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Warning against Karatbars International

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Warning

Following the example of Canadian supervisor the Autorité des marchés financiers (AMF), the Netherlands Authority for the Financial Markets (AFM) has warned consumers against Karatbars International. This German enterprise offers investments in gold via the internet, during conferences and via social media. Karatbars presumably also targets Dutch consumers and does not hold an AFM licence.

According to the AMF, Karatbars encourages consumers to recruit two other investors who in turn are encouraged to recruit new investors. This is known as multi-level marketing. Karatbars promises participants major earnings, inter alia generated by proceeds from investments made by new investors.

The gold market is complex

The Canadian supervisor argues that investors should be careful with investments via Karatbars' programme. It warns that the gold market in which Karatbars operates is very complex and not suitable for every investor.

The AFM previously warned consumers before about the risks of purchasing precious metals via web shops. Internet purchases entail special risks.

The AFM is committed to promoting fair and transparent financial markets.

As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.

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