Sam Briggs

9th March 2021

The Advantages of Digital Silver Stacking

Kinesis offers a 21st-century solution to using gold and silver as money again. We believe in moving out of paper and into digitally represented, 1:1 allocated physical bullion.

We believe in stacking physically as well as digitally and each holds value to the modern metalist culture. We put together a quick comparison of the differences between physically and digitally stacking silver.

Digital silver stacking

With physical stacking, there’s all the benefit of touching and owning your silver in your possession, something that is undoubtedly held by you. As far as real-world utility, unfortunately, there’s no easy way you can use your silver coins or bars as an everyday currency, as highlighted in this video. Also, if required, silver can be difficult to liquidate, and there’s always some level of risk involved in keeping your metals at home.

The upside of digital silver stacking is you can use your physical silver as money, holding your wealth in physical silver outside of the traditional banking system. You own fully allocated silver securely stored in the Kinesis vaults, in your name. Then, instantly convert your silver into fiat for spending on day-to-day items, as and when you need it.

Of course, the only real disadvantage of digital silver stacking is you can’t take it out and look at it, whenever you want. That said, every ounce of physical silver underpinning KAG is fully redeemable, with low fees and low minimum withdrawals requirements. Additionally, with Kinesis you can earn a passive holders yield by stacking silver.

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How do I know my silver is really there?

Kinesis has taken every step possible to make sure you know your silver is in safe hands.

All precious metals are:

  • Stored in world-class vaulting facilities without charge.
  • Independently audited twice a year.
  • Fully allocated, with legal title held in the holders’ name at all times.
  • Fully redeemable.
  • Fully insured.
  • Audits

    All physical gold and silver bullion within the system undergoes independent, biannual audits by Inspectorate, a leading global physical commodity audit and inspection specialist. The results of all audits are available – here.

    Blockchain Record

    Every KAG (1 oz of silver) and KAU (1 g of gold) on the Kinesis blockchain can be viewed via this live link. Every time new precious metals are introduced into the system a record is stored on the blockchain, maintaining an immutable and irrefutable ledger of all gold and silver within the system. Kinesis then correlates the existing balance of our KAU and KAG on the blockchain to our vaulting infrastructure.


    All precious metals behind Kinesis digital currencies are fully redeemable. So, if you do want to take delivery on your silver, you can redeem as little as 200oz, with a fee of 0.45% + $100.

    How can I trust Kinesis?

    Kinesis is born from Allocated Bullion Exchange (ABX), an Australian public company and leading electronic institutional exchange for allocated physical precious metals, with over 10 years of experience facilitating global trade. Kinesis brings the extensive vaulting network and precious metals trading experience of ABX to facilitate the trade of physical precious metals on a global scale.

    The ABX and Kinesis vaulting network extends across 12 vaults in 8 countries, including: Brisbane, Dubai, Hong Kong, Liechtenstein, London, New York, Singapore, Sydney and Zurich.

    How is storage free?

    All storage fees are eliminated by a share of global transaction fees charged across the Kinesis system, and the robust infrastructure of Kinesis’ bullion vaulting network, covering all major trading hubs globally.

    How does KAG benefit me?

    Digitalising 1:1 allocated silver is the next logical step in enabling easy access to true monetary value, which you can fully trust. Kinesis simply covers all the troublesome parts of holding your silver in safe storage for you, while allowing you to spend silver on day-to-day items, like a cup of coffee.

    Kinesis Silver (KAU) merges the best of physical and digital worlds, transforming physical silver into an optimal everyday currency, which you can spend whenever and however you wish. Fully accessible for instant conversion to fiat, as you spend it on the go. This means that you can hold all your finances in silver and gold, practically withdrawing completely from fiat and the banking system, and allowing you to fully regain control over the flow of your money. Kinesis enables using silver as money once again, and only touching fiat when absolutely necessary.

    With Kinesis, stacking silver earns you a passive yield

    Part of what makes Kinesis unique is that we give more than half of our global transaction fee revenue back to users, in the form of the Kinesis yield system. A 52.5% share of every transaction fee taken across the entire global monetary system is distributed back to the users, rewarding them for their participation. This means that with Kinesis, you can earn a passive holders yield, simply by stacking silver.

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