The Kinesis Bullion store is open for business

Kinesis is proud to announce the official opening of the Kinesis Bullion store, offering clients industry-leading pricing on independently-produced, investment-grade gold and silver bullion products.

While our goal is to reintroduce gold and silver as money, at Kinesis, we understand the value of holding physical gold and silver in your possession, and the economic freedom a personal collection brings.

The first bullion series showcases the bespoke artistry of the Kinesis in-house design team in a choice selection of rounds and bars that would make timeless additions to any bullion collection.

For the initial opening, the Kinesis Bullion store will be focused on offering silver bullion coins and bars – and shipping solely within the United States, with gold products and regional expansion to follow. We are currently seeking wholesalers across multiple regions to assist in the local distribution of Kinesis Bullion products, extending their availability to more clients worldwide.

Kinesis Bullion Series​

The inaugural Kinesis bullion series features the artistic motifs of the Greek goddess of justice, Themis, on our range of Kinesis silver bullion bars, and the Egyptian goddess, Ma’at, on the Kinesis coins.

The Bullion series has been designed to embody the intrinsic values of the Kinesis system: honesty, fairness, trust, balance, harmony, and justice with bespoke designs crafted entirely in-house by our talented team of artists.

In line with Kinesis’ commitment to quality, every single gold and silver product achieves a minimum fineness of 9999 (gold) and 999 (silver), with certification provided. All bullion coins and bars are subject to lab testing procedures to ensure the highest quality standards.

The Kinesis Physical Mint​

Through the Kinesis Bullion store, clients can purchase the finest investment-grade bullion independently manufactured in our 56,000-square-foot mint and refinery facility, based in Istanbul, Turkey. The refinery and mint can produce bullion at wholesale capacity for the Kinesis Bullion store and other major bullion retailers.

The decision to manufacture our own unique gold and silver products was taken to offer investment-grade coins and bars at extremely competitive pricing to our community. Whereas other suppliers have no choice but to purchase gold and silver from manufacturers, Kinesis’ close control over each stage of the production of our products, allows us to offer our customers unique value.

Buy gold and silver with KAU and KAG​

In an intriguing advancement for the precious metals industry, the Kinesis Bullion store will enable Kinesis users to purchase bullion products with their Kinesis gold (KAU) and silver (KAG). By making payments with Kinesis currencies, users have the opportunity to buy precious metals in the most cost-effective way, eliminating the price risk that comes with purchasing bullion with fiat currencies.

As another option, Kinesis Bullion products can also be purchased directly via bank transfer to the Kinesis Bullion store.

Delivery​

We have taken every step to ensure that buyers are satisfied from the moment of purchase to the point their bullion product reaches their door, with insured delivery on all of our bullion products.

The Kinesis Bullion store offers free shipping on orders above $199. We deliver items purchased at the store within 7 working days of receiving payment across the United States.

Part of your collection​

Following the launch of Kinesis Bullion, we will continue to expand into the commercial physical precious metals space, both in our bullion retailing provision and wholesale supply.

As Kinesis coins and bars enter the personal vaults of bullion collectors and silver stackers everywhere, it will drive brand awareness of Kinesis throughout the industry. The physical bullion products, the same as the platform’s product offering, will become synonymous with quality and fairness. Another powerful string to Kinesis’ bow, the store reaffirms Kinesis’ position as a global leader in the precious metals space.

Kinesis fully supports those seeking physical ownership of precious metals. The Kinesis Bullion store offers bullion of superior value and unmistakable quality for anyone wishing to begin or grow their physical precious metals collection.

Visit the Kinesis Bullion Store today!

Visit the official news post on Kinesis website.

 

[Tom Coughlin]

Thank you Tom for your engagement on this serious and confusing matter. Would you kindly provide some needed clarification?

The Kinesis Mint physical bullion products are produced from trading stocks of our Mint in Istanbul, which may come from international or domestic markets, alternatively from redemptions out of the KMS.

Can you clarify who you mean by "our" . Are you speaking of/as CEO ABX? Are you speaking of/as CEO Kinesis Cayman? or Are you speaking of another corporate, or buisiness entity? By your statement alone, I interpret your meaning to NOT include Kinesis Cayman since I have not seen documentation of How can KMS redeem from itself? But if true that it can, How would that appear on the blockchain? Are their redemption fees associated with this redemption described?

The stocks being utilised for production are of course not part of the Kinesis pool and audit while in the production process. However, once the products are complete they may be deposited back into the system via EPDs incrementally, either waiting for sale and shipment to the USA or to be stored long-term to back the Kinesis pool.

Sorry to be dense, I took a real Headknocker today snowboarding. If the metal is of course Not part of the Pool and audit, How does it get deposited back into the system incrementally via EPD. Do you mean the Kinesis Physical Mint ( as opposed to the Kinesis Digital Mint), is not a part of Kinesis Cayman, and does an EPD ( and do these fees go to the shared master pool?)

