Joseph Wealth Systems
Has anyone heard of or used Joseph Wealth Systems?
I like to keep an eye out for any “interesting” financial program and this was the most recent one that was presented to me. I wrote about Primerica and had a discussion about Money Merge accounts in the past because they were different programs that needed to be talked about. I really want to hear what people have to say about Joseph Wealth Systems (JWS).
The first thing I noticed is that it is an MLM. Multi-level-marketing things in and of themselves don’t bother me, but often it is the people involved that leave a bad taste in my mouth. Just to be fair, this is not always the case, but I just hate wondering if my “buddy” is calling me to come over for dinner because he enjoys my company or if he secretly is just wanting to sell me something.
This is a copy of the referral email that I received….
Here’s what I’m doing now. It’s a gold savings plan where you get paid to save. It’s called the Joseph Wealth System. It’s based on Joseph in the Bible. When he was prime minister of Egypt he saw ahead that hard times were coming. He stored up grain, then he sold it to the people in exchange for silver and gold and a great wealth transfer occurred!! Then 400 years later, when Moses led the children of Israel out of Egypt, God told them to go to the houses of the egyptians and get their silver and gold! Where did that come from? Joseph stored it up over 400 years earlier!!! Wow!!! I never get tired of hearing that. Anyway, I’ll send you the link and I’m always happy to talk to anybody about this stuff. I’m getting the tangible appreciating asset of gold paid for, plus cash in my pocket!! Paid to save!!!
The basics of JWS
Even after watching a couple videos and reading on their site about the program I am still a little confused as to what is actually going on. I think the way it works is that you set up a plan to buy gold coins from them, they auto-debit your account each month, and the person who introduced you gets a cut of that amount.
I don’t know a ton about investing in precious metals, but from my experience the only people who make money with them are those who trade in and out at the right time. Those who buy and hold don’t seem to make too much, since their value and demand changes so often.
This is a chart of Gold prices over the last 33 years…
As you can see the last 10 years have been tremendous for gold prices. Remember the Golden Rule of investing: buy low, sell high. I can’t help but wonder why this company just started last year. Could it be that they realize that Gold is over-valued and they are trying to unload it before the prices adjust downward?
Gold as protection from Inflation
While I am uncertain about the ability of gold to continue it’s increase in value, I am confident in it as a hedge against inflation.
U.S. dollars are merely a piece of cloth that we have agreed is worth a certain amount. It’s value can and does change - quite rapidly sometimes. Our government has learned a few things and has put some protectors in place to minimize the likelihood of another Great Depression and control the inflation levels in the country.
But, as a country, the U.S. has some major financial flaws that are not very encouraging. If hyper-inflation did occur Gold, silver, maybe diamonds, land, etc would have a more consistent value than your paper money.
For this reason, I would consider buying gold, but I am not convinced that it would be useful as an appreciating asset. Maybe someone can help me out with this…
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Comments on Joseph Wealth Systems »
These are all very good questions. I ran across a website recently that has a short video series that will seriously open your eyes to the current economic situation, and why gold may be the investment of a lifetime: http://www.chrismartenson.com/crashcourse
All the best,
Alex
@Rapid
thanks for sharing… before watching the video I am little skeptical, because I just don’t see gold as a solid longterm investment… but I will take a look
You ever notice how *after* some commodity like gold has a big run up, everyone starts talking about it? If you’re trying to buy low and sell high, that is usually the exact wrong time to buy some. I remember a few months ago when gold was up over $1000 I started seeing all kinds of ads and such for gold on CNN money. Strangely, after it had dropped 15% or whatever, the ads disappeared.
I’m not sure that they invented the system to get rid of their gold, more likely I would say that are trying to take advantage of the fact that gold seems to be in the news a lot these days.
@John
that is exactly what I was thinking when I first heard of this…
I think your toughts on this are quite sound. I have been in the JWS program from inception in January 2008. I joined because I could see that the fundamentals of gold (and silver) were good. As you said, these metals are a hedge against inflation, if anything. The JWS concept is difficult to market though. People find it tricky to get their minds around saving anything these days. Gold is currently on a downer but as I have studied it’s use over history, it always holds it’s value. In other words you can lock up your wealth in it and it won’t be ’stolen’ by inflation.
I also know one of the founders personally and trust him…for what it’s worth. I will carry on with the scheme…at least it forces me to save!!
@Andrew
thanks for sharing, I am glad we got an insider to comment on the program.
