Table of Contents

Kinesis Gold (KAU) & Silver (KAG): FAQ for the Curious

1. What exactly are KAU and KAG?

KAU and KAG are digital currencies representing fully allocated physical gold and silver, each backed 1:1 by metal in insured vaults and designed for everyday use with instant transferability.

2. What is the difference between KAU and KAG?

KAU represents one gram of fine gold, while KAG represents one troy ounce of fine silver; both are backed by allocated bullion with independent audits verifying the 1:1 backing.

3. How much physical gold does one KAU represent?

One KAU represents exactly 1 gram of fine gold bullion with a minimum fineness of 999.9, giving you direct ownership of that specific quantity of physical metal.

4. How much physical silver does one KAG represent?

One KAG represents exactly 1 troy ounce of fine silver bullion with a minimum fineness of 999, giving you direct ownership of that specific quantity of physical metal.

5. Are KAU and KAG backed by physical gold and silver?

Yes, both are 1:1 allocated to physical bullion, meaning each token corresponds to a specific quantity of metal held in independent vaults under user title, confirmed by regular audits.

6. What does “1:1 allocated” mean for KAU and KAG?

It means every KAU or KAG token in circulation has an exact corresponding physical bar in a vault. New tokens are only minted when new metal is deposited and fully allocated.

7. Who legally owns the gold and silver underlying KAU and KAG?

The holder of KAU and KAG holds full legal title to the underlying physical metal. The bullion never sits on Kinesis’s balance sheet; it is held under each user’s name.

8. Where is the physical gold and silver stored?

The bullion is stored in secure, insured vaulting facilities across global locations managed by Allocated Bullion Exchange (ABX), with logistics partners like Brinks and Loomis providing secure custody.

9. How is the precious metal in the Kinesis vaults protected?

The metal is fully insured at the vault level against theft and damage. Independent third-party custodians hold it under allocated title, with regular audits confirming every bar remains accounted for.

10. How can I verify that the physical metal actually exists?

Independent audits by Inspectorate International (Bureau Veritas) verify physical inventory matches blockchain supply. The Kinesis blockchain explorer publicly tracks all circulating KAU and KAG.

11. Are the Kinesis gold and silver holdings independently audited?

Yes, Kinesis conducts independent audits twice a year by Inspectorate International, a Bureau Veritas company. These audits confirm all gold and silver holdings match the outstanding digital claims.

12. Can I buy KAU and KAG with ordinary fiat currency?

Yes, you can purchase KAU and KAG with fiat currency through the Kinesis platform or on supported exchanges. You can also mint new currencies starting from 100 KAU or 200 KAG.

13. Can I buy fractions of a KAU or KAG?

Yes, on the exchange you can buy as little as 0.00001 KAU or KAG. Minting new currency requires higher minimums: 100 KAU for gold or 200 KAG for silver.

14. Can I transfer KAU and KAG to another person?

Yes, KAU and KAG are designed for easy transfer between verified accounts or wallets. International transaction fees are 0.45%, making global transfers straightforward and efficient.

15. Can KAU and KAG be used to make everyday payments?

Yes, through the Kinesis virtual card, KAU and KAG convert to fiat at payment automatically, letting you spend gold and silver like regular money while keeping the metal backing intact.

16. Can I send KAU or KAG internationally?

Yes, international transfers are a core feature. With 0.45% transaction fees and near-instant settlement, you can send gold or silver value across borders without typical bullion logistics.

17. Can I trade KAU for KAG, or vice versa?

Yes, KAU and KAG can be traded for each other on the Kinesis Exchange with a low conversion fee of 0.22%, allowing seamless switching between gold and silver holdings.

18. What determines the price of KAU and KAG?

The price tracks the spot price of gold and silver respectively, as each token represents a fixed physical weight of the metal, providing a stable value relative to bullion.

19. Does the value of KAU change with the price of gold?

Yes, because each KAU is a 1:1 claim on one gram of physical gold, its value moves directly with the international spot price of gold. You own the metal itself, not a derivative.

20. Does the value of KAG change with the price of silver?

Yes, as each KAG represents one troy ounce of physical silver, its value tracks the international spot price of silver, reflecting the exact weight of metal you own.

21. Can I hold KAU and KAG as an alternative to holding physical bullion myself?

Yes, KAU and KAG offer the security of physical gold and silver ownership without the costs and risks of personal storage. You retain full legal title to allocated metal.

22. What are the advantages of holding digitalised gold or silver rather than coins or bars?

Digitalised gold offers free storage, instant transfers, divisibility, spending capabilities, and yield generation, eliminating the storage costs, security risks, and transport challenges of physical coins.

23. Do I have to pay storage fees for the gold and silver backing my KAU and KAG?

No, storage of the physical metal backing KAU and KAG is completely free. Kinesis covers vaulting and insurance costs through transaction fees rather than charging holders.

24. Can I redeem my KAU or KAG for physical gold or silver?

Yes, holders can redeem their KAU and KAG for physical bullion anytime, subject to minimums. Logistics partners like Brinks and Loomis Zurich handle secure delivery directly.

25. What are the minimum amounts required for physical redemption?

The minimum for physical redemption is 100 grams of gold or 200 ounces of silver. A fee of 0.45% plus $100 USD and delivery costs applies.

26. How does physical redemption work?

When you redeem, your KAU or KAG tokens are “burned” (removed from circulation), and the corresponding physical metal is allocated for delivery via logistics partners. Redemption is initiated from your Kinesis account settings.

27. What happens to the KAU or KAG when the underlying metal is redeemed?

The redeemed KAU or KAG tokens are destroyed (burned) and permanently removed from circulation, ensuring the 1:1 backing between remaining tokens and vaulted metal stays in balance.

28. Can KAU and KAG generate a yield while I hold them?

Yes, holders earn a monthly Holder’s Yield from 15% of global transaction fee revenue, distributed proportionally among KAU and KAG holders and paid in physical metal.

29. Can KAU and KAG be held in an external blockchain wallet?

Yes, KAU and KAG can be held in external wallets that support the Kinesis blockchain. They can also be sent to verified third-party accounts or wallets.

30. What makes KAU and KAG different from other digital gold and silver products?

KAU and KAG provide full legal title to allocated metal, free storage, physical redemption with industry-low minimums, and monthly yields paid in physical metal—not found in most competitors.