7k Metals Review | Scam or Legitimate MLM Company?
We know that selecting a business to invest one’s money is a decision of the utmost significance; the good news for you is that we have spent a significant amount of time and effort conducting all the research you’ll ever need.
7k Metals is one of those firms that makes a bold claim to provide you with a money-making opportunity as well as an investment strategy to begin constructing your future.
If starting your own business and earning money were as simple as 7k Metals makes it seem, then a lot of people would be doing it. In the following paragraphs, we take a look at 7K Metals and explain what it is, what its compensation plan is, and our impressions of the company.
Here is a link (below) to the 7K Metals Google Business page if you would like to read some of their reviews.
Here is a link in case you would like to leave a review of 7K Metals yourself.
Let’s provide a few examples from 7K Metals Google My Business page
Now we will move to the “Most Relevant” reviews.
And finally, we will look at their “Best Reviews”
On average they have a 3.9 out of 5 score which is a bit low.
Mind you, there are a lot of people that come into the precious metals arena with little or no understanding of what is involved and they have a hard time understanding the idiosyncrasies of buying metals and get agitated at the vendor out of context.
Being in the industry myself, I have personally seen this issue in real time so I take reviews with a grain of salt most of the time.
Bad reviews should never be a reason not to, at least, investigate the company. Bad reviews can highlight issues for a company that they have aspects of their systems that require some attention and most good vendors will address those issues eventually or they will not survive.
Use bad reviews as a launchpad to understanding the struggles of the company and also as a foundation to know where to begin questioning them when t you contact them.
Also, keep in mind that many companies with all good reviews buy these reviews and so they are a false indicator. Some practitioners will even buy fake bad reviews against their competitors to denigrate their reputation intentionally.
As a consequence, all reviews should be discounted and you should consider talking directly to the company yourself and make your judgements based on that.
What are 7k Metals?
Since 2016, 7K Metals has been providing its services to customers from its headquarters in Idaho. Multi-level marketing is incorporated into the structure. That means, the more points you gain through recruitment, the further up the ladder you climb, and the more reward you receive.
However, to get started with the company, you are required to pay a significant annual membership fee. In addition to that, you will be required to purchase the items from their online market. Even though 7K Metals asserts that the costs of their products are reasonable, several online evaluations assert that the markups are more than twice as expensive as the amount that the silver itself is worth.
The company also offers a wide selection of jewelry for purchase. Again, there are assertions that the prices are reasonable in comparison to those offered by other jewelry retailers. However, it is difficult to ascertain whether the pricing is ideal for the level of craftsmanship and quality that is involved.
You will be able to participate in the Dealer Direct program if you decide to go through with the acquisition of membership with the company. Those who participate in this program will be eligible for price reductions on select items sold by 7K Metals. When you buy in large quantities, you are eligible for deeper discounts and further savings.
Bear in mind that these price reductions are being applied to products that have already had their prices increased. In addition, wholesale retailers are happy to provide clients with bulk discounts even if they do not have a membership with the wholesale store. When compared to other gold dealers, who will simply sell you gold without charging you any additional fees, you are essentially paying to have the ability to buy gold.
The products made by 7K Gear are the other primary items that are sold. These are not precious metals; rather, they are clothing and accessories with the 7K Metals brand name displayed prominently on them. People would often buy them as a way to showcase their new investment in the company to potential customers.
The memberships are offered at two distinct levels, each of which is much more expensive than the previous one. You are also required to enroll in a travel savings plan, the fee of which is equivalent to that of the membership. As a result, the membership fee must now be paid annually rather than monthly.
The company asserts that customers can increase their income by operating their own precious metals microbusiness in addition to reselling the company’s existing products. However, making a profit by reselling the products can be challenging. The majority of people attempt to make money, but their primary focus is on recruiting new members. The more people who join your group through your recruitment efforts, the more points and money you will accumulate.
You will receive payment every time a new user joins the service by providing either your name or a referral code. You will get paid for all of those people’s recommendations as well if they go on to sign up other individuals in turn.
