Streaming issues? Report here
Refilwe Moloto 2019 1500 BW
Breakfast with Refilwe Moloto
06:00 - 09:00
volume_up
volume_mute

Up Next: Today with Kieno Kammies
See full line-up
Breakfast with Refilwe Moloto
06:00 - 09:00
Home
arrow_forward
Business
arrow_forward
Opinion
arrow_forward
Lifestyle

Karatbars – is it a scam? The case for and against…

15 November 2019 10:06 AM
Tags:
Warren Ingram
Gold
The Money Show
Bruce Whitfield
Scam
Pyramid scheme
Personal finance
Galileo Capital
investing
Financial Sector Conduct Authority
FSCA
Karatbars International
Karatbars
Thomas Valet
Tony De Gouveia
Bruce Whitfield interviews senior Karatbars representatives, a financial advisor and someone who was invited to its conference.

Is Karatbars a scam?

The Financial Sector Conduct Authority – the financial services watchdog – says Karatbars International GmbH is not an authorised financial advisor or provider of intermediary services.

Regulators in several countries have warned against Karatbars.

The Bank of Namibia officially declared it a pyramid scheme while in Germany – the home of Karatbars - the banking watchdog issued a cease-and-desist order against it.

Karatbars is under investigation in the US and several reputable cryptocurrency news sites have issued warnings about it to the public.

The multi-level marketing company offers online purchases of cards and notes with tiny “cryptonyzed” gold bars embedded in them to “affiliates” who earn a commission when they enlist other affiliates.

Image credit: https://karatbars-gold.net/harald_seiz

The Money Show’s Bruce Whitfield interviewed personal finance expert Warren Ingram (Executive Director at Galileo Capital).

They’re talking to desperate people… it’s very vague… criminals will take advantage of this… Exercise extreme caution. There are so many ways to buy gold through established channels…

Warren Ingram, Personal Financial Advisor - Galileo Capital

He then spoke to Thomas Valet, Communication Manager at Karatbars International (apologies, the audio quality is poor).

We intend to make gold affordable in small denominations…

Thomas Valet, Communication Manager - Karatbars International

Whitfield also spoke to a listener, Susan, who attended a Karatbars conference in Cape Town.

I was invited to join the conference… it was quite a strange affair… very theatrical… it was sort of a frenzy… pumping music… hyping people up… Then, a grand entrance – everybody started chanting – then Harald Seiz, the CEO, stepped in… it was like the Messiah walking into the room. There was a lot of emotional fervour… it was like a Rockstar on stage…

Susan, Karatbars conference attendee

The whole premise is based on belief and trust. They don’t offer any evidence. It’s like a personality cult…

Susan, Karatbars conference attendee

He [Karatbars CEO Harald Seiz] told the audience that a lot of people will tell them it’s a pyramid scheme. He then coached the audience on how to deflect those allegations…

Susan, Karatbars conference attendee

Finally, Whitfield interviewed Tony De Gouveia, one of the main South African affiliates at Karatbars International.

No, it’s not [a pyramid scheme] … Karatbars won a court case in Canada…

Tony De Gouveia, South African affiliate - Karatbars International

I get paid because people in the network buys the product… I would guess more than 10 000 people in South Africa are in Karatbars, buying gold.

Tony De Gouveia, South African affiliate - Karatbars International

Our legal firm in South Africa… have contacted the FSCA… giving the correct information about Karatbars…

Tony De Gouveia, South African affiliate - Karatbars International

For more detail, listen to the interviews in the audio below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : Karatbars – is it a scam? The case for and against…


15 November 2019 10:06 AM
Tags:
Warren Ingram
Gold
The Money Show
Bruce Whitfield
Scam
Pyramid scheme
Personal finance
Galileo Capital
investing
Financial Sector Conduct Authority
FSCA
Karatbars International
Karatbars
Thomas Valet
Tony De Gouveia

More from MyMoney Online

help-drowningjpg

Drowning in debt? Two legal ways of clawing your way out of bondage…

18 February 2020 2:35 PM

South Africans are getting deeper into debt. Ismail Lagardien interviews Sylvia Walker, a financial planner.

Share this:
Read More arrow_forward

broken-heart-broke-money-coins-finances-love-relationship-divorce-break-up-123rf

How much should couples know about each others' money?

14 February 2020 2:35 PM

For most people, it's not easy to talk about money with a partner. Financial planner Sylvia Walker has advice.

Share this:
Read More arrow_forward

household-bills-debt-expenses-money-finances-black-young-couple-worried-123rf

South Africa’s middleclass is drowning in debt and getting poorer and poorer

10 February 2020 1:49 PM

The weak economy is "pushing people back into poverty from the middleclass", according to Debt Rescue CEO Neil Roets.

