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Redeeming KAU and KAG for Physical Metal

Physical redemption is the process of swapping your digital KAU or KAG tokens for the actual gold or silver they represent. In simple terms, you turn the numbers in your account into bars or coins you can hold.

Why Redemption Matters

The option to redeem is built into the system from the start. You’re not stuck with just digital holdings — you have the right to request the physical metal if you want it.

Many traditional precious metals products make this difficult. Some trusts or funds set very high minimums for physical delivery, like 10,000 ounces of silver, which puts it out of reach for most regular people. Kinesis uses much lower thresholds: 200 ounces for silver and 100 grams for gold. That makes it more realistic for smaller holders who might eventually want the physical form.

The costs are also kept straightforward — typically 0.45% of the redeemed value plus a flat $100 delivery fee. It’s not free, but it’s designed to be reasonable compared to some other options in the industry.

How the Process Works

Any verified account holder can start a redemption request once they meet the minimum amounts. The platform works with established logistics partners — Loomis, Brinks, and Malca-Amit — to handle secure, insured shipping to your chosen address (subject to local rules and customs).

Once the physical metal is shipped, the matching digital tokens are burned (permanently removed from circulation). This update is recorded on the blockchain, so the total supply adjusts accordingly and the 1:1 backing stays accurate.

Comparison with Other Options

For context, some well-known products have much higher bars to entry. The Sprott Physical Silver Trust, for example, requires 10,000 ounces for physical redemption. Gold products like PAXG or XAUT often need the equivalent of around 430 ounces. Kinesis’s lower minimums (200 oz silver, 100 g gold) make physical delivery more accessible for individuals who don’t operate at institutional scale.