Cameron Parry, CEO of Tally, is the first employer in the country to convert its payroll into gold bullion, decimating consumer purchasing power. Mr. Parry shared the reasons for this decision and how it essentially gives staff more for their money.
He said: ‘With the cost of living crisis going from bad to worse, it didn’t make sense to keep offering pound pay rises as its value erodes further by the day. It was like putting a bandage on an open wound.
“We see that the purchasing power of the pound continues to decline at an alarming rate as the value of gold has steadily increased throughout 2022.
“Gold is a proven inflation hedge and has maintained its purchasing power for millennia. At times like these, when conventional money steadily loses purchasing power, gold offers people the best chance of staying ahead of inflation.
According to the latest official figures, consumer price inflation reached 7% in March, its highest level since 1992. In contrast, the value of gold has risen 11% since the start of the year.
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Gold is denominated in “tally”, with each “tally” representing one milligram of physical gold the customer owns, which they can then save and spend anywhere – including shops and restaurants in the UK and abroad using the Tally app and Tally Debit MasterCard.
If the price of gold rises against the British pound, the sterling value of the account will also rise, giving users more pounds and pence to spend wherever they want.
Tally is Britain’s first savings account with a Mastercard debit card anchored in real physical gold rather than sterling.
Customers looking to contain inflation can consider transferring their pounds to a Tally account, where they are instantly converted into gold at wholesale prices.
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Instead of keeping money in the bank, this may be something to consider for those who want to invest but don’t know where to start.
Ella Fraser, 25, is head of digital marketing at Tally and was paid in gold.
She said: “These days the price of everything seems to be rising and young people are increasingly worried about the value of the pound in their pocket.
“I think it’s important for bosses to consider more innovative ways to help their staff through these difficult times, and having the ability to agree your salary into account is a great way to do that.”
Mr Parry employs more than 20 people and says those who wish to continue to receive their wages in pounds will be allowed to do so.
Mr. Parry has started piloting his gold payroll system among senior executives and will soon roll it out across the company.
PAYE taxes are applied normally, taking into account the exchange rate of gold to pounds.
As an example, a gross monthly salary that was previously £4,000 would be defined as 82,000 gross points – 82,000 milligrams of gold – on their payslip.
The new pay system was announced as the Office for National Statistics released data showing that the average worker’s regular earnings fell by 1% in real terms in the 12 months to February 2022.
When discussing gold for the ordinary person, Antonia Medlicott, financial editor at InvestingReviews.co.uk reminded Brits never to “put all their eggs in one basket”.
She explained that the acceleration of digital technologies means that gold is now something that can be used for everyday transactions.
She said: “Gold has traditionally been seen as a store of wealth rather than something to use for your day-to-day transactions, but the acceleration of digital technologies is changing all that. Crypto skeptics looking for an alternative to the pound might find a gold-linked debit card more appealing because gold is an asset that has stood the test of time and is not just a passing fad.
“However, people should not lose sight of the fact that the value of gold, like any other asset, can go up and down. future than today. It’s never a good idea to put all your eggs in one basket.
“So including gold in a broader diversified portfolio is probably the best strategy for someone looking for an inflation hedge.”