When bullion is to be exported to the USA a sale to an importer must be executed, with the importer in our case being Kinesis USA. No Kinesis bullion being held in the USA for sale is part of the Kinesis Pool

Thank you for clarifying that Kinesis USA Inc, is not a part of Kinesis Cayman (KMS), at least in terms of contributing to the Pool (outside of course paying in KMS digital currencies) I'm presuming that this sale to the importer includes associated fees to the pool, and when this occurs, the KMS burns those coins. Is there an identifiable tag placed upon these transactions in the blockchain for clarity to denote this transaction?

I believe I noticed in another post the necessity to many investors for Business organizational clarity. There are many moving Legal/Lawful parts in your organization. To the heart of it lies Bailee/Bailor Titlement issues for the precious metals under your care, as well as broader interdependency of these entity implications that Investors and users of your system need clarity on to trust the system. One need only look at an every broadening landscape of imploding Centralized Exchanges to see the carnage of Misplaced trust.
Sincerely looking forward to answers.

Hi AmaLlulLa,

Firstly I am speaking on behalf of the Kinesis Global Group, which is all the Kinesis related entities in our global group. Our team has extensive exchange and trading operational experience specialising in precious metals. Bullion Capital is a physical bullion trading house and provides liquidity on the ABX along with other market makers. The reason why Kinesis (a Kinesis related entity) is able to redeem is because we operate the market making function on the KMS. By doing this we bring additional liquidity cost savings and attractive pricing/spreads to our users. For anyone who has built out an exchange before they would know that you are typically required to pay a market maker to offer their liquidity services on the exchange and it is not cheap. Many proper market making deals I have seen have been in the range of $100k per month for a couple of pairs and normally you need to indemnify their losses. It is not a plausible situation to charge the market maker fees, as they are bringing capital at risk and liquidity into the exchange. So, because we know what we're doing having made markets in precious metals for around ten years, we have been in a position to offer this service to our users and pass on the cost savings. Really to offer a proper precious metals trading solution that is competitive on pricing, you need to do the market making yourself. This is why you see Gold Money and BullionVault also doing their own market making.

I will add that it is because that we offer our own market making liquidity services that we are completely siloed and immune from the disaster unfolding in the crypto markets at the moment. The way liquidity sharing occurs in the crypto market is through an arrangement called liquidity re-marketing, which is basically a structure where smaller exchanges deposit their customer deposits with larger exchanges who aggregate and provide liquidity to the extent of deposited digital assets. If the higher up exchange falls over, then it is falling over with many other smaller exchanges customer deposits. FTX was one of the largest liquidity providers to other exchanges in the world. There must be a tremendous amount of pain out there in the crypto exchange world. Our foresight here in building everything ourselves closed down this area of risk for us. So where our explorer may have been a little neglected in its user friendliness, our exchange and trading system allowed us to dodge what may have been a catastrophic bullet. With this being the case, it's difficult to dispute the strength of our model. Perhaps grant the Kinesis team a little bit of credit for building the fantastic systems that we have.

Regarding metal coming out of the vault in Turkey to be used in the Mint, it is as simple as this - To withdrawal metal out of the vault it must first be redeemed from the market maker account in the KMS with the associated coins being burned/redeemed out of the coins in circulation. We do receive KAG for the metal we send to the US and of course fees are generated from that. As we expand our bullion product range and distribution, we will be facing bullion dealers and other retail/wholesale distributors across the world. Jewellers and bullion dealers are going to be playing a larger and larger part in the Kinesis system.

Regarding the Bailee/Bailor title query, all the information is out there and we have been very clear of the arrangement from the beginning. Notwithstanding this we will write a precise article that we will share with the community at large. At a high level, I assume you understand that Kinesis is a Member of the ABX and utilises the ABX's safe keeping service through the ABX QAF and established vaulting network. These services are contractually passed downstream via our T&Cs to our users with no storage fee. This is how it was setup since the beginning, but I will have our legal team write an article with the precise details, which hopefully satisfies your query.

 

[Dante Roman]

Hi AmaLlulLa,

Firstly I am speaking on behalf of the Kinesis Global Group, which is all the Kinesis related entities in our global group. Our team has extensive exchange and trading operational experience specialising in precious metals. Bullion Capital is a physical bullion trading house and provides liquidity on the ABX along with other market makers. The reason why Kinesis (a Kinesis related entity) is able to redeem is because we operate the market making function on the KMS. By doing this we bring additional liquidity cost savings and attractive pricing/spreads to our users. For anyone who has built out an exchange before they would know that you are typically required to pay a market maker to offer their liquidity services on the exchange and it is not cheap. Many proper market making deals I have seen have been in the range of $100k per month for a couple of pairs and normally you need to indemnify their losses. It is not a plausible situation to charge the market maker fees, as they are bringing capital at risk and liquidity into the exchange. So, because we know what we're doing having made markets in precious metals for around ten years, we have been in a position to offer this service to our users and pass on the cost savings. Really to offer a proper precious metals trading solution that is competitive on pricing, you need to do the market making yourself. This is why you see Gold Money and BullionVault also doing their own market making.

