Each Kinesis KAU and KAG is directly allocated with the corresponding weight of physical precious metal. This allocation is always on a 1:1 ratio. Allocated legal title remains with the holder of the Kinesis currency, ensuring that proportional ownership of the allocated gold and silver always resides with the KAU and KAG holders. The bullion behind the Kinesis digital currencies will never appear on the Kinesis balance sheet, this reduces counterparty risk when choosing to hold your bullion with Kinesis.
The Kinesis currencies are the next best thing to owning gold or silver in your hand, but with the added benefits of online access, trading, real-world application, and the security of fortified vaulting.
Kinesis currencies are not a "paper metal" product, which means that your metal ownership is not dependent upon the ability of, for example, an exchange-traded fund (ETF), contract for difference (CFD), or commodity future to obtain and redeem metal for you when you want to sell it.
Your precious metals are not recorded on Kinesis or ABX balance sheets, which means that we do not have any direct claim on the metals. We simply safeguard them on your behalf, in 15 vaulting hubs in 13 cities across the globe: Dubai, Hong Kong, Istanbul, Vaduz, London, New York, Singapore, Sydney, Toronto, Zurich, Panama City, Batam and Brisbane.
You can find more information on our audit page.