SwissGolden Review: 220 – 9850 EUR gold matrix scheme
There is no information on the SwissGolden website indicating who owns or runs the business.
The SwissGolden website domain (“swissgolden.com”) was registered on the 22nd of May 2012, with the registration simply listing the company’s name as the domain owner.
An address in London, England is also provided, however this is a virtual mailing address provided by Regus (£59 a month).
Meanwhile in the SwissGolden service agreement, the company claims to be registered in the British Virgin Islands (a known tax-haven).
As always, if a MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
The SwissGolden Product Line
The SwissGolden website has a “WebShop” featuring “gold ingots” ranging in price from 42 to 3129 EUR.
If you try to add any of the products to your shopping cart however, nothing happens.
There’s a “to order” button at the bottom of the page, however if you click that the WebShop demands a SwissGolden affiliate ID.
For all intents and purposes it appears SwissGolden do not sell anything at a retail level.
The SwissGolden Compensation Plan
The SwissGolden compensation plan revolves around affiliate purchasing positions in four matrix levels.
An additional points-based performance bonus is also offered.
The SwissGolden compensation plan revolves around affiliates purchasing positions in a series of reverse 2×2 matrices.
A 2×2 matrix places an affiliate at the top of the matrix, with two positions directly under them (level 1):
Under these two positions another two positions are created each, with these positions making up the second level of the matrix. In total there are six positions to be filled.
Positions in the matrices are filled via the purchasing of positions by SiwssGolden affiliates.
Once all positions in a matrix are filled, SwissGolden pay the affiliate who holds the top position (the pay position) a commission. At this point the top position cycles out, and the two positions on level 2 form the start of two new matrices.
This leaves four positions empty in both of the two new matrices, which are then required to be filled before the pay position earns a commission again.
As mentioned previously, there are four matrices in the SwissGolden compensation plan. Here are their respective payouts:
The Preliminary matrix is the first of the four, with positions costing 220 EUR each.
Once all six positions in a Preliminary matrix are filled, the pay position is paid 72 EUR and cycled into the bottom of a Main matrix.
The Main matrix functions the same as the Preliminary matrices, with the exception that new positions are fed into the bottom of Main matrices via cycled Preliminary matrix positions.
An affiliate can also purchase additional position in a Main matrix for 720 EUR.
A Main matrix position is able to cycle through a Main matrix up to three times, paying out 1890 EUR the first and second times and then 2520 the third time (total payout is 7000 EUR).
Note that if an affiliate’s position cycles into a VIP position at this point, they will be charged 2800 EUR (the cost of the third cycle payout).
VIP matrix positions must be purchased for 2800 EUR.
VIP matrix positions follow the same three cycle formula as the Main matrices, paying out 7425 EUR on the first and second cycles and then 9900 EUR on the third cycle.
Note that if an affiliate’s position cycles into a VIP Plus position at this point, they will be charged 9850 EUR (subtracted from the third cycle payout).
VIP Plus matrix positions cost 9850 EUR and once again follow the three cycle formula. The first and second cycles pay out 26,460 EUR and the third 35,280 EUR.
Note that the above commission payouts are only applicable if an affiliate cycles out of a matrix with two personally recruited affiliates holding positions in the matrix.
If this is not the case, then the following cycle commission amounts are instead paid out:
- Preliminary – 200 EUR
- Main – 700 EUR
- VIP – 2750 EUR
- VIP Plus – 9800 EUR
For the Main, VIP and VIP Plus matrices, it’s unclear whether or not positions that cycle out without 2 recruited affiliate position in the matrix run the full three cycles.
The Leadership Bonus is funded with 10% of every matrix cycle commission payout. Note that to keep things simple, I’ve already deducted the 10% from all the quoted cycle commission payouts above.
The Leadership Bonus is a points based bonus, with an affiliate generating points each time they cycle out of one of SwissGolden’s matrices.
To determine how many points an affiliate is awarded when one of their positions cycles, the amount paid out is divided by 500.
Eg. If an affiliate position cycles out of a Main matrix for the first time, they are paid 1890 EUR. 1890 divided by 500 is 3.78.
The amount of points allocated is then paid out using a level system, with an affiliate’s total accumulated points dictating the EUR multiplier used to determine the Leadership Bonus paid out on each cycle:
- 1 to 99 points = 15 EUR per point
- 100 to 299 points = 20 EUR per point
- 300 to 999 points = 25 EUR per point
- 1000 to 2499 points = 30 EUR per point
- 2500 to 4999 points = 35 EUR per point
- 5000 to 9999 points = 40 EUR per point
- 10,000 to 24,999 points = 43 EUR per point
- 25,000 to 49,999 points = 45 EUR per point
- 50,000 to 99,999 points = 47 EUR per point
- 100,000 to 199,999 points = 49 EUR per point
- 200,000 or more points = 50 EUR per point
Using the points generated in the above example, and assuming it is an affiliate’s first cycle, they have a total 3.75 points with 3.75 points paid out.