- Each order includes shipping & shipping insurance
- Numerous storage locations offered across the country
- Simplified IRA rolling process
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Who formed 7k Metals?
So, without further ado, allow me to present to you the founders of 7K Metals.
We’ll talk about Zack Davis first. As a student, he got exposed to the concept of network marketing and now he has a lot of experience working for MLM organizations.
The next person on the list is Richard Hansen. He is an experienced prospector of precious metals and has worked in the network marketing industry for the past 34 years. In addition, he is a collector of precious metals.
The next person on our list is Roger Ball, who is widely renowned for his business success. He owned Paycation in 2012 and 2015 and owned JD Premium.
Josh Anderson comes in last, but certainly not least. At the young age of 21, he became interested in network marketing, and in 2008, during his first year working for another multi-level marketing organization, he created an incredible network of over 18,000 people. In later years, he rose through the ranks to become CEO of the same organization and oversaw its growth to more than 26,000 members.
What Kind Of Products Does 7K Metals Offer?
The following items are sold by 7k Metals:
- Gold bars
- Silver Bars
- Platinum Bars
- Other Precious Metals Bars...
- Gold Coins
- Mint Silver
Additionally, 7k Metals offers an extensive variety of jewelry for customers to select from. 7k Metals has an arrangement with a leading private safe provider, making it possible for you to keep all of your collections in a secure location.
You do not need to be a citizen or resident of the United States to sign up for a membership plan at 7k Metals; but, to shop on their website for some products at the member’s pricing, you do need to be a member.
It goes without saying that to generate money, you will need to have a large network of wealthy people that are willing to buy these things on your behalf.
Making Money With 7k Metals
The following is the deal if you are thinking about selling products made by 7K Metals: to get paid, you will need to have earned a total of 500 points. You will get 20 points for every sale that you make.
Now, some people have voiced their disapproval of MLM (multi-level marketing) 7K Metals, stating that it is extremely difficult to achieve success in such businesses. To tell you the truth, they may have a point: studies have shown that members of multi-level marketing companies frequently incur financial losses, with success rates ranging from 0 to 30 percent. If you are interested, you can learn more about this topic by clicking on the link provided.
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7K Metals Memberships
You need to fulfill several prerequisites before you can get started:
- You must be of legal age in the nation in which you reside; you must be a legal resident of the United States, one of its territories, or another country in which 7k is officially open for business; and you must have the legal capacity to enter into the 7k Agreement in any of those countries.
- 7K requires associates based in the United States to furnish either a valid Social Security number or a Federal Tax ID.
- Associates located in countries other than the United States demand confirmation of residency and tax status in the country in which you are enrolling or the nation in which you currently live.
- Send an application and agreement to become a 7K Independent Associate that is filled out to 7K Online.
- You will have access to items such as member direct pricing and collector’s training if you acquire a 7K membership, which you can do if you meet the standards that they have set forth. This is also the first step towards creating a downline of 7,000 people and receiving weekly rewards from the company.
The following are the alternatives available to individuals who are qualified candidates for membership in 7K Metals:
- 7k Standard Membership for $199.
- 7K Standard Plus ($359)
- 7K Premium Membership ($499.99)
You will, of course, also receive major training on recruitment tactics as well as team motivation when you sign up for one of our membership plans.
Pros and Cons of 7k Metals
- Diverse Precious Metals: 7K Metals sells gold coins, mint silver, platinum, gold, and silver bars.
- BBB member: 7K Metals is BBB-accredited. This reassures customers the company is legitimate.
- Cheap: 7K Metals buys precious metals from the world’s top distributors at low prices to offer its customers the lowest deals.
- Veteran Founders: MLM entrepreneurs formed 7K Metals.
- Investing: 7K Metals lets investors invest in gold and silver, a secure future investment.
- High-Risk Investment: Precious metals investing is risky and may not pay off.
- Financially Unregulated: 7K Metals may commit fraud or other unscrupulous acts that put clients at risk because it is not regulated by financial authorities.
