Karatbars is concerned. Yes, it is a scam. It is not even a good investment, as they claim, and you only can recoup your dough by recruiting other folks.

        • John Worthy

          Stan, thanks for your intelligent comment. But no worry, I am used to getting insulted by brainwashed MLM members for telling the truth about pyramid schemes. Especially those that are borderline, or even outright scams.

  62. wealthbythegram

    There are many scams out there and people are right to be skeptical initially, but it’s unfortunate that you write such a negative review of Karatbars without knowing all the facts.

    I encourage EVERYONE who’s interested in Karatbars, or any other company for that matter, to spend time researching and doing some due diligence. There is far more good information to be found than bad, and usually the bad info comes from people who are not involved and yet feel informed enough to give you their opinion. Naysayers are everywhere and it’s easy to find bad info on the net about anything or anyone.

    Do yourself a favor and give more weight to the information you receive from Karatbars affiliates, who REALLY know how it works and can verify the legitimacy of the company. There is no scam here.

    • John Worthy

      Thanks for chiming in. Believe me, i did my fair share of reviewing Karatbar. And I give more weight to information from unbiased people, or folks that got burnty by Karatbar, before I give ANY credence to what affiliates, blind to real facts, have to say in trying to defend an obvious not so good opportunity to ‘save up for when the sh*t hits the fan’. If you really know how it works, you should know that it is pure BS. I am not calling it a scam, but a scheme that will make mofor just a few folks. If building a nest egg for doomsday is the only reason to buy small amounts of gold at a time, why don’t you just buy it from a trader, whenever you have the dough to spare? It’s cheaper as you know, and you don’t have to worry about finding dummies to recruit into something that will not make you any money at all.

      • Katie

        Hi John;

        You did however just call it a scam in an above comment… “As far as Karatbars is concerned. Yes, it is a scam. …” Not that many of your other comments aren’t valid, it does appear that things you’re stating has a lot of emotion behind it. I don’t believe it’s a fair review (for any product, any business, any opportunity) to give a fair review when there is emotion behind it. A review is simply an individual’s opinion, in most cases.

        Pyramid (from Greek terms): is a structure whose outer surfaces are triangular and converge to a single point at the top, making the shape roughly a pyramid in the geometric sense. Scheme: a plan, design or program of action to be followed; project. any system of correlated things, parts, etc. Pyramid Scheme is the correct term you’ve been using, but I do think most people just associate it negatively now, which is unfair to many companies.

        Thanks! Take care.

        • John Worthy

          Hi Katie, thanks for your comment. There is a big difference in legit MLM and Pyramid Scheme, and often times it is difficult to draw a straight line. Every MLM that requires you to build a down line of participants AND subscribe to purchase products is a pyramid scheme. Companies like Avon, Mary Kay and many others use MLM to market their products and I see nothing wrong with it IF the products are tangible goods. Meaning that people actually want to buy them AND use them. Many MLM however, are not selling tangible goods, but just a dream to get rich by recruiting other people. The largest of the was Empower Network that left thousands of folks losing their hard earned money. Yes, I may be emotional, because I fell for scams in the past that did cost me dearly.

      • Dave

        John Worthy,
        Sorry, I don’t think you did your proper due diligence at all. You obviously do not understand how the gold is priced, that is made clear by the fact that first – you have tried to compare the cost of one gram as sold by the ounce with the cost of one gram when sold by the gram. This is a wrong comparison, it is just like comparing the price of one bottle of water sold as a unit, with the price of a whole box of water – and then claiming that the price per unit is too expensive. Anything sold as a unit will always be more expensive than when bought in bulk, and buying in larger quantities gives you a volume discount.

        That was your first error. The next error is that you completely disregarded the fact that you have to compare gold which is of the same asset class. With Karatbars – we are talking about 24 karat, LBMA certified gold, which also comes with multiple security features (kinebar) that makes selling it at a later time much more quick, cheap, and efficient. Have you compared the price of 1 gram of Karatbars to that of 1 gram of PAMP Suisse, Credit Suisse, UBS, or Argo Hereus ? If you do – don’t be surprised at the amazing coincidence that they are all priced in the same range. And no, its not because they are all scams. It is because you are comparing the same asset class with another.

        Karatbars in fact, compared to all of those other companies, has far greater advantages. Besides earning commissions from the sales of gold, you also have three percent discount off the price of the gold for a year, free storage which saves ALOT of money on shipping because you can purchase several grams to set them aside in storage and then have them delivered with the same shipping fee as 1 gram.

