Kinesis Money: A Complete Guide to Digital Gold and Silver with Yield

Brad. M

7/21/20253 min read

Kinesis Money is a blockchain-based monetary system backed 1:1 by physical gold and silver. It offers a hybrid financial experience, combining the reliability of precious metals with the accessibility and speed of modern fintech.

This guide covers:

How Kinesis works

Its metal-backed assets (KAU & KAG)

Earning yields

Minting and spending

Buying, selling, redeeming physical metals

Strategic accumulation tips

1. How Kinesis Works

Kinesis is built on the premise of restoring value-backed money by linking blockchain tokens directly to physical assets.

KAU = 1 gram of physical gold

KAG = 1 ounce of physical silver

Each unit of KAU or KAG is fully backed by vaulted bullion held in secure storage facilities across multiple jurisdictions. This backing is independently audited and insured.

These assets can be:

Bought and sold on the Kinesis Exchange

Transferred globally in seconds

Spent with a debit card

Redeemed for physical bullion

Used to earn yield

2. Key Offerings from Kinesis

A. KAU (Gold-Backed Token)

Backed 1:1 by 1 gram of gold

Stored in secure, insured vaults

Redeemable for physical gold when minimums are met (usually 100g+ for physical redemption, or 1g+ for digital holding)

B. KAG (Silver-Backed Token)

Backed 1:1 by 1 ounce of silver

Also fully redeemable and spendable

Subject to slightly higher volatility than KAU due to silver’s nature

C. Kinesis Exchange

Trade KAU, KAG, BTC, ETH, USDT, USD, EUR and more

Low spreads and transaction fees

Instant liquidity between metals and fiat or crypto

D. Kinesis Card

Spend gold and silver in real-time using a Visa-linked debit card

Metal assets are converted at the point of sale into local currency

Works globally wherever Visa is accepted

E. Physical Redemption

Redeem gold/silver for physical delivery

Typically starts at:

Gold: 100 grams

Silver: 200 ounces

Redeemed bullion is shipped securely to your address

3. Earning Yield

Kinesis offers real, spendable yield paid in KAU and KAG, depending on your activity within the system.

There are four primary types of yields:

A. Holder’s Yield

Earned by holding KAU or KAG in your wallet

Paid monthly

Funded by a share of transaction fees

Example: If you hold 10g of gold (KAU) for a full month, you’ll receive a % return based on all KAU transactions in the ecosystem

B. Minters Yield

Earned when you mint new KAU or KAG by converting fiat or crypto into fresh gold/silver tokens

0.45% of the total minting fee is paid to you every time the minted KAU/KAG is used in a transaction

Minting requires minimums (e.g., 100 KAU or 200 KAG)

C. Referrer's Yield

Ongoing passive yield from referring others

You get a % from all KAU/KAG held or spent by your referred users

D. Velocity Yield (discontinued in newer models)

Was previously paid based on the spending of metals via card or transfer

May return in future updates

4. How to Buy, Sell, and Mint

Buying Metals

Use your bank card or wire to deposit fiat (USD, EUR, etc.)

Buy KAU or KAG directly from the dashboard or exchange

Also available via crypto (BTC, ETH, USDT)

Example:
Deposit $107 → Buy 1 KAU → Own 1g of physical gold digitally

Selling Metals

Instantly convert KAU/KAG back to fiat or crypto

Withdraw to your bank or crypto wallet

No minimum sell amounts

Minting

Minimum 100 KAU / 200 KAG

You lock in metals from the bullion market

Receive new KAU/KAG directly from mint

Start earning Minters Yield

Example:
You mint 200 KAG with $6,000. Each time any of your KAG enters a transaction, you earn a percentage back over time.

5. Strategy to Acquire Gold or Silver with Yield

If you’re starting small:

Step-by-Step Starter Strategy:

  1. Start with weekly buys – Example: $20/week in KAU (≈0.187g)

  2. Hold until you accumulate 1g+ – Yields kick in once funds sit 24–48 hrs

  3. Track Holder’s Yield monthly – Reinvest earnings to compound

  4. Consider Minting when feasible – If you accumulate 100g gold or 200 oz silver, minting becomes worthwhile for additional yield

  5. Redeem physically – Once thresholds are met, choose to have bullion shipped or continue accumulating digitally

6. Fees and Costs

Trading fees: ~0.22–0.45% depending on trade size

No storage fees for KAU/KAG holdings

Redemption shipping: You pay insured shipping fees when requesting physical metals

Card use: Currency conversion applies at point of sale

Final Thoughts

Kinesis Money bridges the old and new world: true precious metals ownership with the convenience of modern finance. Unlike ETFs or paper contracts, every unit of KAU and KAG represents real, auditable gold or silver.

For small investors, it’s a powerful tool to:

Hedge against inflation

Accumulate real assets

Generate passive yield

Retain the ability to spend or redeem when needed

The strategy is simple: stack KAU/KAG over time, let it earn yield, and eventually decide whether to hold, spend, or redeem.