This equates to a 56.7 EUR commission (3.78 * 15).
If the affiliate in the example had 50,000, the same 3.78 points would result in a 177.66 EUR bonus.
Note that in order to qualify for the Leadership Bonus, a SwissGolden affiliate must cycle out of at least one Main matrix. So too must two of their personally recruited affiliates and two of their personally recruited affiliates each.
Affiliate membership to SwissGolden appears to be free, however affiliates must purchase a matrix position in order to earn commissions.
This makes the defacto cost of SwissGolden affiliate membership at between 220 EUR (Preliminary) to 9850 EUR (VIP Plus).
Any additional matrix positions will increase the cost of affiliate membership.
As with all the gold schemes running out of Europe, the SwissGolden compensation plan is a soup of terms like “tables” and “orders”. The company does it’s best to present an outwardly complex compensation plan, merged together with somewhat legitimate sounding terminology.
In effect, SwissGolden is no different to your standard matrix-driven Ponzi pyramid hybrid scheme.
Affiliates sign up and buy matrix positions. One enough new matrix have been purchased, either directly or indirectly, they get paid.
In this sense SwissGolden functions like a Ponzi scheme, with an affiliate’s matrix position qualifying as the investment.
The recruitment requirements to earn the full ROI (matrix cycle commission) and Leadership Bonus introduce a pyramid scheme layer to the scheme (hence it’s a hybrid).
The Leadership Bonus serves merely as a recruitment incentive, requiring a huge amount of recruitment to first qualify (if all positions cycle in from the Preliminary matrix level), and then directly paying affiliates based on the total number of cycles they have (requires recruitment and/or investment in positions).
As is usual with European gold scams, the gold component of the scheme is irrelevant. All funds taken in by SwissGolden are cash, and similarly commissions paid out are the same.
To create the illusion of legitimacy, the standard gold storage and postage of gold options that are typical of these schemes are offered.
The gold storage sees SwissGolden take affiliate funds from their backoffice and purchase gold with it. Up until that point there is no gold purchased, with an affiliate’s funds used to pay off existing investors who have cycled out of matrices before them.
At this point an affiliate can pay a storage fee of 0.1% of the value of the gold each month, or opt to have it sent to them.
Again it’s important to note that while gold may indeed by purchased at this point, it’s only after the Ponzi/pyramid scheme business model has paid out.
The facade presented to affiliates is that gold is being purchased from the get go, but that’s obviously not the case (or SwissGolden would not have any money to pay matrix cycles with).
With nobody in their right mind opting to have gold sent to them (prohibitive shipping fees), the third option is to simply withdraw SwissGolden commissions as cash. And thus the standard matrix-driven Ponzi pyramid hybrid scheme circle is complete.
As with all Ponzi pyramid hybrids, recruitment slows down and affiliates stop purchasing matrix positions, said matrices will begin to stall. Once enough matrices have stalled the scheme collapses.
Those with funds trapped in matrices are unable to cycle out, and the admin does a runner.
And in the case of SwissGolden we don’t even know who the admin is, so that’s definitely something to keep in mind.
The absence of company ownership details on the SwissGolden website and registration in the BVI is not an oversight, it’s by design.
Great article Oz.
Now the Sec is investigating Emgoldex
Thanks for the head up Charles. Great to see Galvin’s continued proactive regulatory action.
Under the current system, by the time the complaints roll in it’s often times too late.
The domain name had been around longer than May 2012. However, before then it was from a different registrar and hidden by domain proxy, so it was probably owned by a domain prospector. Nothing to see there.
I am an individual who has received either money or gold from Swiss Golden, if this company would be an scam I would not received anything from them.
All Ponzi schemes pay out as long as new investor funds flow into the scheme.
Your logic is flawed.
what will happen if you could not recruit two referrals?
SwissGolden pay you a fraction of the advertised ROI.
What happen to all new members if the domain is close?…
I’m a victim member of royalty7 a Ponzi/pyramid scheme business and all my investment are gone, coz. no admin to scrutinize with and that’s important. I ask one the group about the company profile,…no one ever gave me even the admin and much more the ceo.
Thank’s for this link that gave us reminder or should i say warning.
You lose your money.
As a member of swissgolden I found that many of us received an amount of money in a period of 1 to 3 months that we will never profit in our one year salary in our current work.
As with the rotation is concerned the revolving of the previous member going back to the first cycle of investment helps, as they can’t stop investing because the profit is very high. going to cycle back to back.
^^ You stealing funds from later investors compared to what you can make legitimately over 1-3 months is neither here nor there.
Sooner or later new investment will slow down (even with everybody re-investing) and then it’s kaboom time.
I’m trying to help a friend steer far away from swissgolden.
Can you tell me how you were able to tell that the address service is provided by Regus? Or at least how you know that it is illegitimate?
I just want as much hard evidence as possible.