- Knowledge Gap: Customers unfamiliar with the precious metals market may struggle to understand 7K Metals’ investment risks.
- MLM: For those unfamiliar with multi-level marketing, 7K Metals may be dangerous.
- Market volatility: Investors risk price fluctuations in precious metals markets. 7K Metals investors may lose money.
The Framework Of The Compensation
Binary refers to the structure of the compensation plan utilized by 7k Metals. When you succeed in recruiting new members, you increase your income. Imagine that this compensation plan resembles a “V” flipped on its side, with you sitting at the very top. Members who sign up on your right side will be located on your right, while members who sign up on your left side will be located on your left.
A point system is used by 7k Metals to determine how much of your inventory has been sold:
- The associate earns 100 points if they either bring in new members or pay the annual cost of $250 out of their pocket.
- The associate purchases coins and arranges for them to be delivered immediately (worth 25 points).
- You can build up your coin balance and increase your earnings by acquiring coins from affiliates for which you have signed up.
- 7k Metals only distributes a negligible portion of its total sales revenue.
- There are two different commission programs based on the sales made by your team.
- You will receive $500 per week if you have a total of 500 points on both sides.
- One thousand points are equivalent to one thousand dollars every week.
- Everything from five hundred to one thousand is reset the next week.
- You have one week to accumulate 1,000 points, or you’ll have to start over.
- It is spelled out in the compensation plan that they have.
To qualify for a payout from 7k Metals, you must first meet certain requirements, including the following:
- Every month, you are required to have at least 25 points.
- A minimum of 25 points must be awarded to each of the two newly recruited members each month.
- Last but not least, all new members are eligible for a match bonus of 5% of their initial deposit.
Is 7k Metals a fraud?
Even though 7K Metals is not technically a pyramid scheme, it can be challenging to build a profitable business with the help of the program. Even if it is feasible to earn money with 7K Metals, doing so demands a substantial amount of effort in addition to a patient disposition. A restricted point system is used for the compensation plan that is provided by 7K Metals. Members are awarded 20 points for each product that is sold, but they do not receive a payout until they have accumulated a total of 500 points. On the other hand, no information can be found concerning the income of 7K Metals members.
Final Verdict
7K Metals is a multi-level marketing company that centers its business on the distribution of various precious metals goods. Since 2016, it has been operating, and over that time, it has steadily gained more and more customers.
On the one hand, 7K Metals provides its customers with a diverse selection of goods and services, some of which include gold or silver coins, bars, and jewelry.
In addition to that, they provide a rewards program for their consumers, which may be viewed as a significant benefit for those individuals who are interested in becoming engaged in an MLM.
On the other hand, some individuals have leveled the unfounded accusation that 7K Metals is a pyramid scheme against the company. Additionally, they have high entry membership fees as well as premium membership fees, both of which can be off-putting to prospective customers.
In addition, there are additional rival MLMs that provide opportunities to generate revenue, and these alternatives should also be considered as potential opportunities.
In conclusion, 7K Metals is not a pyramid scheme; rather, it is comparable to other multi-level marketing and affiliate marketing programs in that it possesses both positive and negative aspects.
Prospective clients need to conduct their investigation to decide whether or not the product is suitable for their needs.
Frequently Asked Questions (FAQ)
A Gold IRA is an example of a Self-Directed IRA. Self-Directed IRA’s were designed to give individuals more freedom in the selection of investments that they could hold in their retirement account. A Gold IRA is unique to precious metals, where the investor/individual has the ability to hold gold, silver, and other precious metals such a platinum and palladium in their account rather than being limited to traditional stocks and bonds.
By holding precious metal investments in a Gold IRA, this gives the ability for individuals to make their portfolio more diverse and prepare themselves for future financial success. Having a diversified portfolio makes for a better chance to survive a stock market crash and still have some of your funds held in other categories, such as gold.
There are various options when it comes to investing in gold. One option is to purchase gold coins or bars from a local retail shop or gold investment company. You may then hold the metals until you are satisfied with their growth, ready for retirement, or need them for another expense.
