There's a lot of confusion online about 7k Metals so today's review will offer a deep dive into what you should know about this company as it's really not anything I'd advise getting involved in. 7K metals does offer precious metals investments but it's a multi-level marketing company that you must join so you can access the products they sell.
With so many ways to purchase gold available, from dealers, to pawn shops, collectible coin companies, and more, why someone would join an MLM and pay an additional fee to invest?
Was there something special about 7k metals that I'm missing? Read this full 7k metals review and you'll find out exactly what I dug up during exhaustive research.
About 7k Metals
Based in Idaho, this company was established in 2016. The firm runs on the classic MLM model of recruiting more people to join the program which helps you to earn points, climb up the multi level marketing structure, and earn commissions.
I've never been a fan of MLM's, but I don't judge people who have made money doing this, especially if they believe in the product they are selling.
What turned me off right away was that there is a sizable annual membership fee you'll have to pay each year in order to participate.
I don't know about you, but if I want silver coins and gold products I don't need to pay a membership fee in order to do that.
After joining, you have to buy products directly from their marketplace. This is where things started getting dicier. The 7k Metals company boasts that their products are priced cheaper than other avenues, many online reviews talk about the markups on products while the Daily Beast reported that it's QAnon leaders pushing this "doomsday" narrative.
They also sell a range of jewelry on their website.
However, there aren't any major designers or name brands you'll recognize, so my guess is they are manufacturing these themselves or simply private labeling. The fact that their "sales pitch" for a piece I viewed on their website boasts "with the price of gold going up this is a bargain" is laughable to me.
Ever seen these being traded? Me neither!
Folks, if you are into collecting things to simply collect them, I don't judge. We all have hobbies and are into different things. However, collectibles are gimmicks and have a very limited buyer pool when compared to actual gold and silver bullion that is globally accepted and highly liquid.
In short, you are buying hyped up non collectible bullion that you are paying a premium for when you could buy something like a Pamp Suisse gold bar that gold companies recognize and will buy back from you.
Sound Money Wallet
They also have a "sound money" wallet that allows you to buy gold and silver in a factional way for as low as $1.
They are transparent at least to tell us that this way to buy precious metals is for "newbies." The sound money is a digital currency converter for your cash and precious metals. You can even use this wallet to send money or precious metals to other people or alternatively have your metals delivered to your home.
For transparency, my gold IRA custodian keeps my precious metals in a depository in Texas since they are held in my gold IRA. I wouldn't trust a third party digital wallet from an MLM company with my retirement savings, that's for sure!
Is 7k Precious Metals a Scam?
Officially, this is NOT a scam, but it's nothing I'd ever let my friends or readers get involved in if I could stop them. The company also sells gear in the forms of clothing and accessories that help them promote their MLM business and recruit other people into the business.
The fact that the company advertises that individuals can earn money by reselling their products and having a "precious metals business" is very shady in my opinion. I don't know how any of these gold trinkets that are well above spot price are ever in any demand!
The fact is, with any MLM the number one way to earn money is to recruit others into a recurring membership. It's just the way these businesses work since you earn money every time a new person signs up using your referral code. And on and on the pyramid goes as you earn every time they do the same thing and sign up new members.
While you do get access to the Dealer Direct program that mentions discounts on 7k Metals products, again, I don't see any of the coins or bars that I'd actually invest in.
And like any bullion or coins, those prices are marked up. Every company does this just like any other product you purchase from other gold dealers but in this case the "business" side of it is selling these products to non members.
Despite all of this, they do have some positive reviews online in addition to being accredited with the Better Business Bureau, where they maintain an A+ rating.
I'm sure this boils down to the early action-takers who got in, built a pipeline, and have a thriving business selling precious metals. This is quite common with MLM programs as outlined by the MLM statistics that show over 50% of people drop out of these types of programs every year. Additionally, only about 25% ever make a profit.
I always appreciate a company pivoting to create hype around a product, and this very well could be the only precious metals firm that operates like an MLM, so I do applaud the founders on the creative, yet strange choice to create this type of company set-up to sell products.
I dislike that there isn't a plethora of education on gold and silver on their website. While people are promised a business model allowing them to sell gold and silver coins there isn't anything that dives into why precious metals investing is a sound choice.
It seems to me like getting anything from 7k Metals requires a subscription.
More Input on the 7k Metals Reviews & Complaints
I sifted through a lot of the reviews online and this one really stuck out to me.
This was posted on the Better Business Bureau website.
Also, you can clearly see the focus on the MLM model (versus investing in gold and silver for value) based on their "Gala Dinners" like this one I found being promoted in Las Vegas.
Any time I see a free dinner for "Rankups" (which has to be some sort of internal leader board based on how many people were suckered into joining), I cringe. These are simply perks and kickbacks for their top earners since the founders are more than likely making money hand over fist.
It even talks about how you can "transform your business," which proves my point. This program isn't geared towards helping you buy gold and silver, it's all a business ploy.
They also had this getaway in Cancun if you want even more color on that.
7k Metals Alternatives
If you are looking for a solid place to purchase metals to be delivered to your door, read about Pimbex. If you are looking to add it to your retirement, I used Goldco and had a great experience.
Final Thoughts
If you are interested in an MLM business that involves buying and selling precious metals and recruiting other people into a membership they may or may not have the savings to spring for, you should head to their website and become one of their customers.
However, as an investor and industry watchdog, I can't endorse this business otherwise for buying bullion or coins. It's simply not on par with legit places to purchase gold.
About Tim Schmidt Sr.
Tim Schmidt is an Entrepreneur and Serial Investor. Since 2012 he's been an advocate of alternative investments using a Self Directed IRA. His work has been featured in Yahoo! Finance, USA Today, Business Insider, and Tech Times, among others.