Share this:
Read More arrow_forward

house-mortgage-bond-home-rent-family-123rf

Get a risk-free, tax-free return of 10% on a fully accessible investment

10 February 2020 12:53 PM

Personal finance expert Paul Theron (CFP) discusses saving in an “access bond” and why it’s a near no-brainer.

Share this:
Read More arrow_forward

group-of-seven-g7-countries-economy-summit-123rf

Can’t or won’t emigrate? Stay in SA while your money makes money abroad

10 February 2020 10:11 AM

Refilwe Moloto and Pieter Koekemoer (Head of Personal Investments at Coronation Fund Managers) discuss offshore investing.

Share this:
Read More arrow_forward

doctorjpg

Your expensive medical aid is woefully inadequate, but cheap gap cover helps

21 January 2020 1:16 PM

Despite the huge expense, few medical aids cover members in full when they're hospitalised, leaving them with massive shortfalls.

Share this:
Read More arrow_forward

Woman piggy bank

Budgeting for people who can’t or won’t ever budget

13 January 2020 2:38 PM

Not the budgeting type? Certified Financial Planner Paul Roelofse explains the “30/30/40” budgeting without budgeting hack.

Share this:
Read More arrow_forward

money

How to draw up a 'personal balance sheet' to determine your 'net worth'

6 January 2020 2:23 PM

How much are you worth? Paul Roelofse, a Certified Financial Planner, gives a template for you to copy and adjust.

Share this:
Read More arrow_forward

mtn-sim-reusablejpg

Why Anchor Capital is buying MTN, Sibanye and Transaction Capital

9 December 2019 7:34 PM

The Money Show’s Bruce Whitfield asks Peter Armitage (CEO at Anchor Capital) for his stock picks of the week.

Share this:
Read More arrow_forward

Airport departure

Considering emigration? Financial planner discusses the affordability of leaving

6 December 2019 11:04 AM

Can you afford to leave South Africa? Certified Financial Planner (CFP) Barry O'Mahony on what to consider before deciding.

Share this:
Read More arrow_forward

More from Personal Finance with Warren Ingram

stock market crash.jpg

Is the US stock market heading for a crash like the DotCom bubble in 2000?

20 February 2020 7:57 PM

The US market has a big impact on all markets and when they get flu, South Africa sneezes.

Share this:
Read More arrow_forward

stress-black-man-papers-laptop-work-tax-fees-money-finance-woes-businessjpg123rf

This is the last month you can do any tax planning for the year

6 February 2020 8:23 PM

We ask financial planner Warren Ingram to help get our tax ducks in a row.

Share this:
Read More arrow_forward

invest.JPG

This is how you should invest your money for the next decade

23 January 2020 7:57 PM

Personal Finance - Tips on how to invest your money.

Share this:
Read More arrow_forward

Cash money rands

Need some help with your 2020 personal finance goals?

9 January 2020 7:59 PM

Do you need some help to set your financial goals this year?

Share this:
Read More arrow_forward

debt-managementjpeg

How to know if your finances are on track after a lousy year

12 December 2019 8:05 PM

How do you measure if you are financially on track after a lousy year?

Share this:
Read More arrow_forward

Airport departure

Considering emigration? Financial planner discusses the affordability of leaving

6 December 2019 11:04 AM

Can you afford to leave South Africa? Certified Financial Planner (CFP) Barry O'Mahony on what to consider before deciding.

Share this:
Read More arrow_forward

Mother teaches young daughter saving 123rfbusiness 123rfpersonalfinance 123rf

Schools don’t teach personal finance - how to raise a future millionaire

18 November 2019 8:38 AM

Personal finance expert Warren Ingram (Galileo Capital) on how to raise financially free children.

Share this:
Read More arrow_forward

No yes maybe

Why you should ignore (conventional) personal finance advice before retirement

1 November 2019 3:09 PM

Most personal finance advisors suggest reducing “risk” a year or two before retirement. Ignore them, reckons Warren Ingram.

Share this:
Read More arrow_forward

freedom breaking free

Formula for calculating how much you need to never have to earn a salary again

25 October 2019 2:13 PM

Personal finance expert Warren Ingram on how to determine your “financial freedom number”. There's a simple formula.

Share this:
Read More arrow_forward

Divorce

Considering divorce? How to avoid getting poorer in the process

17 October 2019 2:43 PM

Personal finance expert Warren Ingram warns that divorce almost always destroys wealth. Here’s how to not lose your money.

Share this:
Read More arrow_forward