        A lot of sensitive, subtle, nuanced information is involved here – which you were happy to speak about without knowing all of the facts. This is very misleading to anybody reading your blog who wants to be well informed, and it is a common mistake ive seen with several people who have written similar blog posts, and have the same sort of misunderstandings as yourself.

  63. rick


    I have to disagree with the first part of your article when it comes to Gold. I’ve done extensive research myself. Starting out, you mention Gold to the extent it sounds as if you have not done much research.

    At least, in as far as its true worth. Gold, based on world statistics will never lose value as the supply is limited. Which ensures a strong, steady upward increase throughout time. Sure, it is possibly they could find some on mars. But there is only so much of it on the globe! And as long as that is truth, Gold will always remain high in value.

    And also,compared to our cash currency, it far exceeds the value there, and has for over 100 years.

    As with paper money there is now very little value as inflation has shrunk it to a portion of its original value. If you watch some of the information from Karatbars they show us just how little value paper money has now compared to when it began, and Gold now.

    Our dollar bill has shrunk Big Time since the 1900’s. Gold however, has remained valuable, and even in depression times does much better than paper money. That it increases over time has made Gold one of the highest favored commodities in the world.

    John, it is funny how you compare the .999 Gold to making Jewelry. You say it is no good for making jewelry? Not that we would be using our investment Gold for such, but if so, the 999 Gold is perfect, and it is exactly what they use in the process of making jewelry.

    They add other metals to it depending on how strong they want the finished product. They add the other metals to it in order to guage the strength and quality as a measurable amount like in the Gold becoming 14k, 18k or even 24k jewelery. Depending what we desire.

    KaratBars International is an MLM program like you say…

    Now I have to admit, being a member of Karatbars myself, I’ve had time to research the program and have paid hundreds to get started with it. I know some things that others do not. Some good some bad.

    Karatbars is mostly as you make it out to be, or as you have said in your article. The program is MLM. Not something you want to be a part of, regardless.

    Making money is difficult as you mention. But there are many factors that cause this. One is that the dollar has shrunk so badly that many can no longer even afford to buy gold as an investment! And due to the majority not having enough money, they will not join a program where they have to pay more for it than they can afford.

    That also means if you won’t do it yourself,(spend money on Gold)like me, how would you expect others to want to join this program? First thing people say is it is marked up too high! And yes,KB then says you make up for that by getting members, so it reduces your cost. That is if you get any members!

    Getting someone to buy it and join the program is like selling them on a fallout shelter at peace time. Very hard to do as I can atest to that in trying the program myself. Anyone want a gram of Gold? Cheap?

    I have yet to pick up a single member underneath me in over a year of trying different modes of advertising.

    And again, I myself can get the Gold at a discounted price compared to new members, but it is still over priced at that point, like you said, and probably due to their own overhead costs in promotional adverts and the percentages they earn. Their Gold is much higher than going to ebay and buying a .999 pure ounce. Which is the same purity as KB sells. They just make it sound like you can trust them, and may have difficulty trusting someone else when buying their Gold.

    So thanks for bringing this KB program up. I enjoyed reading and commenting on it.

    I would suggest everyone stay away from KB, unless you have more money than you know what to do with, and you want to invest in something. I would definitly invest in Gold if I could afford it!

    Gold is still the greatest commodity to invest in, in the world. And, probably will remain as such.

    If you have read this far, check out John’s recommended program Wealthy Affiliate. It is a real way learn and earn money online, and there you have no risks to contend with. You can build your own business and exchange your service or products for real cash! Or even do what I do, Affiliate Marketing.

    Rick Bell

    • John Worthy

      Thanks for your comment Rick. In regards to the ‘jewelry’ quality of 999 gold, I disagree with your response. Gold in its purest form, what we would call 999, is indeed too soft for the use in wearable jewelry. Here in the US, most jewelry is made of 10 or 14 karat gold. Very seldom will you find 18 or even 24 karat rings with a diamond setting. That beside, Karatbar is a MLM, as you know, that sells overpriced small quantity gold bars. You admit that your efforts to recruit new partners failed so far. May it be that pyramid schemes lose their attraction and the public is more aware of the negative sides of them? I just call it as I see it; always try to be unbiased. But MLMs are mostly borderline scams, were only the very few on top make the money.

      • Cris

        What about JM Buillion not directly saying their gold can not be confiscated if there’s a economic crisis? Please explain because at this point I’m not sure to even purchase their gold either….

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