Natalie Laz

1st April 2021

The Ease of Redemption with Kinesis

How Kinesis stands out on a physical silver market and why there is no better place for redeeming your precious metals.

How much could physical silver be worth if its price was not artificially suppressed for years? Is the recent Reddit uproar an indication that a cannot-be-missed moment to invest in precious metals is happening right now? Is it attainable for a small trader to participate in silver’s miraculous multiplication without the excessive redemption fees proving to be unconquerable?

The short answer is – Yes

Silver has long been considered the ‘people’s money,’ having a price 70 times lower than gold and therefore being far more affordable for an independent day trader. But is that enough to make it widely accessible for a small investor? It turns out that’s not always been the case.

Most providers fail to recognize the importance of making physical silver easily accessible for an enthusiastic individual. Owning silver is still associated with exorbitant redemption fees and inaccessible withdrawal minimums, typically established at 1000 ounces and higher.

The Kinesis Solution

Kinesis understands the necessity of accommodating easy access and redeemability for an individual investor. Motivated by providing security and reassurance to the trader, the Kinesis Monetary System offers a redeemable amount five times lower than the market standard, starting at just 200 ounces for silver and 100 grams for gold.

Moreover, this approach enables maintaining one of the best silver prices across the market globally and dramatically tight spreads, currently as low as $0.21 per ounce for silver and $0.10 per gram for gold.

*All information is correct at the time of publishing but may be subject to change.

The Drawbacks of Owning Physical Assets

Owning precious metals is typically combined with a wide range of inconvenient liabilities. From risks corresponding to storing the metals in-house, to the substantial expenses associated with depositing them into a vault. Let alone the enormous redeemability fees, additionally immobilizing already solidified assets. Moreover, in the case of investors deciding to obtain paper gold or silver in a bank, there is a 95% chance it will not be allocated.

The physical metals market seems to be regularly dealing with yet another scandal, as it fails to meet surging buyers’ demand, interminably postponing deliveries of gold & silver bullion that may or may not be in their possession, like Schrödinger’s cat. Although it is a particularly appealing time to invest in physical metals, the buyers’ confidence is fragile, as the market has been offering limited protection.

It is not surprising that investors are starting to pay much closer attention to the safety measures of the processes in which their assets are stored. Fully allocating precious metals is undoubtedly the safest direction to protect one’s savings, but it does not always encourage liquidity. Most importantly, exchanging and moving gold and silver is a considerably expensive procedure, with the leading companies offering high-priced redeemability fees and even higher withdrawal amounts.

vault with allocated precious metals silver

What is Physical Redemption?

Redemption is the act of repayment or withdrawal of fixed-income security stored with a bank or a company. In the case of Kinesis, physical redemption describes redeeming the underlying bullion attached to the Kinesis currencies; digitalised physical silver (KAG), gold (KAU), and in the near future, digitalised physical emerald (KEM).

As investors’ eyes turned towards physical silver, looking for the most reliable way to obtain and store their assets, it soon became apparent that most providers do not offer an affordable solution. The majority of businesses, such as PSLV, require 10 000 silver ounces, equating to ten 1000 ounce bars as their minimal redeemable amount – an insurmountable barrier for an average investor, rendering silver another unachievable luxury. Kinesis recognizes this market standard’s unattainability, offering a far more viable 200oz Silver and 100g Gold minimum, making precious metals easily accessible for everyone who wishes to secure their savings smartly.

Moreover, Kinesis withdrawal fees also stand in stark contrast with the market norms, remaining as low as 0.45% plus $100 delivery cost, as presented in the table below.

Withdrawal Fees

withdrawal low fees redemption redeeming silver and gold cheap

In order to illustrate these numbers better, let us assume for a moment that the KAU market price is currently $60 per gram and 1 oz of KAG costs $30. The table below depicts calculations based on the minimum withdrawal amount for digitalised silver and gold.

Withdrawal Costs Breakdown

ease of redemption cheap withdrawal low fees gold 100g silver 200 oz physical bullion

As an example, Wall Street Silver member, Jim Forsythe, recently redeemed 200 oz physical silver (200 KAG) from the Kinesis vault in New York. The total cost for redemption, including delivery, worked out as 8.17% above the spot price. View his meticulously documented due diligence post here.

The Benefits of Bringing your Bullion to Kinesis

Kinesis Redemption terms are certainly impressive when compared to the majority of popular providers, but depositing existing bullion in Kinesis vaults is an equally attractive opportunity.

Transferring precious holdings into Kinesis’s vaults is not only free of charge but also an excellent guarantee of security. Kinesis vaulting partners; Loomis, Brinks and Malca-Amit, provide the most advanced vaulting technology and facilitate the logistical infrastructure to ensure your bullion is safe.

Exchanging Physical for Digital (EPD)

Gold and silver bullion can easily be brought into Kinesis, enabling higher liquidity and the benefit of a recurring yield.

Exchanging physical precious metals for digital gold (KAU) involves a 0.10% fee and 0.20% fee in the and digital silver (KAG) case.

*All EPD fees are waived until the end of the PMO (Public Minting Offer) period.

Depositing Fees

depositing fees bullion precious metals gold silver physical redemption stacking

This is why Kinesis stands out on the Physical Metals Market.

  • Security and Trust: KAU and KAG are backed by 1:1 allocated investment-grade gold and silver bullion, securely vaulted and comprehensively audited bi-annually by world-renowned independent auditors; Inspectorate International, a Bureau Veritas company, making it an ideal solution to mend trader’s tarnished confidence.
  • Simplicity: Kinesis brings technologically-driven liquidity, efficiently combining physical gold and silver with blockchain technology, with every ounce virtually assigned to its owner.
  • Depositing bullion with Kinesis ensures excellent protection in world-renowned vaulting facilities, with no storage fees. Additionally, digitalising precious metals allow it to benefit from the unique Kinesis Yields reward system.
  • Redeemability: Last but not least, Kinesis understands the absolute necessity of making physical metals easily redeemable, positioning itself as a prime spot physical exchange to own physical silver, as well as gold.
  • Conclusion

    There is no other exchange in the world that offers redeemability as low as 200 ounces. Excellent redemption terms not only offer vital reassurance but also facilitate the exceptionally tight spreads within the Kinesis Monetary system.

    As silver indeed holds the potential to outperform gold over the course of the next few years, there has probably never been a better moment to join the silver market uprising. What is even more inviting, it has never been this easy to own precious metals, in the history of investing.

    Kinesis removes all the obstacles that have been, until now, discouraging investors from enriching their portfolios with silver and gold. Digitalised, liquified, and with exceptionally low redemption fees, Kinesis KAG and KAU offer an unconquerable alternative to the traditional assets.

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