Another option to invest in gold is by setting up a Gold IRA. These are a form of a Self-Directed IRA, only your funds can be held in gold rather than stocks and bonds. This is a good way to invest in precious metals without worrying as much about taxes.
The value of a gold coin increases as the value of spot gold increases. The number that is printed on each gold coin (known as the face-value) is not an accurate reflection of its true valuation. In fact, its value is likely much higher than the face-value based on the current price of gold today.
Depending on your age, current financial position, and personal preferences, the answer to this question will vary per person. If you are coming up on retirement, you’ll want to take fewer investment risks and may not want a large portion of your money in gold. If you’re still young and have more time to take greater investment risks, you may want a larger percentage of your portfolio invested into gold.
Like many investments, it is optimal to buy at a low value. Generally speaking, when the stock market is over-performing, the value of gold is at a much lower amount. Gold also follows some trends such as a decrease in certain months of the year, including January, March, and April.
It is always a good idea to seek out a financial advisor to help discuss the best options for your current situation. This way you can shift your investments based on what makes the most sense for your financial goals, and the current economy.
Your current plan may not give you the option to invest in gold, but there are numerous other plans that allow gold investments. Keep in mind that there are specific rules set out by the IRS regarding how gold can be bought and stored. Because of these rules, it’s important to find a reputable company to work with.
You are legally allowed to do a 401(k) rollover and avoid paying taxes and penalties, but to do this you must follow the correct process. Start by contacting your current 401(k) plan and explain your situation. The rollover may take several weeks or months to complete, so it’s best to begin as soon as possible.
Traditional 401(k) plans and IRA’s are tax-deferred savings accounts, meaning you do not need to pay any taxes on your contributions. Once you retire and eventually withdraw your funds, you will pay taxes on those withdrawals. You will not get any tax breaks if you purchase gold for personal ownership. Right now, the only way to avoid paying taxes on gold is by purchasing it through your 401(k) plan or IRA.
Although this process is a bit tricky, you absolutely can purchase physical gold in your 401(k) plan. Since your IRA cannot be the seller and holder of the gold, they will need to store the physical gold with a third party. You are also not personally allowed to hold the gold. You may only keep gold and silver in a plan of this type if someone else is storing it, according to the IRS. While you will not be allowed to have physical control over the gold, you may still be allowed to access the storage facility.
Yes, any gains made on the gold held in a Gold IRA are subject to capital gains taxes. Additionally, if you take a distribution from the Gold IRA before you reach the age of 59 and a half, you may be subject to income taxes and a 10% early withdrawal penalty. Things may differ depending on whether you have a traditional IRA or Roth IRA.
No. You are not allowed to take physical possession of the gold or other precious metals held in an IRA account.
No. Home storage is not allowed and could have serious tax implications if you are found to be taking physical possession of the gold held in your IRA. You must store the gold with an IRS-approved custodian. Any company that promotes home storage is not providing sound advice and should be avoided.
No. The IRS does not allow precious metals to be stored in a safe deposit box. The custodian/depository must always maintain possession of the gold.
This is a tricky question.
Mostly, no. For most folks, it’s impossible to take physical possession of their gold without paying severe fees.
There is however a workaround for very (VERY) few individuals.
A “Checkbook IRA” allows the IRA owner to have more control over their investments. They can use an LLC to make investment decisions and hold assets on behalf of the IRA. The LLC is owned by the IRA and managed by the IRA owner or someone else. The assets, including precious metals, can be stored in a place chosen by the LLC, like a storage facility or the IRA owner’s home as long as it’s secure and insured. Though, the IRS has strict rules for using a Checkbook IRA and storing IRA-owned assets.
Some of these rules include:
- A minimum net worth of $250,000.
- Must have a corporate legal counsel.
- Ownership must be shared among multiple individuals.
- And much more
Keep in mind that this loophole is not recommended. There is a possibility that you will be penalized and even possibly disallowed from future investments. It’s not worth the risk, even if you do meet all these requirements.
Remember that your specific situation and goals should always be discussed with your tax advisor.
