There is a certain alluring appeal that comes with gold. It is- and has always been- a desirable asset for thousands of years, through the ages of kings, legends of pirates, and now, the world of finance, securities, and stock exchanges.
EmGoldex, which rebranded as Global Intergold, is one of many companies that has jumped on the gold bars investment bandwagon. It claims to offer a platform for anyone who is interested in buying their own piece of treasure. However, is it what it claims to be?
In this review, the inner workings of EmGoldex are investigated and the truth exposed. Before investing hard-earned money into this company, everyone should read this review and make an informed decision.
IMPORTANT – before we get too far in this review, we’d like you to know we’ve vetted quite a few companies in this space.
We know that selecting a company to work with is a major financial decision and something not to take lightly. InvestingInGold.com has put in extensive research spanning many years in order to compile a list of the 5 highest recommended companies for this year.
==> See our #1 recommended company for precious metals investing
We urge you to view the links to see where EmGoldex stacks up against the competition.
Overview
- EmGoldex is a pyramid scheme, not a legitimate gold investment opportunity.
- Very few gold bars ever reach the person who bought them.
- The company rebranded as Global Intergold (GIG) after the Securities and Exchange Commission (SEC) issued a warning against EmGoldex and branded it a Ponzi scheme. It also opened a branch under the name of Prosperous Infinite Philippines Holdings Company, which is also guilty of code violations.
- Investors are required to bring other people into the fold before receiving a payout.
- Despite claims of ties to gold and securities businesses in the United Arab Emirates, the Dubai Multi Commodities Center has outwardly denounced any connection and confirmed that the company is not licensed.
- EmGoldex, Global Intergold (GIG), and Prosperous Infinite Philippines Holdings Company (PIPHC) are all banned in the Philippines and various other countries, based on international media reports.
In a nutshell, this is a scheme, not a recommendable company. Here is a more in-depth look at what is involved in the EmGoldex Scam and at why anyone who wants to buy gold online should look elsewhere.
What Is EmGoldex?
EmGoldex (now named Global Intergold) is, on the surface, a gold investment company. In exchange for cash investments, members are provided with a gold starter pack worth thousands of dollars. Although the company markets itself as selling gold, very few physical gold bars are ever seen by the investors.
What EmGoldex is not is a registered corporation or partnership, meaning it is not regulated or approved. Put simply: it is a scam.
Investment Specifics
When first signing up to EmGoldex/ Global Intergold, the account holder must order a starter pack of investment gold bars. The estimated value is said to be around $8,000. Unlike most investments in financial products of any kind, the entire monitory value is not required, nor does the product become readily available to the person who ordered it.
There are two payment options for those who fall victim to the EmGoldex scam: pay around $630 (€540) for basic access, or $1200 (€1050) for accelerated access. From that point onward, the Ponzi Scheme unravels.
The EmGoldex Pyramid Scheme: How It Works
Like all pyramid schemes, EmGoldex relies on investors referring friends, colleagues, and other trusting parties to the investment platform. It is through the recruitment of new members that the company manages to pay out dividends to its previous victims.
Here is a rundown of the exact process to expect after joining EmGoldex.
Investment Gold Bars
As stated above, the first step is making a bulk payment to the business. It is defined as a down payment on a gold bar starter pack. However, it is really a ploy to solicit investments into the EmGoldex business directly.
Access the EmGoldex Marketing Program
Once the initial payment is confirmed, members are provided with an access code into the EmGoldex marketing program. It claims to be an informational portal that connects the EmGoldex teams and helps individuals to move towards the afore promised huge returns. In reality, it is a multi-level marketing structure designed to force people to recruit new investors.
The victim enters their code and is placed into a payout structure with other members and given further instruction on how to proceed.
Bring In New Investors
Now, the scam progresses. By this point, the member is already directly invested in EmGoldex but has no funds or assets to show for it. They are left with little choice but to play ball.
Each new member recruits investors to join the pyramid. It works on a one plus two basis, in that every one person must bring in two new people. This is how the business grows and how the scam thrives.
With EmGoldex, members should entice others with all the exciting benefits that a gold investment can bring, despite the fact they are not technically investing in it at all. Many victims must resort to referring friends or people they work with to have any hope of recovering their initial down payment.
Receive Payout
When a person has reached the required recruitment numbers (two people, in most cases), they become eligible for a payout. If someone refuses or fails to bring in new victims, they lose their money. Those who continue the chain receive the agreed payout, although there is no exact specification as to what the terms are anywhere on either website.
