Kinesis Money: A Complete Guide to Digital Gold and Silver with Yield
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:
Start with weekly buys – Example: $20/week in KAU (≈0.187g)
Hold until you accumulate 1g+ – Yields kick in once funds sit 24–48 hrs
Track Holder’s Yield monthly – Reinvest earnings to compound
Consider Minting when feasible – If you accumulate 100g gold or 200 oz silver, minting becomes worthwhile for additional yield
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.