As you mention it works well as a hedge against inflation and is an automatic savings plan - which it seems to me that it works quite well for both…
But, my concern is that long term appreciation rates seem like they will not have a chance of matching stocks, bonds, or possibly even a good money market account…
Hi Bob,
I think the problem with gold comes when people solely think of it as an investment ie. looking for a good return on income. The way I see it presently, is that gold is a store of value. In Roman times an ounce of gold would buy you a jolly good toga and a good pair of shoes. Today an ounce of gold will buy you a jolly good suit and a pair of shoes…the same value. With JWS the gold is at a premium, but only becasue of the business benefits (website, advice, and access to other cheap gold). You could just buy the shekels at around USD 140 each for 2.85 gram coin (for 4)…not bad.
Remember too that no one can buy gold at the spot price, to get an ounce of gold physically delivered to your house costs much more than that. Also shekels are non-bearer coins which cannot be confidcated, so there are a few benefits..
Andrew
http://www.jwsgoldsilver.com
By the way, if you want to hear more and ask questions, there is a webinar at:
Title: JWS - Slavery of DEBT to freedom of SAVINGS! - European webinar - (English)
Date: Tuesday, August 12, 2008
Time: 8:00 PM - 9:00 PM CEST Germany
Andrew
http://www.jwsgoldsilver.com
After researching this in detail, it is a clever system to make you not look at the big picture. When I looked you had to sign up to buy 1/10th oz of Gold every month for US$250, more than twice the market price. Then if you introduce more members underneath you you will get a component of their monthly investment, in essence your $100-150 extra pays other people. Does pyramid/chainletter ring a bell? There is nothing in their model that generates money except for people buying overpriced gold. Now some would argue, Tupperware is exactly the same thing! I agree, however, Tupperware NEVER says that buying their things will make you rich, it is simply a consumption commodity.
With their own example, in their powerpoint, of how much money you can make ($35,000 a month), over 1 million people would be involved in your tree (your referrals and subtrees) alone and only a small part of them would actually make a profit. That is not an sustainable business.
My take is that, if you want to buy gold, then get the best price and buy gold. If you want to be part of an MLM then research and get behind a good MLM. The two combined will only leave unhappy faces.
I’ve been involved actively for a few weeks with JWS.However I spent a good three months checking out the company and it’s leadership and colleagues.I’ve been satisfied that ,as far as worldly companies are concerned,they have been of a high standard.The above article was a very fair and balanced assessment.The concerns mentioned are valid,important and worth being aware of when examining Multi-Level Marketing.For example I have joined excellent copanies,built up a network,qualified for good bonus payments and then found that the company has ceased to trade.Another myth of MLM is that it is an easy road to riches and high self- esteme. True self esteme comes only from the knowledge that I am a son of God an saved though his Son Jesus Christ.However most people who come into MLM’s are not aware of this point.
Just a quick response to Daniel’s comment. JWS does have some other positives than simply being an MLM. Firstly, if someone wants to buy gold, in the form of a coin, then they can buy from colleagues. Colleagues then earn a commission on this. This has good possibilities in the current financial climate to earn income. Affordable, small denomination, tradable gold as a backup to the fiat money system. So, JWS doesn’t just mean earning an income from signing up new colleagues. Also, remember that with Tupperware you buy a consumable item that will not retain it’s value. With gold, you buy a product that will be a store of wealth.
If you want to invest in Gold, Great! JWS is just like any other MLM paying way to much money for the product. Seems really silly.
Hi Jerry,I liked your comment.Generally what you have written is correct.However these are todays prices.A Golden Koala is 243 dollars for a tenth of an once.It contains copper. The JWS Gold Sheckle is 175 dollars for a tenth of an once.The Sheckle is pure 24 C gold whereas nearly all gold coinage is only 22 C gold.I’ll leave it to you to do the math.
SPOT ON!
“If you want to invest in Gold, Great! JWS is just like any other MLM paying way to much money for the product. Seems really silly.”
At the end of the day an MLM company like this is only going to benifit the one’s at the top of the tree. in a few years time it will end up like most MLM’s failing, and the people at the top waving to it’s creditors and followers from a private cruise ship with a smile (and a champagne in the left hand!).
I have studied many MLM’s and similar set up’s over the years, they look great on the outside, lots of hype about this and that like it’s the fastest growing company in the world right now!etc, etc. reality check; I have also predicted the ones that would fail and guess what…. they did and guess what…so will this one!
As I mentioned above, one of the positives about JWS is that if it does all go to custard the colleagues are left with…you guessed it…Gold. Gold that is physically in their possession. Unlike other MLMs where you buy a pot of goo that has no value. Yes, it’s expensive gold, but it is a business and what’s more, there are no start-up costs and no penalties for leaving. Also, the Gold may actually turn a profit, even at the JWS colleague price, with the way inflation is kicking in.