The whois information for the SwissGolden domain lists the following address:
Same address is listed on the Regus website: regus.com/locations/office-space/london-barbican
Does a rented office in Regus makes it a scam? Can it be possible that they take up the space because everything needed is there: good location, meeting rooms, facilities, pantry, etc. for one price?; and the company is profitable enough to afford it?
Some companies do not want to commit to long term leases (probably due to unfavourable locations or terms) and they can take up more room as they expand without resorting to taking over next door or further renovations?
After all, even businesses in fully rented offices on long term lease can still be scams. Has happened before.
It’s one factor in the myriad of factors that say this cannot be legitimate.
Even if you ignore ONE factor, there are too many factors for you to ignore.
No. Running a matrix cycler Ponzi pyramid hybrid makes SwissGolden a scam.
A virtual office is just symptomatic of a scammer’s exit strategy.
When SwissGolden collapses, the admin(s) stop paying a monthly fee and then buhbye.
Nice work are doing here Oz.
This Swissgolden, is it the same as Swiss gold global?
Thanks for the support!
Swiss Gold Global is a different company (search bar top right of every page).
I have read various reviews about various companies on this site and its really funny that a lot of reviews carried out several years back have not come to prove that those companies are ponzi as ponzi schemes usually don’t last more than 2-3 years, SwissGolden is celebrating her 5th Anniversary this week in Paris.
I have earned more in SwissGolden than other businesses. I have ordered for some of my Gold bars and received them with evident videos on Youtube.
You can keep reviewing and remain broke, opinions are personal and opinions are free. Keep it up dude.
Ponzi schemes continue to pay out as long as newly invested funds are sourced. Outliers here and there don’t change the fact that 2 years or less is the average lifespan of an MLM Ponzi scheme.
If you look at the Alexa ranking for the SwissGolden website, you’ll see it was declining throughout 2016. It probably would have collapsed, but the MLM underbelly boom in Nigeria that hit in late 2016 saved it.
To put into perspective how much of a glass house Ponzi SwissGolden currently is, 80% of traffic to the website originates out of Nigeria.
Once Nigeria recruitment slows down the collapse will continue (unless another boom in another country puts it off a little longer).
You’re literally stealing from desperate people living in third world countries. It is saddening that this is something you’re running around the internet boasting about.
You still talk like you have small brain, ponzi don’t have products there is physical gold involved here.. Everyone pays for gold dude. Its just like saying your company will go out of business if you do not sell your business, is that not what was meant to happen for not making a sale.
Network Marketing is selling products/services and paying distributors and partners commissions from sales made for products/services.
Where the boom is coming from is not the issue. Tell me, would any traditional business thrive without marketing and selling?
If some clients are not buying your products/services are you going to start sulking that nobody is buying your products/service and then not get new buyers because you were tagged ponzi?
No one is stealing from no one, people enter SwissGolden and can request delivery for their physical Gold. In your mind you think you are helping a lot of people play safe but you are literarily chasing a lot away from taking required business risks into wealth, you are sure creating more poor folks.
I know folks like you, when you fail in one or two network marketing for pure laziness then you tag almost all network marketing company as scam.
Like I said earlier, Reviews are Opinions and they are FREE.
False (TelexFree, Zeek Rewards).
The gold only exists if someone requests their ROI be converted into it.
Other than a few slivers here and there for marketing purposes, nobody requests the conversion. The vast majority of ROI payouts are made in cash. That’s how these Euro gold Ponzi work.
Recruiting people into a Ponzi investment scheme isn’t the same as “selling a business”.
Oh it most definitely does. SwissGolden is only around today because of the scam explosion across Nigeria in late 2016.
You’re stealing from desperate people in third-world countries. Hang your head in shame.
Sure they are. That’s how a Ponzi scheme works. You invest, convince me to invest and you steal my money. I lose my money if others aren’t convinced to invest after me.
It’s financial fraud through and through.
Agreed. Losing money to Ponzi scammers such as yourself however can wind up being very expensive.
(Ozedit: Abuse removed)
SwissGolden sells Gold and delivers Gold without you being recruited into the marketing system. We have people who order for Gold directly and their gold is being shipped directly to them.
(Ozedit: Offtopic derail attempts removed)
Which has nothing to do with invested money and getting paid a ROI from subsequent investment.
What happens outside of the MLM opportunity is irrelevant. You can’t legitimize a Ponzi scheme.
Swiss Golden is advertising heavily in Nigeria, even appeared on the news
There new marketing head has been arrested with his Nigerian cohort by the Nigerian EFCC and were able to get back close to 300 Million Naira = $950k from them at instant.
They are still under custody and from investigation the swindlers have taken N3billion in total from 7000 Nigerians.
I need your opinion here, is there any matrix cycle out system that is not a pyramid/ponzi?
A matrix cycler sees you invest and then steal money from those who invest after you. By definition this model is a Ponzi scheme.
swissgolden company is legal in india or not?
No Ponzi schemes aren’t legal in India.