Because most people are now very aware of what a pyramid scheme looks like, it is increasingly difficult to recruit investors. When somebody does get pulled in, it can take years to find two new recruits, and many people give up before they do.
The Endgame
Every Ponzi scheme eventually reaches a point when the offending company can no longer sustain the payout amounts, and the whole thing crumbles. EmGoldex and GIG investors who have money tied up in the scam when that happens are at risk of losing everything.
Because the pyramid relies on new money coming in through the one plus two ratio, it cannot support itself without it. It can also grow too large and have more payouts than investments, which also leads to inevitable collapse.
What Does EmGoldex Claim to Offer?
The power of gold and all those who have it is the primary play for EmGoldex. Using the magnetic appeal it has to so many and riding on the recent wave of popularity amongst online precious metals retailers, the brand has managed to twist the solid and reliable image and use it for evil.
To new members, it promises huge returns and financial stability, thanks to the unwavering strength of gold. Like most investments scams, EmGoldex significantly oversells what it can offer, even if it was a legitimate platform. Talk of international fortunes and how self-education and training with the EmGoldex team is the path to success are early warning signs that something is wrong.
The low risk, high reward mantra combined with pressure to act fast and limited upfront information is a huge red flag from the get-go, not to mention the multiple warnings from the people who know best.
What Does the Securities and Exchange Commission Have to Say?
The SEC’s primary mission is to ensure that every corporation dealing with any security investing or exchanging is doing so legally and compliantly. In the investigation of EmGoldex, the investor protection department did not find this to be the case.
Neither EmGoldex nor its alias, Global Intergold, are approved or sanctioned by the SEC. In both the Philippines and Columbia, both entities
Illegal Distribution: Unregistered Securities
All securities should be registered and reported to the SEC before they can be legally sold and traded. Selling a security before it is registered is a criminal act. The only exceptions are within private corporations between members and partners, but SEC should still be informed.
EmGoldex was not only found to be illegally distributing unregistered securities, but they were doing so predominantly via information and communication technologies. This carries a higher penalty because it falls under financial cybercrime.
What Happened to EmGoldex Philippines?
In the Philippines, EmGoldex was involved in a scandal and subsequent ban after members of the Philippine National Police were affected by the scam. Two active PNP officials invested in EmGoldex, only to uncover the truth behind the scam.
Because two of their own had lost money to the scheme, the Philippine National Police led the charge to gather evidence and launch a case against the business. The desire to bring down the pyramid was even greater as the house burned down of one of the two PNP officials not long into the investigation, leaving them in dire need of the funds he chose to invest unknowingly.
The island nation and its residents have, as it turned out, lost a great deal of money to the corporations in question, leaving investors penniless and unable to retaliate. Because the EmGoldex, GIG, and Prosperous Infinite Philippines Holdings entities operate primarily online, the cybercrime prevention act played heavily in the sentencing. Crimes committed against this act carry a higher penalty in the SEC’s enforcement.
Securities and Exchange Commission (SEC) Chairperson, Teresita J. Herbosa stated that protecting overseas Filipino workers was a priority for the interior and local government and the SEC. The responsibility to protect Filipino investors and assist victims from scams that breach the regulation code was a driving force behind the SEC-issued cease and desist order.
What Was the Outcome?
EmGoldex Philippines was issued with a cease and desist order from the Securities and Exchange Commission for unlawful distribution, unregistered securities, and crimes committed under the cybercrime prevention act.
The business changed its name and opened a new branch claiming to assist GIG investors and overseas Filipino workers who could not retrieve their investments. It became quickly evident that this was another scheme that recruits investors, and it was outlawed by both interior and local Government.
The Final Verdict
EmGoldex is a classic Ponzi scheme that has already cost many Filipino investors a lot of money. As long as people continue to invest, the scam is bound to collapse and take every penny with it. There are so many excellent investment platforms that conform to the securities and regulation code. They offer genuine products and opportunities to their members and are genuine venues for serious investors.
Investment scams such as EmGoldex or Global Intergold are a mark on the financial industry. By using an asset as coveted and reliable as gold, this company hopes to disguise its true nature: an illegal pyramid scheme masquerading as a place to buy gold online.
About Tim Schmidt
Tim Schmidt is an Entrepreneur who has covered retirement investing since 2012. He's also a published author, and his views on investing have been featured in USA Today, Tech Times, The Huffington Post, Nasdaq, and many more.