I will add that it is because that we offer our own market making liquidity services that we are completely siloed and immune from the disaster unfolding in the crypto markets at the moment. The way liquidity sharing occurs in the crypto market is through an arrangement called liquidity re-marketing, which is basically a structure where smaller exchanges deposit their customer deposits with larger exchanges who aggregate and provide liquidity to the extent of deposited digital assets. If the higher up exchange falls over, then it is falling over with many other smaller exchanges customer deposits. FTX was one of the largest liquidity providers to other exchanges in the world. There must be a tremendous amount of pain out there in the crypto exchange world. Our foresight here in building everything ourselves closed down this area of risk for us. So where our explorer may have been a little neglected in its user friendliness, our exchange and trading system allowed us to dodge what may have been a catastrophic bullet. With this being the case, it's difficult to dispute the strength of our model. Perhaps grant the Kinesis team a little bit of credit for building the fantastic systems that we have.

Regarding metal coming out of the vault in Turkey to be used in the Mint, it is as simple as this - To withdrawal metal out of the vault it must first be redeemed from the market maker account in the KMS with the associated coins being burned/redeemed out of the coins in circulation. We do receive KAG for the metal we send to the US and of course fees are generated from that. As we expand our bullion product range and distribution, we will be facing bullion dealers and other retail/wholesale distributors across the world. Jewellers and bullion dealers are going to be playing a larger and larger part in the Kinesis system.

Regarding the Bailee/Bailor title query, all the information is out there and we have been very clear of the arrangement from the beginning. Notwithstanding this we will write a precise article that we will share with the community at large. At a high level, I assume you understand that Kinesis is a Member of the ABX and utilises the ABX's safe keeping service through the ABX QAF and established vaulting network. These services are contractually passed downstream via our T&Cs to our users with no storage fee. This is how it was setup since the beginning, but I will have our legal team write an article with the precise details, which hopefully satisfies your query.

Hi Tom,

Thanks for the detailed explanation, and looking forward to the bailee/ bailor article.

You mention that Kinesis provides market making allowing for significant cost savings and protection from outside forces. Is this for KAU and KAG only? If so, is there anything in place for the current trading of crypto pairs and future trading on Kinesis Pro to address costs and impacts of crypto market turmoil?

Thanks.

 

[Uchiki]

Hi Tom,

Thanks for the detailed explanation, and looking forward to the bailee/ bailor article.

You mention that Kinesis provides market making allowing for significant cost savings and protection from outside forces. Is this for KAU and KAG only? If so, is there anything in place for the current trading of crypto pairs and future trading on Kinesis Pro to address costs and impacts of crypto market turmoil?

Thanks.

My understanding is that the market making extends to the crypto pairs offered at the Exchange.

In terms of security, we also have this in the Terms of Service:

https://forum.kinesis.money/threads/what-does-kinesis-do-with-crypto-on-the-exchange.468/#post-2006

 

[Dante Roman]

My understanding is that the market making extends to the crypto pairs offered at the Exchange.

In terms of security, we also have this in the Terms of Service:

https://forum.kinesis.money/threads/what-does-kinesis-do-with-crypto-on-the-exchange.468/#post-2006

Thanks Uchiki. It will be interesting to see the liquidity and number of pairs on Kinesis Pro if indeed Kinesis is the sole market maker

 

[Tom Coughlin]

We will likely have another couple of Market Makers (MMs) for Kinesis Pro. We of course operate like a proper exchange with true liquidity directly into our exchange and certainly not from any other exchange. The MM agreements we have are very favourable to Kinesis and of course the MM is required to deposit assets to be able to trade and make the market in the assets. This differs from the vast majority of crypto exchanges which are really just Straight Through Processing (STP) platforms that deposit client assets with other exchanges, they do not even have a matching engine and Central Limit Order Book (CLOB) and being an exchange is really just an illusion.

Our team has members from the commodity and foreign exchange community who have played cornerstone roles during the transition from open outcry and telephone trading systems to electronic systems. It is astounding how quickly markets evolve. ABX broke through boundaries to offer an integrated multi-locational global exchange with multiple regional trading hubs around the world. Kinesis pushes horizons forward further in the monetary space and will not stop pushing further and further forward.

 

[Dante Roman]

We will likely have another couple of Market Makers (MMs) for Kinesis Pro. We of course operate like a proper exchange with true liquidity directly into our exchange and certainly not from any other exchange. The MM agreements we have are very favourable to Kinesis and of course the MM is required to deposit assets to be able to trade and make the market in the assets. This differs from the vast majority of crypto exchanges which are really just Straight Through Processing (STP) platforms that deposit client assets with other exchanges, they do not even have a matching engine and Central Limit Order Book (CLOB) and being an exchange is really just an illusion.

Our team has members from the commodity and foreign exchange community who have played cornerstone roles during the transition from open outcry and telephone trading systems to electronic systems. It is astounding how quickly markets evolve. ABX broke through boundaries to offer an integrated multi-locational global exchange with multiple regional trading hubs around the world. Kinesis pushes horizons forward further in the monetary space and will not stop pushing further and further forward.

Thanks Tom, much appreciated